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- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
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Updated for 2011
Accounting Methods
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Taxpayers Prohibited from Using the Cash Method
The following taxpayers are prohibited from using the cash method:
1) If your business's average annual gross receipts exceed for the prior three years exceed $10 million.
2) C-corporations and partnerships with C-corporations as a partner with average annual gross receipts exceeding $5 million at any time after 1985.
3) Tax Shelters may not use the cash method.
4) Tax-exempt trusts with unrelated business income.
5) Principal business activities prohibited in Revenue Procedure 2002-28:
- Retail trade: NAICS Code: 44-45
- Wholesale trade: NAICS Code: 42
- Manufacturing: NAICS Code: 31-33
- Mining activity: NAICS Code: 211-212
- Information industries: NAICS Code: 5111-5122
NAICS codes:
You determine your principal business activity by reference to the North American Industry Classification System (NAICS) code published by the Department of Commerce (www.census.gov).
Principal Business Activity:
The Principal activity of a business refers to the business activity that produces the largest percentage of gross receipts in the prior year or the largest average percentage over the three prior years.
Next:
Accrual Method: The accrual Method; Advantages of the Accrual Method; Disadvantages of the Accrual Method; Using Both the Cash and Accrual Methods; How to Elect an Accounting Method on Schedule C
Related Links
- The 12-Month Rule When Prepaying Expenses Under the Cash Method
- The Accrual Method Exception Under Revenue Procedure 2002-28
- Businesses That Could Benefit From Revenue Procedure 2002-28
- Form 3115, Application for Change in Accounting Method
- What Are the Uniform Capitalization Rules?
- What it Means to Capitalize a Cost
- Inventoriable Items
- Valuing Inventoriable Items
- Revenue Procedure 2002-28: The Dollar Test
- Eligible Business Activity Test
- Text of Reg. Sec. 1.162-3
Copyright © 2008-2012 Larry Villano. All rights reserved.