[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4132 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4132

  To amend the Internal Revenue Code of 1986 to allow physicians and 
 dentists to use the cash basis of accounting for income tax purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 1998

   Mr. Manzullo (for himself, Mr. Crane, Mr. Weller, and Mr. Matsui) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow physicians and 
 dentists to use the cash basis of accounting for income tax purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accounting Fairness for Physicians 
and Dentists Act of 1998''.

SEC. 2. CASH BASIS OF ACCOUNTING FOR PHYSICIANS AND DENTISTS.

    (a) In General.--Subsection (b) of section 446 of the Internal 
Revenue Code of 1986 (relating to exceptions to the general rule for 
methods of accounting) is amended to read as follows:
    ``(b) Exceptions.--
            ``(1) In general.--If no method of accounting has been 
        regularly used by the taxpayer, or if the method used does not 
        clearly reflect income, the computation of taxable income shall 
        be made under such method as, in the opinion of the Secretary, 
        does clearly reflect income.
            ``(2) Certain physicians and dentists.--A person engaged in 
        the trade or business of providing a service as a physician or 
        dentist (within the meaning of paragraph (1) or (2) of section 
        1861(r) of the Social Security Act) shall not be required to 
        compute income under an accrual method of accounting.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1997.
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