The VSCPA has written to Sens. Tim Kaine and Mark Warner (D-Va.) requesting their signatures on a letter being circulated by several Senators indicating opposition to proposals to limit the use of the cash basis method of accounting.
Former Senate Finance Committee Chairman Max Baucus (D-Mont.) had proposed limiting the use of the cash basis method of accounting in his Cost Recovery and Accounting Discussion Draft from November 2013. The VSCPA “strongly discourage[d]” the inclusion of that limitation in the proposal.
The VSCPA wrote: “We believe preserving the availability of the cash basis method for pass-through entities, personal service corporations and farmers is critically important. Requiring a change to the accrual method would have a significant impact on job growth and the Virginia economy, would affect a wide swath of industries and would impose an unfair burden on those that have traditionally relied on the cash method to pay their fair share of taxes.”