Auto Dealers Have Safe Harbors for UNICAP §263A
The release of Revenue Procedure 2010-44 provides auto dealers with a solution to UNICAP §263A issues. The IRS believes virtually every auto dealer will benefit from adopting the safe harbors provided by this Rev Proc.
SourceHOV Tax works with many auto dealers and their CPAs and monitors this issue closely. We have developed a seamless solution for adoption of both safe harbors.
It is incumbent upon dealers to make the safe harbor changes to avoid unnecessary hassle from the IRS should the dealership be audited. The safe harbors only exclude dealerships from complying with the onerous requirements outlined in TAM 200736026 if formally adopted with the filing of a Form 3115.