The American Institute of CPAs has endorsed a bipartisan bill in Congress that would offer auto dealerships tax relief. The Supply Chain Disruptions Relief Act would allow dealerships to wait until as late as 2025 for their inventory to be replaced in order to determine income attributable to the sale of inventory in 2020 or 2021. The bill is sponsored in the House by Representatives by Dan Kildee (D-MI) and Jodey Arrington (R-TX).
The AICPA thanked the two for seeking relief for automobile dealers who use Last-In-First-Out (LIFO) accounting. Such dealers “are struggling to replace inventories in the wake of various COVID-19-related government restrictions that caused disruptions in foreign trade and the global supply chain,” the organization wrote,
