CFOs Warned Not To Book That Tariff Refund Until the Cash Is In the Bank

In a recent article published by Thomson Reuters, Partner Thomas Alongi weighs in on how accountants are advising manufacturing companies to slow down on recording money that hasn't arrived yet from tariff refunds, as serious issues may arise on the books.

Manufacturing companies potentially owed tariff refunds are being told by their accountants to slow down — because recording money that hasn't arrived yet could create serious problems on the books.

"Unless it's in your bank account," companies should be careful about recording the refund, Thomas Alongi, partner at national accounting and advisory firm UHY, said in a June 25, 2026, interview. Alongi, who has spent more than 25 years working with automotive and manufacturing clients, said navigating IEEPA tariff refunds has become one of the most pressing issues he is fielding from CFOs in the manufacturing sector. The warning highlights a problem emerging across the industry: the legal case for refunds may be strong, but the accounting answer is far from settled.

The issue became urgent after the Supreme Court's ruling struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The ruling left importers with the same question: can we put that refund on the books now, or do we wait for actual cash?

Most advisers say wait.

"There has been certainly some divergence in practice — i.e., some are booking it, and some are not," Alongi said. "There is no published U.S. GAAP specifically addressing the current tariff situation."

That gap is not a technicality. It means two companies in identical legal positions can report dramatically different earnings — simply because one booked a receivable and the other put a footnote in its filing. Investors comparing those companies are not looking at the same picture.

What companies need to do

The refund opportunity is real, but it requires action. Alongi said CFOs are asking two kinds of questions: how to successfully navigate the refund process, and whether they can book anticipated refunds as receivables before the money arrives. On the first question, Alongi noted that confirming a company is the Importer of Record and understanding which tariff entries are eligible for refund is a more complex determination than it might appear, given the intricacies of the harmonized tariff system. UHY's tariff team works with clients directly to navigate that process. On the second question, his answer is consistent: wait.

On the accounting side, the message from advisers is clear: pursue the refund, protect the legal claim, and disclose the potential recovery clearly in financial statement footnotes. Do not record it as income before the money arrives.

As Alongi put it, the advice to clients is to not book anything until refunds are received.

Read the full article published by Thomson Reuters.