Cash method available for more small businesses.

• Author: Josephs, Stuart R.
• Position: IRS News - Brief Article

Some small businesses with gross receipts up to $10 million can now use the cash method of accounting.

IRS Notice 2001-76 contains details of proposed rules, and taxpayers may rely on these proposals for tax years ending on or after Dec. 31, 2001.

The proposed rules should be beneficial for service businesses that also sell related products, such as a plumber who sells plumbing supplies. The new rules generally exclude manufacturers, wholesalers, retailers, miners, certain publishers and sound recorders unless they are principally a service business or perform certain kinds of custom manufacturing.

These proposals do not...