Daily Tax Report ®

IRS Offers Accounting Relief to Some Smaller Farmers

Feb. 21, 2020, 6:27 PM

Small farmers who missed out on an accounting perk in the 2017 tax law have a way to revoke an earlier election and apply the law’s benefit, the IRS said.

The law exempted “small businesses,” or those with no more than $25 million in annual cash receipts in 2018, or $26 million in 2019, from certain accounting rules under tax code Section 263A, as long as they aren’t “tax shelters” based on another part of the code.

  • Farmers used to have to make an election under 263A(d)(3) to avoid those accounting rules, but doing so subjected them...
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