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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4093
Experience:  35 years tax experience, including four years at a Big 4 firm.
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This is a tax question regarding the requirements for

Customer Question

This is a tax question regarding the requirements for converting from cash to accrual method of accounting for tax purposes...We have an S corp client whose average sales per year for the last 3yrs will exceed $10million per year. The company provides air conditioning services for about $3million and new and replacement of A/c units in buildings both commercial and residential for $7-9million. Can we start a "services" corp and use that corp to reduce the revenues of the existing corp thus keeping them under the $10million limits or will the IRS "aggegate" the companies and require a change in accounting method??? Or put another way, what can we do to remain on the cash basis method of acctg for tax purposes?
Submitted: 6 months ago.
Category: Tax
Expert:  PDtax replied 6 months ago.
Hi from just answer. I'mCustomer Great question.I can assist, but need to research the question, attribution rules, and exceptions to the conversion. I can post an offer for the additional time and cost later today, as I can't seem to do that from my phone.
Customer: replied 6 months ago.
My question regarding cash/accrual has not been answered, kindly forward my question to another tax professional to answer........
Customer: replied 6 months ago.
My question regarding cash/accrual has not been answered, kindly forward my question to another tax professional to answer..........
Expert:  PDtax replied 6 months ago.
Sorry I didn't post the offer I promised. Your question did not stay on my list of open questions for follow-up.By the way, it appears you can do what you want, but I didn't finish the research.I'll tell site mgmt to put this back in the queue.

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