,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #idg  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,m>* #e1 #bjac ,mr4   
,s*ock 7= himself & ,mr4 ,?ompson (     
,cali=nia7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to exp& !         
availability ( ! ca% me?od ( acc\nt+ =  
small bus9esses1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,small ,bus9ess ,acc\nt+ & ,tax         
,simplification ,act4  #b4 ,cl>ification
 ( ca% acc\nt+ rules = small bus9ess    
7a7 ,ca% acc\nt+ p]mitt$  7#a7 ,9 g5]al 
,section #ddf ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7relat+ to g5]al rule = me?ods 
( acc\nt+7 is am5d$ by add+ at ! end !  
foll[+ new subsection3  7g7 ,c]ta9 small
 bus9ess taxpay]s p]mitt$ ,to use ca%   
acc\nt+ me?od )\t limitation  7#a7 ,9   
g5]al ,an eligible taxpay] %all n be    
requir$ to use an accrual me?od (       
acc\nt+ = any taxable ye>4  7#b7        
,eligible taxpay] ,= purposes ( ?is     

subsection1 a taxpay] is an eligible    
taxpay] ) respect to any taxable ye>    
if--  7,a7 = all prior taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjab1 !      
taxpay] 7or any pr$ecessor7 met ! gross 
receipts te/ ( section #ddh7;c71 &  7,b7
 ! taxpay] is n subject to section #ddg 
or #ddh4  4  7#b7 ,expansion ( gross    
receipts te/  7,a7 ,9 g5]al ,p>agraph   
7#c7 ( section #ddh7;b7 ( su* ,code     
7relat+ to entities ) gross receipts ( n
 m ?an #e1jjj1jjj7 is am5d$ by /rik+    
#e1jjj1jjj 9 ! text & 9 ! head+ & ins]t+
 #aj1jjj1jjj4  7,b7 ,con=m+ am5dm5ts    
,section #ddh7;c7 ( su* ,code is am5d$--
  7i7 by /rik+ #e1jjj1jjj ea* place x   
appe>s 9 ! text & 9 ! head+ ( p>agraph  
7#a7 & ins]t+ #aj1jjj1jjj1 &  7ii7 by   
add+ at ! end ! foll[+ new p>agraph3    
7#d7 ,inflation adju/m5t ,9 ! case ( any
 taxable ye> beg9n+ 9 a cal5d> ye> aft] 
#bjac1 ! doll> am\nt conta9$ 9          
subsection 7b77#c7 & p>agraph 7#a7 ( ?is
 subsection %all be increas$ by an am\nt
 equal to--  7,a7 su* doll> am\nt1      

multipli$ by  7,b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1 by
 sub/itut+ cal5d> ye> #bjab = cal5d> ye>
 #aiib 9 subp>agraph 7,b7 !re(4  ,if any
 am\nt z adju/$ "u ?is subp>agraph is n 
a multiple ( #ajj1jjj1 su* am\nt %all be
 r\nd$ to ! ne>e/ multiple ( #ajj1jjj4  
4  7b7 ,cl>ification ( inv5tory rules = 
small bus9ess  7#a7 ,9 g5]al ,section   
#dga ( ! ,int]nal ,rev5ue ,code ( #aihf 
7relat+ to g5]al rule = inv5tories7 is  
am5d$ by r$esignat+ subsection 7c7 z    
subsection 7d7 & by ins]t+ aft]         
subsection 7b7 ! foll[+ new subsection3 
7c7 ,small bus9ess taxpay]s n requir$   
,to use inv5tories  7#a7 ,9 g5]al ,a    
qualifi$ taxpay] %all n be requir$ to   
use inv5tories "u ?is section = a       
taxable ye>4  7#b7 ,treatm5t ( taxpay]s 
n us+ inv5tories ,if a qualifi$ taxpay] 
does n use inv5tories ) respect to any  
prop]ty = any taxable ye> beg9n+ aft]   
,decemb] #ca1 #bjab1 su* prop]ty %all be
 treat$ z a mat]ial or supply :i* is n  

incid5tal4  7#c7 ,qualifi$ taxpay] ,=   
purposes ( ?is subsection1 ! t]m        
qualifi$ taxpay] means--  7,a7 any      
eligible taxpay] 7z def9$ 9 section     
#ddf7;g77#b771 &  7,b7 any taxpay]      
describ$ 9 section #ddh7;b77#c74  4     
7#b7 ,con=m+ am5dm5ts  7,a7 ,subp>t ,d (
 "p ,,ii ( sub*apt] ,e ( *apt] #a ( su* 
,code is am5d$ by /rik+ section #dgd4   
7,b7 ,! table ( sections = subp>t ,d (  
"p ,,ii ( sub*apt] ,e ( *apt] #a ( su*  
,code is am5d$ by /rik+ ! item relat+ to
 section #dgd4  7c7 ,effective date &   
special rules  7#a7 ,9 g5]al ,! am5dm5ts
 made by ?is section %all apply to      
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjab4  7#b7 ,*ange 9 me?od ( acc\nt+ ,9
 ! case ( any taxpay] *ang+ ! taxpay]'s 
me?od ( acc\nt+ = any taxable ye> "u !  
am5dm5ts made by ?is section--  7,a7 su*
 *ange %all be treat$ z initiat$ by !   
taxpay]2  7,b7 su* *ange %all be treat$ 
z made ) ! cons5t ( ! ,secret>y ( !     
,treasury2 &  7,c7 ! net am\nt ( !      
adju/m5ts requir$ to be tak5 into acc\nt

 by ! taxpay] "u section #dha ( !       
,int]nal ,rev5ue ,code ( #aihf %all be  
tak5 into acc\nt ov] a p]iod 7n great]  
?an #d taxable ye>s7 beg9n+ ) su*       
taxable ye>4