The availability of the cash method has changed over time. We discussed the limitations of the cash method in the course. Please give three distinct examples of taxpayers that MAY use the cash method of accounting and three distinct examples of taxpayers that MAY NOT use the cash method of accounting. For each example, give the reason why or why not the method is available.

Answer rating: 100% (QA)

Taxpayers that MAY use the cash method of accounting 1 Small Businesses Threshold Businesses with average annual gross receipts of 26 million or less for the three prior tax years Reason for Availabil... View the full answer