U.S. representatives intend to reintroduce a bill designed to provide tax relief to auto dealers that use the “last in, first out” accounting method, or LIFO.
The U.S. Senate passed the Supply Chain Disruptions Relief Act in December, but time ran out for the House to consider its version of the bill.
The National Automobile Dealers Association wrote at the time that the unanimous Senate approval positioned the proposed legislation for inclusion in a tax package this year, for instance.
NADA says that due to diminished inventories since the pandemic’s onset, dealers using LIFO face “major unanticipated tax liability due to circumstances beyond their control.”
The bill approved by the Senate last year would have given the Treasury Department authority to allow dealers using LIFO extended time to replace inventories before they must pay taxes on 2020 or 2021 inventory sales.
U.S. Reps. Jodey Arrington, R-Texas, and Dan Kildee, D-Mich., plan to introduce a bill for LIFO relief during the current House session that matches last year’s.
Originally posted on Auto Dealer Today