Thank you for your interest in the Motor Vehicle Technical Advisor Alternative LIFO for Auto Dealerships New Items Category list. I’ve attached the New Item Categories for quarters ended September 30, 2008 and December 31, 2008. Our preparation of the attached lists included some new information sources for the Technical Advisor program. Rev. Proc. 97-36 provides an Alternative LIFO Method for automobile dealers. Section 4.02(5) defines a new item category and Section 4.02(6) provides that the automobile dealer must use the current-year base vehicle cost of the new item category as the prior-year base vehicle cost of that item category. The result is that there is no inflation or deflation for new item categories. The revenue procedure requires that dealers obtain invoices for each vehicle in ending inventory, group the invoices into item categories and compute an average base cost for each category. Because the Motor Vehicle Technical Advisor program does not have access to all vehicle invoices, the new items list provided by the program uses the best available public information. Dealers however must continue to use actual invoices in their computation. For past lists, one of our primary sources of information was the Kelley Blue Book New Vehicle Guide. We also conducted research using several on-line sources such as Edmunds and Cars.com. Several months ago, Kelly Blue Book determined that it would stop publishing the hard copy books and make the information available on line with frequent updates. Because we need the information as a snapshot in time for the new items categories, the frequent on-line updates meant that Kelley no longer worked as our primary information source. The attached lists were prepared using Black Book as the primary resource. Since each book has its own presentation style, our change may result in some differences in the first lists. We anticipate that any inconsistencies will be eliminated as we continue to use Black Book. Our changes do not mean that any requirements of the Alternative Method have changed
Transcript
Thank you for your interest in the Motor Vehicle Technical Advisor Alternative LIFO for Auto Dealerships New Items Category list. I’ve attached the New Item Categories for quarters ended September 30, 2008 and December 31, 2008. Our preparation of the attached lists included some new information sources for the Technical Advisor program.
Rev. Proc. 97-36 provides an Alternative LIFO Method for automobile dealers. Section 4.02(5) defines a new item category and Section 4.02(6) provides that the automobile dealer must use the current-year base vehicle cost of the new item category as the prior-year base vehicle cost of that item category. The result is that there is no inflation or deflation for new item categories. The revenue procedure requires that dealers obtain invoices for each vehicle in ending inventory, group the invoices into item categories and compute an average base cost for each category.
Because the Motor Vehicle Technical Advisor program does not have access to all vehicle invoices, the new items list provided by the program uses the best available public information. Dealers however must continue to use actual invoices in their computation. For past lists, one of our primary sources of information was the Kelley Blue Book New Vehicle Guide. We also conducted research using several on-line sources such as Edmunds and Cars.com.
Several months ago, Kelly Blue Book determined that it would stop publishing the hard copy books and make the information available on line with frequent updates. Because we need the information as a snapshot in time for the new items categories, the frequent on-line updates meant that Kelley no longer worked as our primary information source. The attached lists were prepared using Black Book as the primary resource. Since each book has its own presentation style, our change may result in some differences in the first lists. We anticipate that any inconsistencies will be eliminated as we continue to use Black Book. Our changes do not mean that any requirements of the Alternative Method have changed for dealerships. Auto dealerships must still use actual invoices to compute Alternative LIFO.
This list is similar to the guidance I provide to examiners who audit automobile dealers’ tax returns and is the result of research by my staff of the best information available to us. Since the list is not an “Official List,” it does not reflect “Service Position” and examiners are not required to follow it.If you have any questions on our changes or on specific vehicles, you may contact me at [email protected]. Thank you.
