An eligible small business may elect to use the simplified dollar-value method of pricing inventories for purposes of the LIFO method.
For purposes of this section-
The simplified dollar-value method of pricing inventories is a dollar-value method of pricing inventories under which-
The term "applicable Government price index" means-
The term "major category" means-
For purposes of this section, a taxpayer is an eligible small business for any taxable year if the average annual gross receipts of the taxpayer for the 3 preceding taxable years do not exceed $5,000,000. For purposes of the preceding sentence, rules similar to the rules of section 448(c)(3) shall apply.
For purposes of this section-
In the case of a taxpayer which is a member of a controlled group, all persons which are component members of such group shall be treated as 1 taxpayer for purposes of determining the gross receipts of the taxpayer.
For purposes of subparagraph (A), persons shall be treated as being component members of a controlled group if such persons would be treated as a single employer under section 52.
The election under this section may be made without the consent of the Secretary.
The election under this section shall apply-
unless the taxpayer secures the consent of the Secretary to the revocation of such election.
The term "LIFO method" means the method provided by section 472(b).
In the case of a year of change under this section-
For purposes of this paragraph, the year of change under this section is-
26 U.S.C. § 474
EDITORIAL NOTES
AMENDMENTS1986-Pub. L. 99-514 amended section generally, substituting provisions relating to election by eligible small business to use simplified dollar-value method of pricing inventories for purposes of LIFO method for provisions relating to election by eligible small business which uses dollar-value method of pricing inventories under method provided by section 472(b) of this title to use one inventory pool for any trade or business of such eligible small business.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99-514, title VIII, §802(c), Oct. 22, 1986, 100 Stat. 2350, provided that:"(1) IN GENERAL.-The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1986."(2) TREATMENT OF TAXPAYERS WHO MADE ELECTIONS UNDER EXISTING SECTION 474.-The amendments made by this section shall not apply to any taxpayer who made an election under section 474 of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act [Oct. 22, 1986]) for any period during which such election is in effect. Notwithstanding any provision of such section 474 (as so in effect), an election under such section may be revoked without the consent of the Secretary."
EFFECTIVE DATEPub. L. 97-34, title II, §237(c), Aug. 13, 1981, 95 Stat. 253, provided that: "The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 1981."
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.