[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1004 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1004

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


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 4, 1999

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

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow dentists and 
physicians 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 Dentists and 
Physicians Act of 1999''.

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

    (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, 1998.
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