B&B Company uses the cash basis for accounting purposes. B&B primarily performs a service; however, it does sell a signiﬁcant amount of inventory.

Question

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the taxpayer should advise the IRS within 30 days of receiving permission to change accounting methods that it intends to continue to use the current method of accounting. However, even after the 30 days expire, a taxpayer is not precluded from continuing to use its current method of accounting.

B&B Company Uses the Cash Basis for Accounting Purposes