Chris Henderson, VP of Operations

Chris Henderson, VP of Operations

SourceCorp recently experienced a situation where an auto dealer was notified by the IRS that their 2008 and 2009 tax years were the subject of a routine IRS exam. The IRS also indicated it would be looking at §263A issues during the exam. After some negotiation, the IRS said it was willing to drop prior year §263A issues if the auto dealer elects the Safe Harbors as outlined in Rev. Proc. 2010-44. In addition, the IRS required the dealer to adopt the Safe Harbors via Form 3115 for the 2010 tax year by the 9/15 extended due date.

The IRS’ willingness to allow the dealer to move to Safe Harbor methods is in keeping with what IRS Motor Vehicle Specialist Terri Harris relayed late last year when the Safe Harbor guidance came out. Terri’s comments indicated that the IRS would be lenient on dealers for the 2010 and 2011 tax years, giving them time to transition to the Safe Harbors method. After that, dealers may face less forgiving IRS agents.

SourceCorp works with many auto dealers and their CPAs and has developed a seamless solution for the adoption of both safe harbors. We continue to monitor this issue closely and will post additional updates to our blog as they arise. For further information, contact me directly at chris.henderson@sourcecorptax.com.

About Chris Henderson

Chris Henderson is the Vice President of Operations for SourceHOV | Tax and also serves on the executive management team. He joined SourceHOV | Tax in July 2003. As Vice President of Operations, Chris is responsible for all aspects of product delivery and customer service. In addition, he provides technical sales support to the business development group and is responsible for technical direction and regulatory compliance for each of SourceHOV | Tax’s product offerings (LIFO, Cost Segregation, Research and Development Tax Credit, EPAct §179D Certification/Tax Deductions, and Expense Management). As the head of the accounting group, Chris manages all financial-related transactions including budgeting, accounts receivable, accounts payable, and internal financial controls performed at the division level.

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