CAUTION: This list is not intended for pooling purposes.3
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
2008 new model code available 2nd quarter 2008CHEVROLET
Malibu LS- 4-CYL. (2.4L) 1ZG69 Sedan 4D (Retail Only) 1ZG69 Sedan 4D (Fleet Only) Malibu LT- 4-CYL. (2.4L) 1ZH69 Sedan 4D Malibu LTZ- V6 (3.6L) 1ZK69 Sedan 4D Malibu Hybrid- 4-CYL. Hybrid (2.4L) 1ZF69 Sedan 4D (Retail Only) (Late Avail)
2008 new model codes available 4th quarter 2007
CHRYSLER
Crossfire Limited- V6 (3.2L) ZHCS29 Coupe 2D ZHCS27 Roadster 2D
2008 new model codes available 1st quarter 2008
DODGE
Challenger SRT8- V8 Hemi (6.1L) LCDX22 Coupe 2D
2008 new model code available 2nd quarter 2008
Challenger SE LCDH22 2D Coupe Challenger R/T LCDP22 2D Coupe
2009 new model codes available 3rd quarter 2008
Journey SE- 4-CYL. (2.4L) JCDH49 FWD Sport Wagon 4D Journey SXT- V6 HO (3.5L) JCDP49 FWD Sport Wagon 4D JCEP49 AWD Sport Wagon 4D
CAUTION: This list is not intended for pooling purposes.4
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
DODGE
Journey R/T- V6 HO (3.5L) JCDS49 FWD Sport Wagon 4D JCES49 AWD Sport Wagon 4D
2009 new model codes available 2nd quarter 2008 FORD
Focus SES P36 4D Sedan Focus SEL P37 4D Sedan
2009 new model codes available 3rd quarter 2008
Taurus SE P23 4D Sedan P26 4D Sedan AWD
2009 new model codes available 3rd quarter 2008
HONDA
Accord LX- 4-CYL. VTEC (2.4L) CP2538EW Sedan 4D (Manual) CP2638EW Sedan 4D (Auto) (w/o PZEV) CP2638EW Sedan 4D (Auto) (w/PZEV) Accord LX-S- 4-CYL. VTEC (2.4L) CS1138EW Coupe 2D (Manual) CS1238EW Coupe 2D (Auto) (w/o PZEV) CS1238EW Coupe 2D (Auto) (w/PZEV) Accord LX-P- 4-CYL. VTEC (2.4L) CP2548EW Sedan 4D (Manual) CP2648EW Sedan 4D (Auto) (w/o PZEV) CP2648EW Sedan 4D (Auto) (w/PZEV)
CAUTION: This list is not intended for pooling purposes.5
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
HONDA
Accord EX- 4-CYL. VTEC (2.4L) CS1178JW Coupe 2D (Manual) (w/Cloth Interior) CS1278JW Coupe 2D (Auto) (w/Cloth Interior w/o PZEV) CS1278JW Coupe 2D (Auto) (w/Cloth Interior & PZEV) CP2578JW Sedan 4D (Manual) (w/Cloth Interior) CP2678JW Sedan 4D (Auto) (w/Cloth Interior w/o PZEV) CP2678JW Sedan 4D (Auto) (w/Cloth Interior & PZEV) Accord EX- V6 VTEC (3.5L) CP3678JW Sedan 4D (Auto) (w/o PZEV) CP3678JW Sedan 4D (Auto) (w/PZEV) Accord EX-L- 4-CYL. VTEC (2.4L) CS1188JNW Coupe 2D (Manual) (w/Leather Int w/o Navi) CS1188KNW Coupe 2D (Manual) (w/Leather Int & Navigation) CS1288JNW Coupe 2D (Auto) (w/Leather w/o Navi or PZEV) CS1288JNW Coupe 2D (Auto) (w/Leather & PZEV w/o Navi) CS1288KNW Coupe 2D (Auto) (w/Leather & Navi w/o PZEV) CS1288KNW Coupe 2D (Auto) (w/Leather, Navi & PZEV) CP2588JNW Sedan 4D (Manual) (w/Leather Int w/o Navi) CP2588KNW Sedan 4D (Manual) (w/Leather Int & Navi) CP2688JNW Sedan 4D (Auto) (w/Leather w/o Navi or PZEV) CP2688JNW Sedan 4D (Auto) (w/Leather & PZEV w/o Navi) CP2688KNW Sedan 4D (Auto) (w/Leather & Navi w/o PZEV) CP2688KNW Sedan 4D (Auto) (w/Leather, Navi & PZEV) Accord EX-L- V6 VTEC (3.5L) CS2188JNW Coupe 2D (Manual) (w/o Navigation or PZEV) CS2188JNW Coupe 2D (Manual) (w/Navigation w/o PZEV) CS2288JNW Coupe 2D (Auto) (w/o Navigation or PZEV) CS2288JNW Coupe 2D (Auto) (w/o Navigation w/PZEV) CS2288KNW Coupe 2D (Auto) (w/Navigation w/o PZEV) CS2288KNW Coupe 2D (Auto) (w/Navigation & PZEV) CP3688JNW Sedan 4D (Auto) (w/o Navigation or PZEV) CP3688JNW Sedan 4D (Auto) (w/o Navigation w/PZEV) CP3688KNW Sedan 4D (Auto) (w/Navigation w/o PZEV) CP3688KNW Sedan 4D (Auto) (w/Navigation & PZEV)
