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