How to Elect LIFO for Tax and Financial Reporting

Some of the best LIFO tax deferral savings opportunities are available this year since 2022 created inflation that was well or far above historical averages in many industries. The key takeaway to consider is that your expected financial statement issuance date should also be considered your deadline for electing LIFO. For a company with a narrow product mix using the EPIC method would likely benefit from LIFO because there's a minimal administrative costs and sufficient tax to offset those costs. But if you have a diverse product mix and use complex LIFO sub methods, the administrative burdens and outsourcing costs can become higher.