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