October 18, 2010 12:00 am

Understanding the IRS?

It may become easier following enactment of the Plain Writing Act of 2010. Signed into law on October 13, 2010, it requires the IRS to translate its documents into “plain writing” within 1 year. Plain writing means language that is clear, concise, well organized, and follows other best practices appropriate to the subject.

Source: H.R. 946

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Tax Glossary

Cash method of accounting

Reporting income when actually or constructively received and deducting expenses when paid. Certain businesses may not use the cash method.

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