What are the proposed changes?
Congress is considering a proposal that would require the use of accrual accounting for tax purposes by agricultural operations with more than $10 million in aggregated gross receipts.
The proposed reporting changes will impact the ability of producers to:
- manage year-to-year risk
- build working capital, and
- create long-term stability for their operations
For decades, ag businesses have used cash-basis accounting for tax purposes to balance out price volatility and help manage their operations consistent with their cash flow.
In The News
- Farm Futures reports: Tax reform proposal exempts farmers from accounting method change 02/27/14
- Breaking: Victory in the House 02/26/14
- Kennedy and Coe Releases Independent Study Showing $12.1 Billion Negative Impact of Proposed Tax-Law Changes on U.S. Ag Industry 02/19/14
- Ag Alert Reports: Farmers Should Take Notice of Federal Tax Code 01/15/14