Archive July 2022
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Used Vehicle Warranties
By Michael G. Charapp
Charapp & Weiss LLC
Dealer personnel continue to believe that when a dealership sells a used vehicle with a dealer warranty, the FTC buyer’s guide may serve as the warranty document that the customer must receive.
Avoiding Bigger IRS Issues
The TIADA compliance consultation service recently had a dealer reach out to us because they had failed to file several IRS Form 8300s. This brought the dealer to an interesting dilemma: should they tell the IRS or wait and see if the IRS finds out about their mistake? Just know that there are several ways dealers can address issues like these to help avoid further penalties from the IRS.
The 60-Day Rule. Be Careful With Deferred Sales TaxOne of the greatest legislative achievements of TIADA was the passage of deferred sales tax. It allows buy-here-pay-here dealers to pay sales tax from the income stream received from buyers (as opposed to fronting the entire sales tax amount at the time of transfer). Additionally, it eliminates the payment of tax on any portion of the sales price not paid by the buyer. Be careful not to lose the benefits of deferred sales tax. Here is a summary of two of the issues regarding deferred sales tax.
Texas Dealer Scott Allen Elected NIADA President
Scott Allen, owner of Auto Land in Haltom City, began his term as president of the National Independent Automobile Dealers Association for 2022-23 by receiving the President’s Ring Tuesday during the 76th annual NIADA Convention and Expo at the MGM Grand in Las Vegas. In addition to Allen taking the helm at the national association, Greg Zak, President of Dixon Motors in Houston, was elected as the Region 3 Vice President. In addition, Tommy Gregory, owner of Abilene Used Car Sales in Abilene, Texas, was named the 2022 National Quality Dealer of the Year at the Convention.
Dealers Facing Delays, Must Soon Submit Fingerprints
On Thursday, June 30, TIADA attended the TxDMV Board Meeting. Several items were on the agenda, and TIADA also visited with several members of the TxDMV staff. Among other issues discussed, dealers are facing extended delays in renewing their licenses. In addition, dealers must soon provide fingerprints to renew or receive their licenses.
The Best Ways to Handle a Strict Foreclosure
Recently, a lienholder reached out to TIADA to better understand what they referred to as the “20-day letter.” The 20-day letter is a method of doing strict foreclosure. Strict foreclosure is an agreement to accept collateral in full satisfaction of the debt. It can be done through either a voluntary repossession form or inaction by the debtor, as occurs in the 20-day letter.