Auto Dealerships - Audit Technique Guide - Uncle Fed's Tax*Board

i. Sources of other income (commissions, referrals, money held back, rebates, warranty,
etc.)
j. Existence of reserves (not limited to extended service contracts or credit insurance) in
varying forms (self-insured, escrow and trust accounts, finance, etc.)
k. Treatment of lease capital cost reduction payments
l. Employment tax treatment of salesperson incentive programs established by the
manufacturer
m. Economic performance of advertising expenses and accrual of rebates
n. An understanding of all insurance and financing arrangements and any money received as a
result of these arrangements
o. An understanding of all related party and entity transactions and arrangements resulting in
deferrals, losses, at less than arm’s length sales, loans, diverted funds, etc.
p. Did the taxpayer file any Form(s) 3115 to change any method of accounting?
A-8