Posted by The Baze on February 21, 2001 at 07:58:18:
but, please don’t go to too much trouble to re-research what you’ve already posted. I’ll try to find the original post in the archives.
Unfortunately, I cannot make the convention this year. Too bad, because the week long scotch, cigars, and especially liberal bashing sounds far more fun than anything else I’ll be doing.
Tom Bazley
To Da Baze… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 19, 2001 at 15:30:32:
Our original posts on cash method election are now waaaaay down the page, so I thought I’d re-post your answer to my original comments, followed by my response thereto…say THAT 10 times as fast as you can!
“I thought I had heard that Rev-Proc 2000-22 had been updated to spell out that the cash method of accounting would only apply to firms that have receivables that were expected to be collected w/in 120 days. Sales on longer term notes would therefore not apply. I haven’t read this myself, but someone mentioned it to me.”
They are talking about Rev. Proc. 2001-10, which clarifies and supercedes Rev. Proc. 2000-22. Your associate has misread the 120-day receiveables part. What Rev. Proc. 2001-10 seems to say on the subject is one of two things: that for purposes of determining who is a qualifying taxpayer (i.e.-< $1m in annual gross revenues), AR’s of under 120 days are treated as constructively received on day 1 OR that taxpayers that switch to cash method under the Rev. Proc. are required to include