12/12/2001
NFIB Senior Vice President Dan Danner released the following statement in reaction to a new IRS rule that will allow many small businesses to use a simpler method of accounting when determining their tax liability:
"The administration deserves a lot of credit for the new cash accounting rules unveiled today, which will definitely make it easier for hundreds of thousands of small-business owners to file their taxes. U.S. Sen. Kit Bond (Mo.) and Rep. Wally Herger (2nd Dist. -- Calif.) also deserve credit for all the hard work they have done on this issue.
"The accrual method of accounting is so confusing that it makes college football's Bowl Championship Series (BCS) formula look like simple, logical first-grade arithmetic.
"By allowing Main Street to use the simpler cash method, business owners will be able to spend more time and energy kick-starting the national economy, which is exactly what we all need right now. Dentists, veterinarians and contractors will be especially helped by this change, since the cash method of accounting more accurately reflects their true incomes.
"While this is a step in the right direction and a victory that NFIB has worked very hard to help achieve, we will continue to fight for a simpler, fairer tax code for all small-business owners. There is still a long way to go."
CONTACT: Michelle Dimarob, (202) 554-9000
