A public accounting firm that operates as a professional corporation and has $10 million in gross receipts may use the cash method.

Question

Quizplus · Accepted Answer

Under the IRS rules, small business taxpayers, defined as having average annual gross receipts of $25 million or less in the prior three-year period, are allowed to use the cash method of accounting. Since the public accounting firm has gross receipts of $10 million, it falls under this threshold and can use the cash method.

A Public Accounting Firm That Operates as a Professional Corporation