Event Details
Tax Returns for Businesses Using the LIFO Inventory Valuation Method: Problem Areas and Opportunities in Soon-to-Be-Filed 2006 Returns
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Thursday, March 8, 2007

Presented by

Willard J. De Filipps, CPA

Summary

Learn About Timely LIFO Issues and Opportunities from Leading Expert, Will De Filipps, CPA Many business tax returns for 2006 reflecting LIFO elections will be filed within the next few weeks.  This "how-to" two-hour seminar will focus on critical considerations that reviewers and/or preparers of these tax returns should fully understand.  Presented by noted LIFO expert, Willard J. De Filipps, CPA, this seminar will give you a practical review of considerations, issues and opportunities for filing tax returns for businesses using the LIFO inventory method.  You'll learn what you need to know for returns where LIFO elections have previously been made and for returns reflecting LIFO for the first time.  You'll also get insights, tips and suggestions for dealing with LIFO reserve recapture situations, such as terminating LIFO elections and C to S conversions.  This course is essential for all practitioners who file tax returns for businesses using the LIFO inventory valuation method or considering changing to LIFO.  The presentation time will include ample opportunity for you to ask your most pressing questions to Mr. De Filipps.
 


Program Topics
Will De Filipps will cover an array of critical areas that can affect the current year's income tax return and LIFO calculations, including:
 
Tax returns where LIFO elections have previously been made
  • Information from previously filed Forms 970 that affect the current year's income tax return and LIFO calculations
  • Eligibility requirements to be continually monitored
  • Inventory valued at cost
  • Financial statement conformity requirements
  • Books and records
  • Consistency with calculation methods elected on Form 970 when it was originally filed
  • Other "hot spots" in LIFO inventory situations


Tax returns reflecting use of LIFO for the first time
  • Benefits of making a LIFO election
  • Initial return Form 970 checklist of "Do's & Don'ts"
  • Critical technical changes in the most recent revision of Form 970 (Rev. Dec. 2005)
  • Special issues when electing the link-chain method (i.e., a method other than the double-extension, dollar-value method)
  • Use of hindsight 

Filing tax returns for (new) business clients where their LIFO elections were made in the past by other CPAs

  • What if Form 970 was not filed for initial LIFO election--what remedies are available?
  • Certain LIFO methods/sub-elections are clearly disadvantageous, and should not be made 
  • Other common problems and mistakes
  • Tax Court case example - Huffman v. Comm.
  • IRS adjusts incorrect LIFO computations with taxpayer unprotected by any statute of limitations


Proactive planning for LIFO inventories--changes in the LIFO methodology may protect the client
  • Situations where taxpayer can be protected from the consequences of an unfortunate choice of methods on the initial Form 970
  • Changes that can be made without IRS advance permission, i.e., automatic changes
  • Discussion of examples 
  • Form 3115 filing mechanics
  • Changes that require IRS permission in advance
  • Discussion of examples
  • Procedures for requesting change
  • Form 3115 filing specifics
  • Audit protection--protecting LIFO reserves that have already been built up, albeit incorrectly 

LIFO reserve recapture situations

  • Terminations of LIFO elections 
  •  Basis considerations
  • Alternative procedures for terminating LIFO elections
  • Businesses changes from C to S elections
  • General rules for recapture in C to S conversions and common errors
  • LLC restructurings


Earn CPE Credit

  • Two hours of CPE credit are available for an additional $25 each for each person wishing to receive a CPE certificate for their participation
  • Course Level:  Intermediate 
  • Learn More About CCH's NASBA Registration

Special Bonus
Firms registering for this audio seminar will receive as a bonus the following publication:



Willard J. De Filipps, CPA, consults with CPAs and businesses around the country assisting them in LIFO inventory implementation, changes and planning.  His practical experience includes representation of LIFO applications during Internal Revenue Service audits, in Appeals channels and in technical advice proceedings, and for LIFO change requests involving the IRS National Office in Washington, DC.  De Filipps shares his understanding of dealer tax issues and LIFO in numerous tax conferences and seminars around the country and through numerous published articles.  He has presented LIFO seminars since 1978 and has conducted seminars in-house for CPA firms around the country, business and trade associations, and National and State CPA societies.  He is the author and publisher of Dealer Tax Watch, a quarterly update of essential tax information for auto dealers and LIFO Lookout, a quarterly newsletter with specialized coverage of LIFO news and developments.  He has organized and coordinated annual conferences for CPAs and other professionals serving the auto/truck dealership industries.  De Filipps is the originator of Dealer/CPA 21 Resource Groups, which serve group members by providing technical meetings, information exchange, practice aids and other problem-solving and opportunity expanding activities.   He also co-founded the AutoCPA Group, the original national organization of CPAs whose member firms specialize in automobile dealer clients.

Additional Information

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