KEY VOTE: ATR Urges YES Vote on Scott Amendment to Clarify Treatment of Advanced Payments

Senator Tim Scott (R-S.C.) has introduced an amendment (#1808) that would clarify the treatment of advanced payments for accounting purposes to provide needed flexibility for businesses. ATR urges a YES vote on this amendment.

The Senate’s Tax Cuts and Jobs Act codifies a long-standing Treasury rule over advanced payments. However, the codification omits existing exceptions to this rule that give businesses flexibility when selling high-value custom products. Sen. Scott's amendment restores this exception which will allow a smoother accounting process by more accurately matching income with costs. 

Codifying rules for advanced payments without including long-standing, existing exceptions will harm business flexibility and competitiveness. ATR urges a YES vote on Sen. Scott’s Amendment.

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