2008 new model codes available 4th quarter 2007
CAUTION: This list is not intended for pooling purposes.6
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
HONDA
Civic EX-L- 4-CYL. VTEC (1.8L) FG1198JNW Coupe 2D (Manual) (w/o Navigation) FG1298JNW Coupe 2D (Auto) (w/o Navigation) FG1198KNW Coupe 2D (Manual) (w/Navigation) FG1298KNW Coupe 2D (Auto) (w/Navigation) FA1598JNW Sedan 4D (Manual) (w/o Navigation) FA1698JNW Sedan 4D (Auto) (w/o Navigation) FA1598KNW Sedan 4D (Manual) (w/Navigation) FA1698KNW Sedan 4D (Auto) (w/Navigation)
2008 new model codes available 4th quarter 2007
Fit Base GE8729EW 4D Hatchback 5sp GE8829EW 4D Hatchback at Fit Sport GE8749EW 4D Hatchback 5sp GE8849EW 4D Hatchback at Fit Sport VSA GE8769GW 4D Hatchback w/Nav 5sp GE8869GW 4D Hatchback w/Nav at
SX4- 4-CYL. (2.0L) S3L83N8 FWD Sedan 4D (Manual) S3L84N8 FWD Sedan 4D (Auto)
2008 new model codes available 1st quarter 2008
TOYOTA
Corolla Base 1831 4D Sedan 5sp 1832 4D Sedan at Corolla LE 1838 4D Sedan at Corolla S 1833 4D Sedan 5sp 1834 4D Sedan at Corolla XLE 1840 4D Sedan at Corolla XRS 1835 4D Sedan 5sp 1836 4D Sedan at
2009 new model codes available 3rd quarter 2008
CAUTION: This list is not intended for pooling purposes.14
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
TOYOTA
Matrix Base 1931 4D Hatchback 5sp 1932 4D Hatchback at Matrix S 1933 4D Hatchback 5sp 1934 4D Hatchback at 1938 4D Hatchback AWD at Matrix XRS 1935 4D Hatchback 5sp 1936 4D Hatchback at
2009 new model codes available 3rd quarter 2008
Prius Standard- 4-CYL. Hybrid (1.5L) 1220 Hatchback 4D (Auto)
Yaris Base 1462 4D Hatchback at Yaris S 1472 4D Hatchback at
2009 new model codes available 3rd quarter 2008
VOLKSWAGEN EOS Komfort 1F73W2 2D Convertible 6sp 1F73W3 2D Convertible at EOS LUX 1F79W3 2D Convertible at
2009 new model codes available 3rd quarter 2008
CAUTION: This list is not intended for pooling purposes.15
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
VOLKSWAGEN
Jetta TDI 1K277L 4D Sedan 6sp 1K277M 4D Sedan at 1K577L 4D Wagon 6sp 1K577M 4D Wagon at Jetta TDI Loyal 1K2L7L 4D Sedan 6sp 1K2L7M 4D Sedan at
2009 new model codes available 3rd quarter 2008
Jetta Wolfsburg Edition- 4-CYL. Turbo (2.0L) 1K27V1 Sedan 4D (Manual) 1K27V3 Sedan 4D (Auto)
2008 new model codes available 2nd quarter 2008
Tiguan S 5N17V4 4D Utility 6sp 5N17V1 4D Utility at Tiguan SE 5N18V1 4D Utility 5N18V3 4D Utility 4Motion Tiguan SEL 5N19V1 4D Utility 5N19V3 4D Utility 4Motion
2009 new model codes available 3rd quarter 2008
VOLVO
V70 3.2- 6-CYL. (3.2L) FWD Wagon 4D
2008 new model code available 1st quarter 2008
XC70 XC70T6 4D Wagon AWD T6
CAUTION: This list is not intended for pooling purposes.16
NEW ITEM CATEGORIES FOR SEPTEMBER 2008FISCAL YEAR TAXPAYERS
REVENUE PROCEDURE 97 – 36“CARS”
2009 new model code available 3rd quarter 2008
The following sources were used to compile this list:
Edmunds.comCars.comNADAguides.comKelley Blue Book New Car Price Manual 4th Edition 2008Black Book New Car Cost Guide July/August 2008 & October 2008 EditionsAutomotive NewsWhen available: product brochures; manufacturers' price lists &vehicle order guides
CAUTION: This list is not intended for pooling purposes.17
