IEEPA Tariff Refunds Have Arrived: How to Book Them and Report Them for Tax (Inventory, COGS and Who Gets Paid)
The Supreme Court ruled on February 20, 2026 that IEEPA does not authorize tariffs, and from April 20 CBP has processed refunds through the CAPE function in ACE, open only to the importer of record or its filing broker. Book refunds by where the goods went: reduce inventory for goods still on hand; for goods already sold, generally income or a COGS reduction in the refund year; interest is interest income.
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