97th Congress > House > Vote 263
Sponsor: COLEMAN, Earl Thomas (R-MO)
Description: TO AMEND H.R. 3603, BY EXTENDING FARM AND FOOD PROGRAM AUTHORIZATIONS THROUGH FISCAL 1982-83 ONLY, THEREBY CANCELING PROGRAM REAUTHORIZATIONS FOR 1984-85. (MOTION FAILED)
Bill summary: LIFO Inventory Simplification Tax Act of 1981 - Amends the Internal Revenue Code to eliminate the qualification requirement for the last-in, first-out (LIFO) method of accounting that a taxpayer use no inventory method for financial reporting or credit purposes other than the LIFO method.
Allows a taxpayer who adopts the LIFO method to spread increases in taxable income attributable to such change over a ten-year period.
Allows an election by small businesses which use the dollar method of
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pricing inventories under the LIFO method and which have average annual receipts of $5,000,000 or less for the three taxable years ending with the year of election to use one inventory pool for any trade or business. Permits a wholesaler or retailer who uses such method to elect the use of inventory pools based on the applicable Government price index categories for all items of inventory. Allows the use of such index categories in the pricing of inventories under such dollar-value methods.
Allows an election to use a link chain or index method to compute the LIFO value of dollar-value pool without regard to suitability or practicality of any other method.
Repeals the requirement, with respect to liquidation plans adopted after December 31, 1981, that a corporation inventorying goods under the LIFO method treat the LIFO recapture amount with respect to distributed inventory assets as gain from the sale of such assets.
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Bill titles: A bill to amend the Internal Revenue Code of 1954 to simplify the LIFO accounting rules.
Original source documents: Digest of the Congressional Record vol. 151, p. 7713;
Links for more info on the vote: congress.gov
