CCC Loan Reporting Survives Change in Automatic Accounting Authority

Abstract

<p>The change in early 2002 allowing taxpayers reporting Commodity Credit Corporation (CCC) loans<strong>1 </strong>as income to switch automatically to treating CCC loans as loans was a revolutionary change that has provided greater flexibility in terms of marketing decisions for program crops.<strong>2 </strong>That development has allowed farm taxpayers to shift freely from treating CCC loans as income to treating CCC loans as loans<strong>3 </strong>which, coupled with the statutory authority to allow taxpayers to elect to treat CCC loans as income,<strong>4 </strong>has allowed taxpayers to switch back and forth in their reporting of Commodity Credit Corporation loans.<strong>5 </strong>However, some have felt that the IRS requirement to send a copy of the Form 3115 directly to the Internal Revenue Service<strong>6 </strong>may have served as a subtle warning that the procedure was under some degree of scrutiny.</p>