How to Avoid Post-tariff LIFO Reserve Recapture

Tariffs & LIFO Series: Part Three A common concern regarding first-time LIFO adoptions is the risk of having to pay back a material portion of the election year LIFO tax benefit in future periods. This is because during deflationary periods, a certain amount of the LIFO reserve & tax benefit accumulated in previous periods will […]

Which Industries Will Have the Biggest LIFO Tax Benefits from Tariffs?

Tariffs & LIFO Series: Part Two In part one of LIFOPro’s three-part series on tariffs titled How to Use LIFO to Create Tax Benefits from Tariffs, we covered the basics about how LIFO works, why companies use the LIFO method, and why the subject of tariffs will likely drive meaningful, if not historic inflation and […]

How to Use LIFO to Create Tax Benefits from Tariffs

Tariffs & LIFO Series: Part One Inflation is now top of mind following the White House’s announcement of tariffs ranging from 10% to 125%. Retailers and wholesalers reselling imported goods will incur increased costs, and manufacturers purchasing raw materials from foreign sources will also face higher input prices. As a result, elevated goods inflation and […]

Understanding LIFO Accounting for the Food and Beverage Industry Podcast

Recently, our Vice President Bob Richardson joined EisnerAmper’s podcast to discuss LIFO. Along with Richard Colloca (Audit Partner + National Food and Beverage Practice Leader, member of the firm’s Manufacturing and Distribution Group as well as a member of the firm’s Profession Practice Group providing audit, accounting, tax and business consulting services to clients) and […]

Tax Relief in Sight for Dealerships Suffering LIFO Recapture in 2020 – 2021

What is the Supply Chain Disruptions Relief Act? This bill was drafted to provide tax relief to new motor vehicle dealerships using the LIFO method who had qualified inventory liquidations solely attributable to supply chain disruptions that occurred between 2020 – 2021, which in turn caused LIFO recapture & increased tax liabilities to be recognized […]

IRS Auditing More LIFO Calculations than Before

History of IRS LIFO Resources & Audits 1990s – 2000s The frequency & level of scrutiny being given to LIFO by the IRS has varied widely over the past 30 years that LIFOPro has been in business. When LIFOPro begun in 1992, the IRS Chief Counsel’s office employed multiple LIFO experts, and also employed many […]

LIFO Coalition Responds to Tax Policy Center’s Repeal Blog

The LIFOPro team would like to acknowledge an article recently published by The Tax Policy Center (you can read the article for yourself here) suggesting LIFO repeal for the gas + oil industry. The LIFO Coalition, whose mission is working on behalf of its members to protect the ability of businesses to use the LIFO […]

IRS Releases Roadmap for Auditors to use on LIFO Taxpayers

The recent release of a new LIFO practice unit by the Large Business & International (LB&I) division of the IRS suggests that IRS agents will be increasing their focus on LIFO during exams. The “concept unit” titled LIFO records includes a 21 page slide deck PDF file outlining a road map of sorts to guide […]

AICPA Proposal for Section 473 Relief

  The AICPA has requested relief from the IRS and the Treasury Department to help LIFO taxpayers suffering increased tax liability as a result of layer erosion LIFO income that occurred from COVID-19 related inventory liquidations. As touched in our last blog, which can be found at DeFilipps Proposal for Section 473 Relief » LIFOPro […]

DeFilipps Proposal for Section 473 Relief

Willard De Filipps, CPA, PC has ran his specialized accounting and consulting firm since 1978. He’s a renowned expert in automobile dealership tax issues, LIFO inventory valuation method issues & representation before the IRS in diverse tax examination issues. While he offers a resource center for CPA’s through DeFilipps University, he’s been an invaluable resource […]