AICPA Tells Senators To Oppose Limit on Use of Cash Method Accounting
The American Institute of CPAs (AICPA) has sent a letter to the chairman and ranking member of the Senate Finance Committee opposing any limitation on the use of the cash method of accounting on natural persons, pass-through entities, personal service corporations and farmers. A proposal under consideration in the Senate would require these companies to change to the accrual method, force their owners to pay tax before they have the cash to pay it, and add to the complexity and cost of compliance for these businesses.