A group of lawmakers from the tax-writing House Ways and Means Committee have written a letter to Treasury Secretary Jack Lew urging the Internal Revenue Service to back off of a proposed rule change modifying the retail inventory method of accounting, which retailers fear could cost them millions of dollars a year.
The National Retail Federation, a trade group representing retailers, welcomed the letter, which was signed by Congressmen Tim Griffin, R-Ark., Vern Buchanan, R-Fla., Pete Roskam, R-Ill., Ron Kind, D-Wis., Pat Tiberi, R-Ohio, Charles Boustany, R-La., and Kenny Marchant, R-Texas. They asked the IRS to reconsider its plans to modify regulations governing the retail inventory method of accounting. Used by many merchants, the method allows retailers to average out the cost of merchandise in inventory rather than tracking specific items. The committee members said the proposed changes would require creation of “costly new inventory tracking systems” and would cost retailers millions of dollars.
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