How Would Your Dealership Hold Up in an IRS Audit?

Learning Objectives 

  • Understand the key items of interest in the audit guide
  • Understand IRS audit techniques for specific areas
  • What to do in case of an IRS audit
  • Tax Planning Ideas

What’s the Big Deal? 

Tax Gap = $300 Billion per year ! in 2001

Other Reasons to be Concerned… 

  • According to the IRS, since 2001..
    • enforcement activities recovered $43 billion of the tax gap in 2004 compared to $33 billion in 2001
    • Audits of high-income taxpayers ($100,000+) topped 195,000 in 2004 – double the amount in 2001
    • Total audits topped 1,000,000 in 2004 – 37% increase from 2001

New Guidance Issued for Dealerships 

  • New Vehicle Dealership Audit Technique Guide Issued on CD-Rom in January 2005
    • Helps isolate areas of focus
    • Allows for understanding of IRS position
    • Indirectly identifies tax planning opportunities

IRS Audit Guide Table of Contents 



Charles Diegel, CPA

Tom Earley, CPA, MST

Have Questions or Comments?

If you have any questions about this media item, we'd like to hear your opinion. Please share your thoughts with us.

Contact EisnerAmper

* Required