Effective for tax years ending on or after Dec. 31, 2007, Revenue Procedure 2008-23 provides a safe harbor pooling method, the Vehicle-Pool Method, for resellers of cars and light-duty trucks. (Light-duty trucks are trucks with a gross vehicle weight of 14,000 pounds or less.)

The Vehicle-Pool Method allows a reseller to establish a New Vehicle pool for inventories of new vehicles including new cars, new light-duty trucks, and new crossover vehicles including SUVs, minivans, and other similar vehicles and a Used Vehicle pool for inventories of used vehicles.

Revenue Procedure 2008-23 also provides the procedures for a reseller subject to the LIFO pooling requirements to obtain automatic consent to change to the Vehicle-Pool Method.   

The new guidance is in response to an Industry Issue Resolution (IIR) request submitted by Miller Chevalier Chartered and the National Auto Dealership Association. The IIR program aims to resolve frequently disputed or burdensome tax issues.