Accrual-method requirement dropped for some service providers.In Chief Counsel Notice CC-2001-010, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. announced a change in its litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. position that certain taxpayers must use the accrual method of accounting. The IRS previously had told many cash-basis taxpayers, such as physicians and contractors, who provide services, that their use of materials in their trades or businesses constituted the sale of merchandise. Therefore, they were required to use the accrual method of accounting. After outlining a series of court losses in this area, the new notice said the IRS was studying the issue. Until further guidance is available, the IRS will not assert that taxpayers in businesses similar to those considered by the courts must use inventory accounts and the accrual method of accounting. This change in position specifically affects paving, painting, roofing, drywalling and landscaping contractors; taxpayers who are required to use the accrual method under IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. section 448 are not affected. CFOs Say No to Internet Tax In a recent poll, 57% of chief financial officers favored extending the moratorium on Internet taxes Before these efforts could gain much headway, however, the United States Congress preempted virtually all conceivable forms of Internet taxation. The purpose of the 1998 Internet Tax Freedom Act was to nip in the bud these incipient taxation efforts. for another three years. [ILLUSTRATION OMITTED] Source: RHI RHI Robert Half International RHI Range Height Indicator RHI Roller Hockey International RHI Relativistic Heavy Ion RHI Rigid Hull Inflatable Boat RHI Rhinelander, WI, USA - Rhinelander Oneida County Airport (Airport Code) Management Resources, www.rhimr.com. --Vinay S. Navani, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , tax manager, Wilkin & Guttenplan, PC, East Brunswick, New Jersey. Darlene Pulliam Smith, CPA, PhD, professor of accounting and Sharon Burnett, CPA, PhD, assistant professor of accounting, both of the T. Boone Pickens College of Business, West Texas A&M University, Canyon. |
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