Tax Audit - Auto Dealerships Edition Ebook

TABLE OF CONTENTS

CHAPTER 1: INDUSTRY BACKGROUND

• Titling Issues and Processes 1-7
• Records 1-3
• Initial Interview 1-11
• Information Sources on Used Car Dealers 1-18
• Industry Overview 1-1
• Industry Jargon 1-1
• Impact of State Regulation and State Law 1-2
• Curbstoners 1-3
• Consignments 1-5
• Automobile Sales 1-9
• Auctions 1-6

• General Information 2-1
• Change of Accounting 2-2

• Warranty Contracts 3-5
• State Departments of Transportation/
• Sales Taxes, Registration & Licensing Fees 3-7
• Repossessed Vehicles 3-11
• Rebate Income 3-4
• Non-Taxable Receipts 3-8
• Motor Vehicles 3-10
• Miscellaneous Income 3-2
• Internal Controls 3-1
• Income Reporting 3-8
• Fee Income 3-3
• Dealer Financing 3-6
• Consignments 3-6

• Trade-in Valuation 4-6
• Trade-Ins 4-4
• Specific Audit Techniques 4-14
• Sample Workpapers 4-19
• Repossessions 4-11
• References 4-17
• Issues 4-12
• Inventory Valuation 4-3
• General Audit Techniques 4-13
• Cost Basis of a Trade-In 4-4
• Accounting Records 4-3

• Short Term Liabilities 5-7
• Retained Earnings 5-10
• Other Current Liabilities 5-7
• Loans to Shareholders 5-3
• Loans Versus Constructive Distributions 5-4
• Loans From Shareholders 5-6
• Inventory 5-3
• Fixed Assets 5-5
• Deferred Income Accounts 5-8
• Cash 5-1
• Accounts Receivable 5-2

• Vehicle Service Contracts
• Travel and Entertainment 6-15
• Rent Expense 6-14
• Policy Work or Adjustments 6-13
• Payroll 6-13
• Legal and Professional 6-5
• Interest Expense 6-5
• Insurance Expense 6-10
• Group Health Insurance 6-11
• Freight and Delivery 6-6
• Employee Benefits 6-6
• Dues and Subscriptions 6-5
• Demonstration Expense 6-8
• Corporate Owned Life Insurance 6-12
• Contributions 6-4
• Commissions and Fees 6-7
• Amortization 6-2
• Advertising Expense 6-2
• (Extended Service Warranty) 6-12