...to use the accrual method? Does an internet development and data storage company making under $5 million need to use the accrual method for tax purposes?
Here are the parameters:
About $3 million dollars in gross receipts.
Employ about 60 to 70 engineers.
Currently on the cash method for tax, and have been using it for awhile to my understanding.
Can they continue using the cash method? I think they can since they're under the $5 million mark and they're a service company (no inventory).
Your input is appreciated, as are IRC citations, rev procs, rulings etc.
Thanks!
Here are the parameters:
About $3 million dollars in gross receipts.
Employ about 60 to 70 engineers.
Currently on the cash method for tax, and have been using it for awhile to my understanding.
Can they continue using the cash method? I think they can since they're under the $5 million mark and they're a service company (no inventory).
Your input is appreciated, as are IRC citations, rev procs, rulings etc.
Thanks!