Revenue Code Section 471

471 c 1 a.

Revenue code section 471. Whenever in the opinion of the secretary the use of inventories is necessary in order clearly to determine the income of any taxpayer inventories shall be taken by such taxpayer on such basis. Code 471 general rule for inventories. Law section 471 a of the internal revenue code provides that inventories must be taken on such basis as the secretary may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting income. As a result a small business that generates less than 25m in revenue is not subject to the general rule for determining inventory.

471 c took effect with the tax cuts and jobs act. Internal revenue code section 471 c 1 b general rule for inventories a general rule.