The tax free auto stimulus for consumers has boosted business for auto dealers across the nation who will need to know the Cash for Clunkers tax rules to save money, tax advantage of tax deductions, and avoid future IRS tax problems.
Encino, CA, September 15, 2009 — While many car buyers are enjoying their $4,500 non-taxable cash vouchers from the federal Cash for Clunkers program, tax experts say that the dealerships experiencing a much-needed boost in sales could also benefit from further IRS tax breaks if they know the Cash for Clunkers tax rules.
According to tax resolution specialist Michael Rozbruch, dealerships must accurately account for the taxability of the credit amount they receive from the government in order to save money and avoid serious IRS tax problems. While the full amount of the auto stimulus voucher in addition to any scrap value the dealer receives for the customer’s trade-in must be included in the dealership’s income, auto dealers can also offset any ordinary and necessary business expenses from participating in the program.
“Struggling auto dealerships that are benefiting from the voluntary vehicle trade-in and purchase program won’t want to overlook the tax deductible expenses of participating in the program that can save them money, such as costs associated with disposing of the trade-in vehicle,” said Rozbruch, founder and CEO of Tax Resolution Services, Co., a company that provides affordable IRS help to people seeking income tax relief.
The IRS is also advising dealerships to maintain proper documentation of any transactions including gross receipts from the sale of the new vehicle and expenses incurred.
“It’s a good idea for any business to maintain clear and consistent business records because it ensures that they will receive the full amount of tax deductibles to which they are entitled,” Rozbruch said. “Also with IRS tax audits of small businesses on the rise, proper record keeping will help any business or individual get the tax help they need while making sure they avoid additional IRS penalties.”
Tax Resolution Services is dedicated to providing affordable solutions to businesses and individuals who find themselves in trouble with the IRS. Their team of expert tax attorneys, enrolled agents and CPAs has a success rate of 90% – second to none in the industry – and an Offer in Compromise Settlement Rate of $0.13 on the dollar. For more information or to receive a FREE tax relief consultation, visit www.taxresolution.com or call 866-IRS-PROBLEMS.
PressRelease Distribution By PressReleasePoint
Contact:
Debbie Edwards
Tax Resolution
Encino, CA
818-201-3326
[email protected]
http://www.taxresolution.com
