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9. How often is paint purchased? 10. At what discount do you purchase parts? (will
probably vary with make of vehicle) 11. What are the labor rates charged for repair?
(will vary depending upon type of work needed) 12. Do you supply loan cars? If so, do you get
rebates from rental companies for the loaners? 13. When will a job be booked as a sale? 14. Do you have steady referrals from dealerships? 15. Are deductibles ever waived? What would be the
circumstances? 16. Are liens ever placed on vehicles for sale or
recovery of expenses? 17. If the taxpayer maintains inventory on the
return, ask how the inventory has been computed and of what it is comprised. 18. How is the payroll determined for the repair
staff? (hourly wage, salary, percentage of labor charge or a combination) 19. How is the repair staff treated - employees or
independent contractors? 20. If taxpayer is a C-Corporation, what are the
duties of the current shareholders? 21. What is the current percentage ownership of each
shareholder? 22. Is there any family relationship between the
shareholders? 23. Were relatives of the shareholders employed by
the corporation? 24. How is officer compensation (salary, bonus,
fringe benefits) determined? 25. Does any officer, relative, or group of which
an officer is a member, have dealings with the corporation other than as an
employee? (that is, lessor, vendor, consultant) 26. Does the corporation own or lease vehicles
assigned for the use of specific officer/shareholders? 3-3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Glossary |