Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_471
Timestamp: 2020-06-03 06:37:29
Document Index: 389143140

Matched Legal Cases: ['§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471', '§ 471']

Internal Revenue Code, § 471. General Rule For Inventories
I.R.C. § 471(a) General Rule —
I.R.C. § 471(b) Estimates Of Inventory Shrinkage Permitted —
A method of determining inventories shall not be treated as failing to clearly reflect income solely because it utilizes estimates of inventory shrinkage that are confirmed by a physical count only after the last day of the taxable year if—
I.R.C. § 471(b)(1) —
I.R.C. § 471(b)(2) —
I.R.C. § 471(c) Exemption For Certain Small Businesses
I.R.C. § 471(c)(1) In General —
In the case of any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for any taxable year—
I.R.C. § 471(c)(1)(A) —
I.R.C. § 471(c)(1)(B) —
the taxpayer's method of accounting for inventory for such taxable year shall not be treated as failing to clearly reflect income if such method either—
I.R.C. § 471(c)(1)(B)(i) —
treats inventory as non-incidental materials and supplies, or
I.R.C. § 471(c)(1)(B)(ii) —
conforms to such taxpayer's method of accounting reflected in an applicable financial statement of the taxpayer with respect to such taxable year or, if the taxpayer does not have any applicable financial statement with respect to such taxable year, the books and records of the taxpayer prepared in accordance with the taxpayer's accounting procedures.
I.R.C. § 471(c)(2) Applicable Financial Statement —
For purposes of this subsection, the term “applicable financial statement” has the meaning given the term in section 451(b)(3).
I.R.C. § 471(c)(3) Application Of Gross Receipts Test To Individuals, Etc. —
I.R.C. § 471(c)(4) Coordination With Section 481 —
I.R.C. § 471(d) Cross Reference —
For rules relating to capitalization of direct and indirect costs of property, see section 263A.
(Aug. 16, 1954, ch. 736, 68A Stat. 159 ; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(b)(13)(A), 90 Stat. 1834; Oct. 22, 1986, Pub. L. 99-514, title VIII, 803(b)(4), 100 Stat. 2356; Pub. L. 105-34, title IX, Sec. 961(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 115-97, title I, Sec. 13102(c), Dec. 22, 2017, 131 Stat. 2054.)
1986--Pub. L. 99-514, title VIII, 802(b), Oct. 22, 1986, 100 Stat. 2350, substituted “Simplified dollar-value LIFO method for certain small businesses” for “Election by certain small businesses to use one inventory pool” in item 474.
1981--Pub. L. 97-34, title II, 237(b), Aug. 13, 1981, 95 Stat. 253, added item 474.
1980--Pub. L. 96-223, title IV, 403(a)(2), Apr. 2, 1980, 94 Stat. 304, added item 473.
2017--Subsec. (c), (d). Pub. L. 115-97, Sec. 13102(c), redesignated subsec. (c) as subsec. (d) and added new subsec. (c).
1997--Subsec. (b), (c). Pub. L. 105-34, Sec. 961(a), redesignated subsec. (b) as subsec. (c) and added a new subsec. (b).
1986--Pub. L. 99-514 designated existing provisions as subsec. (a) and added subsec. (b).
Amendment by Sec. 13102(c) of Pub. L. 115-97, effective for taxable years beginning after December 31, 2017.
Amendment by Section 961(a) of Pub. L. 105-34 applicable to taxable years ending after the date of the enactment of this Act [Aug. 5, 1997]. Sec. 961(b)(2) provided the following rule:
“(2) Coordination with section 481.--In the case of any taxpayer permitted by this section to change its method of accounting to a permissible method for any taxable year--
(C) the period for taking into account the adjustments under section 481 by reason of such change shall be 4 years.”
Amendment by Pub. L. 99-514 applicable to costs incurred after Dec. 31, 1986, in taxable years ending after such date, except as otherwise provided, see section 803(d) of Pub. L. 99-514, set out as an Effective Date note under section 263A of this title.
STUDY OF ACCOUNTING METHODS FOR INVENTORY REPORT NOT LATER THAN DECEMBER 31, 1982
Pub. L. 97-34, title II, 238, Aug. 13, 1981, 95 Stat. 254, which directed the Secretary of the Treasury to conduct a study of methods of tax accounting for inventory with a view towards development of simplified methods and to report to Congress, not later than Dec. 31, 1982, was repealed by Pub. L. 100-647, title VI, 6252(a)(2), Nov. 10, 1988, 102 Stat. 3752.