Small business taxpayers benefit from several tax reform provisions that simplify tax reporting. These include provisions that exempt small business taxpayers from the requirements to:
Use the accrual overall method of accounting[1]
Maintain inventories[2]
Capitalize certain costs under Sec. 263A[3]
Account for long-term contracts using the percentage-of-completion method[4]
Apply the business interest limitation[5]
For a business to be eligible for small business taxpayer treatment, the taxpayer must not be considered a tax shelter and can’t have average annual gross receipts