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Majority of House Members Back ACEC on Cash Accounting

By Gerry Donohue posted 09-11-2014 10:00

  

Published in Last Word

An aggressive grassroots program led by ACEC has secured the support of a majority in the House—233 Representatives—to preserve the ability of firms to use the cash method of accounting.

The Representatives signed a bipartisan letter opposing pending tax reform proposals that would limit the use of cash accounting to firms with less than $10 million in revenues and sole proprietors. This change would impose significant cash flow problems on many ACEC Member Firms because the vast majority of their costs are labor-related and must be paid before firms are paid by their clients.

A similar ACEC-sponsored letter in the Senate garnered 46 signatures.



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