LLC may limit choice of accounting method. (limited liability company): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on August 1, 1994. The length of the article is 610 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: IRC section 448(d)(3) could be interpreted to bar limited liability companies from using the cash-basis method of accounting, but the IRS has chosen not to pursue such restrictions. Section 448 denies use of the cash method to tax shelters and defines tax shelters as including enterprises that must file exemption notices with state or federal agencies. A letter ruling on limited liability companies considered other tax shelter and accounting method issues. The risk still exists that the IRS may decide to restrict the accounting method options for limited liability companies.

Citation Details
Title: LLC may limit choice of accounting method. (limited liability company)
Author: J. Michael Kolk
Publication:The Tax Adviser (Magazine/Journal)
Date: August 1, 1994
Publisher: American Institute of CPA's
Volume: 25 Issue: n8 Page: 471(1)

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