GNYADA November 2017 Newsletter

3 Selected for a DMV Audit? Here’s What to Know

Inventories of DMV documents and plates: passenger plates, commercial plates, in-transit permits, and inspection stickers. DMV will also check to make sure these are stored in the correct manner. Book of Registry (Police Books). Make sure these contain up-to-date information. Dealer Bonding Certificate. Certificates of Sale (MV-50’s). Customer sales folders (sales invoice, lien releases, finance contracts, etc.). Additional documents, such as plate n n n n n recently said, “When merchants collect tax on automobile sales from customers and fail to remit the tax, they’re stealing from the state and the local communities that depend on the sales tax revenue to fund critical public programs and services.” GNYADA Seminar Explains Key Tax Reporting Rules The Association’s 2017 Sales Tax Compliance Seminar will inform

logs, copies of transmittals, and proof of refunds for customers who were overcharged should also be made available. Having all of the above prepared for the Auditor, along with other requested materials, will make the process go more quickly. Please note that dealers must make every effort to provide Auditors with an adequate workspace at the dealership (table/desk, chair) and a nearby functioning electrical outlet. DMV-DIRECT can provide assistance during DMV Audits. DMV-DIRECT can be reached at 718.746.0400.

Several local dealerships have been selected for random audits by the New York State Department of Motor Vehicles. Selected dealers are asked to fill out a questionnaire, contained in an initial letter, and are subsequently contacted by a Senior DMV Accountant to set up an audit. After a date is set, the dealership will be asked to make transaction records available, for a given date-range of roughly six months, for review during the audit. DMV will hold all transaction work until the Auditor arrives. Dealers who are selected for a random audit should also make the following documentation available for the date-range DMV requests:

Dealers Can Face Prison for Unreported Sales Tax

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A Queens used car dealer has been charged with stealing over $330,000 in State and City sales tax. The dealer allegedly failed to report collected sales tax for a period of five years. If found guilty, the dealership could be fined up to twice the unreported amount and the dealer principal could serve up to fifteen years in prison.

dealers about the legal requirements for collecting sales tax on day-to-day transactions. Attendees will also learn about year-end filing deadlines, reducing accounting errors, and preparing for a sales tax audit. This crucial seminar is free to GNYADA Members!

New York State’s Acting Tax Commissioner, Nonie Manion,

2017 Sales Tax Compliance Seminar | November 15, 2017 9:30am12:30pm

Center for Automotive Education & Training 15-30 Petracca Place, Whitestone, NY 11357

FREE FOR GNYADA Members. Reserve your seat today. Contact: Kelsey at kelsey@gnyada.com or 718.746.5900

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • November 2017 3