Pay Less Tax. Save More Money.™
LIFO is one of the best tax incentives for companies that carry inventory. An IRS-approved and recommended method, referred to as the Inventory Price Index Computation (IPIC) minimizes this increase in income (and in taxes) and provides audit protection. While not every company may show an improved benefit, most show a 30-60% improvement over traditional LIFO methods. If you aren’t using a LIFO or if you use a traditional LIFO method, you should evaluate the IPIC method. Inflation presents special problems in terms of accounting, and LIFO can significantly reduce tax liability.
Since 1983, SourceCorp has worked closely with CPA firms, auto dealers and companies that carry inventory to increase cash flow and reduce taxes through LIFO inventory solutions.