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Changes for Small and Medium Companies

By Stephen Barlas
September 1, 2017

With the tax reform debate about to get under way, at least one already-introduced bill focuses on accounting changes for small and medium-size businesses. That’s the New Ventures and Economic Success Today (INVEST) Act of 2017 (S. 1144) sponsored by Sen. John Thune (R.-S.D.).


Thune is a member of the Senate Finance Committee, so he’ll have some sway when that committee writes a tax reform bill. Sen. Ben Cardin (D.-Md.), who coauthored recommendations on tax reform as cochair with Thune on the Finance Committee’s Business Income Tax Working Group, isn’t cosponsoring S. 1144. But a Senate staffer says that a number of provisions from the Thune/Cardin recommendations are in S. 1144, meaning it could attract Democratic support. Some of its provisions include:


  • More small and medium-sized corporations—those with average gross receipts of $15 million or less over last three years—would be able to use the cash method of accounting.


  • The bill would simplify inventory accounting for small and medium-sized companies so inventory can be deducted immediately, and businesses that have inventories wouldn’t be disqualified if they otherwise can use the cash method of accounting.


Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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