A coalition of agricultural stakeholders met earlier this week to share information about continuing work in the House of Representatives toward a broad tax reform package. House Ways and Means Committee Chairman Dave Camp (R., Mich.) has said that his committee will pass a reform bill by year’s end, and Member-only meetings are reportedly taking place.
The American Soybean Assn. (ASA) was part of a coalition that wrote to Senate leaders in June regarding their work on a reform package. That letter referenced a discussion draft circulated in the House that could force larger farms that have used cash accounting into the accrual method.
“The discussion draft also recommends harmonizing farm and ranch cash accounting rules with other businesses resulting in the termination of cash accounting for family farm corporations with average gross receipts between $10 million and $25 million… Cash accounting combined with the ability to accelerate expenses and defer income gives farmers and ranchers the flexibility they need to manage their tax burden,” the coalition stated in the letter.
At this time, there is no clear path in the Senate on a tax reform bill. However, the House is reportedly still considering the changes in cash accounting they floated earlier this year.