The Federal Trade Commission (FTC) and the Internal Revenue Service (IRS) released two dealer-specific publications at the NADA Conventionês Federal Regulatory Outreach Booth last week that are now available to dealers.
The FTC publication, entitled The FTCês Privacy Rule and Auto Dealers: Frequently Asked Questions, presents 16 questions and answers that commonly arise at automobile dealerships. It addresses such issues as when dealers must give privacy notices and what limits apply to disclosing consumer information to service providers and to manufacturers during the retail delivery reporting process. NADA had repeatedly urged the FTC to issue dealer-specific guidance on the Privacy Rule since it took effect in 2001.
The IRS publication, entitled New Vehicle Dealership Audit Technique Guide 2004, provides guidance on an array of tax issues to IRS employees who audit new automobile dealerships. The IRS sought and received from NADA comments on the guide before it was finalized.
The IRS also issued in January a Motor Vehicle Technical Advisor Alert entitled Electronic Records Retention Requirements for Auto Dealerships. The alert provides a generic list of common files that are necessary for most IRS examinations.
All of these publications are available to dealers through a link on NADAês Web site, www.nada.org. From the home page, scroll down to Special Features and click on FTC and IRS issue guidance to auto dealers.
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