William Hubbard, president elect of the American Bar Association, has written to the House Small Business Committee, objecting to proposals in the draft Tax Reform Act of 2014 and in another bill covering similar areas.
Sound result
In a statement, the ABA said: ‘The existing cash method of accounting produces a sound and fair result because it properly recognizes that the cash a business actually receives in return for the services it provides — not the business’ accounts receivable—is the proper reflection of its true income and its ability to pay taxes on that income. While accounts receivable clearly are important to determining the financial condition of a business and assessing its future prospects, they do not accurately reflect its current spendable income or its present ability to pay taxes on that income.’ Source: ABA
Email your news and story ideas to: [email protected]
