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How We Help

Automotive Companies

With over 25 years of experience personalizing our accounting and tax services to clients, we provide solutions that respond to unique automotive industry requirements. Our strong understanding of tax obligations and credits, and our ability to navigate appeals and tax court, make us a valuable extension of your team.

Partner with Polston Tax for comprehensive automobile industry accounting and tax resolution assistance.

Helping Automotive Businesses With Their Biggest Tax Hurdles

At Polston Tax, we understand the tax challenges you face as an automotive business, whether you’re a dealer or a manufacturer. We help you navigate areas such as:

Property tax

Automotive dealers manage high-value inventory that requires complex property tax requirements, demanding accurate reporting. Loaner cars and trade-in vehicles introduce additional complexity to the valuation process, making a partnership with an experienced tax team valuable for your business.

Sales tax

Dealers are responsible for sales tax at the state and local levels. A big challenge with sales tax is understanding the requirements across jurisdictions and how to navigate taxation when buyers purchase in one location and register in another.

Payroll tax obligations

The automotive industry employs a diverse range of employees, including hourly technicians and commissioned sales associates. Tax challenges often come from proper employee classification and managing compensation for commissioned staff.

Research and development (R&D) investment

As a manufacturer, you may tie up significant capital in R&D, leading to challenges with tax obligations. You have options for this situation, and Polston Tax can help you find the right avenue.

Accounting and Tax Planning for

Automotive Dealers

Accounting for used car dealers and new vehicle franchises can be complex. Polston tax helps dealerships navigate distinct accounting challenges and satisfy tax requirements.

Our experience with the Internal Revenue Service (IRS), generally accepted accounting principles (GAAP), and numerous state tax codes enable us to curate an optimal accounting and tax strategy for your dealership. We can analyze your business to determine the most pragmatic revenue recognition strategies and expense reporting. With our support, you can confidently determine and report sales tax from various revenue streams. We also help to determine tax deduction opportunities for expenses like trade-in purchases and vehicle value depreciation.

Automobile Dealer
Tax Resolution

Polston Tax can help you exercise the options available to you when the IRS or state tax commission claims your dealership owes money.

Some options include:

Submitting a tax appeal: Our services increase your chances of a successful appeal when you disagree with a claim from the IRS or state commission.
Requesting currently not collectible (CNC) status: You can qualify for CNC status when financial hardship limits your ability to pay your automotive business tax balance.
Proposing an offer in compromise: The IRS may accept an offer in compromise that is lower than the full amount they claim you owe.
Negotiating an installment agreement: State and federal tax agencies offer payment plans to reduce your balance gradually.
Mitigating financial penalties: We can help you file for IRS First-Time Penalty Abatement and build a strategy to limit penalties and interest.

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Tax Credits That Drive Success in the

Automotive Industry

As a dealership or other business in the automotive industry, you may qualify for several credits. These incentives help you subtract from the money owed to support your business growth and success.

The federal government offers reductions like the Electric Vehicle Tax Credit, a federal credit for sellers of new and used electric vehicles that qualify. The Investment Tax Credit (ITC) consists of various energy-related projects that may apply to automotive businesses investing in solar, wind or other qualified energy systems.

Dealerships and other auto businesses can also benefit from their employment practices. The Work Opportunity Tax Credit applies to companies that hire people from groups facing barriers to employment. Dealerships that qualify as small businesses can use the Small Business Healthcare Tax Credit if they offer a qualified plan from the Small Business Health Options Program (SHOP) Marketplace.

Automotive producers and designers may benefit from other reductions, such as an R&D credit for bringing new efficiencies to manufacturing, design and development processes.

State-specific automotive credits may include incentives for selling clean vehicles, like at the federal level. Other reductions include job creation incentives for automotive manufacturing in states like Georgia and South Carolina. If you research and develop clean energy automotive solutions, you may qualify for benefits. Certain states also have rewards for using advanced battery technologies in the automotive industry.

Our Services for the Automotive Industry

From accounting for used car dealers to tax court representation for franchises, Polston Tax offers diverse capabilities from experienced CPAs and attorneys.

Accounting and Bookkeeping

Keep thorough records of expenses and earnings and make informed choices during tax season with support from Polston Tax.

Advanced Tax Planning

Understand how to minimize your tax obligations in the automotive industry by applying deductions and credits you qualify for.

Tax Return Preparation

Get ready for tax season with the Polston Tax team and allow us to prepare your return for compliance and reduced tax liability.

Small Business Accounting & Tax Planning

Strengthen your recordkeeping and strategize your approach to taxes if you qualify as a small business.

Tax Appeals

Hire Polston Tax to work through the appeals process for tax penalties and increase your odds of winning the case.

Audit Representation

Prepare for your next audit with professional representation that supports you from preparation to presentation.

Penalty Abatements

Address tax penalties from the IRS with abatement options that can help reduce fees and fines.

Installment Agreements

Make tax payments more manageable with an installment plan negotiated by our team.

Tax Court Representation

Take your tax dispute to court and trust Polston Tax to represent your case.

Polston Tax Resolution & Accounting Group Photo

Working With Polston Tax

Collaboration and process personalization drive results in the automotive industry. With Polston Tax, you will follow a precise road map to your objectives with skilled navigators at your side. Our process streamlines the pursuit of your bookkeeping and tax management goals:

• Submit a consultation request

• Schedule an in-person, phone or virtual meeting

• Receive a service proposal and transparent quote

• Collaborate with a dedicated case manager, accountant, tax attorney and tax preparer

Additional Readings

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Automotive Tax Services

How We Help