Cash basis accounting relief

In most cases, businesses with inventory cannot use the cash method. However, small businesses with inventories may be allowed to use the cash method.. source cch. The TCJA expands the availability of the overall cash method of accounting to any taxpayer — other than a tax shelter — meeting the new $25 million gross receipts test under Sec. 448 (c). It also removes the limitations placed on small taxpayers operating in certain industries from using the cash method of accounting.