Jump to content
ATX Community

National average (retail markup)


ILLMAS

Recommended Posts

Does anybody know where I can some information as to what the IRS might use to calculate retail markup for retail and wholesale of sports clothing, accessories and shoes.  I took a look at the IRS retail audit technique guide but didn't find any percentage.

Thanks

https://www.irs.gov/pub/irs-mssp/retail_industry_audit_technique-guide.pdf

 

 

Link to comment
Share on other sites

Illmas, I represented a couple in a audit September 2018.  The Tax Compliance Officer said the industry average for COGS for her retail store was 49.83% of gross sales.  The taxpayer sells new clothing, jewelry, shoes.  They had made such a mess trying to handle the audit themselves, nobody argued with me when I told them it was in their best interest to believe her and stop talking. 

  • Like 2
Link to comment
Share on other sites

9 minutes ago, RitaB said:

Illmas, I represented a couple in a audit September 2018.  The Tax Compliance Officer said the industry average for COGS for her retail store was 49.83% of gross sales.  The taxpayer sells new clothing, jewelry, shoes.  They had made such a mess trying to handle the audit themselves, nobody argued with me when I told them it was in their best interest to believe her and stop talking. 

I hear you, my friend just shared this article:  https://www.forbes.com/sites/robertwood/2019/02/07/trying-to-trick-irs-during-audit-can-mean-criminal-tax-charges/

  • Like 2
Link to comment
Share on other sites

24 minutes ago, ILLMAS said:

Oh my, the things people will do!

Actually, these folks thought it would all work out if he just called the number on the letter and had an honest 1.5 hour interview with the TCO.  What could go wrong?  Husband (engineer) told her that wife's little business was really more of hobby, she didn't really track inventory, and oh yes, we forgot about some merchandise in our attic.  He sent TCO 110 PDF files on a thumb drive.

TCO was livid the first few minutes she and I spoke, but by the end of the conversation she was laughing and said, "He's confident - I'll give him that."

  • Like 1
Link to comment
Share on other sites

1 hour ago, Richcpaman said:

This line:

"but by the end of the conversation she was laughing "

after a few minutes with you, I would presume we would all be laughing.... ;)

 

Rich

 

 

She was so mad I had to do something, anything, to lighten the mood.  I wasn't sure how she'd take it, but the Lord was with me.  😇

  • Like 5
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...