Recent discussions in Congressional Committees to limit or prohibit cash accounting in farm and ranch operations has generated considerable discussion.1 On March 12, 2013, the Committee on Ways and Means of the United States House of Representatives issued a discussion draft of suggested ways to reform accounting practices used by small businesses.2 Section 212 of the discussion draft suggested eliminating the use of cash accounting for farmers with gross receipts of more than $10,000,000 which would affect farming and ranching operations structured as partnerships (including LLCs and LLPs) and S corporations as well as sole proprietorships. Section 213 of the discussion draft would change some of the requirements for the use of accrual accounting by C corporations, increasing the number of family corporations that would be required to use accrual accounting.