Common car dealership tax filing mistakes
Filing taxes can be a complicated task, especially for car dealership owners. Due to the car dealership industry’s complex nature, owners must consider how various aspects of the business will affect how their taxes are filed. In order to file taxes as accurately as possible, owners need to be mindful of common mistakes such as incorrectly filing the tax return on cash basis instead of accrual basis or other RFC issues that could lead to drastic results.
Car dealership owners must also examine other components such as discounts and receivables to assure that the taxes are filed according to IRS rules and regulations. From just this brief overview, it is apparent that taxes are no simple matter when it comes to the automobile dealership industry. To succeed when filing taxes, owners must be well-prepared and be knowledgeable about the process.
When it comes to filing taxes, accuracy is key. If you are a car dealership owner and are beginning to file taxes, you must be diligent when recording inventory so that your taxes honestly reflect your business year. By attending to even the smallest detail, you will be doing your dealership a big favor and will avoid future headaches with the IRS.
These details expand beyond just tax forms. You must review all current and past records to make certain that they follow IRS rules. Prevent simple mistakes such as restocking repo inventory back into an old account’s balance in order to re-retail the unit. Though it seems efficient in the moment, those shortcuts are unacceptable when filing taxes.
Commingling funds of your dealership and RFC when making bank deposits is another easy mistake that can lead to serious consequences since that practice breaks the IRS rules. Such imprecision will not be tolerated by the IRS. For this reason, taxes are a serious task for car dealership owners and require all the support that can be provided.
The best way to avoid mistakes
Filing taxes can be overwhelming and seem impossible for car dealership owners. However, you are not without help. Why go through the process alone when you can enlist the services of certified CPAs specializing in auto dealerships? At GYL, our specialists can help guide you through the complicated process of filing your as well as helping to minimize your tax liabilities.
Our trained professionals will simplify the process by eliminating guesswork and making IRS rules as comprehensible as possible for you. If you’re receiving counsel from experts proficient in understanding both IRS rules and the auto dealership industry, those common tax mistakes for car dealerships will be eliminated.
If you want to file taxes as painlessly as possible, then let the professionals at GYL behind the wheel. You will not be in better hands.