Installment Sales Fix Reinstated

President Clinton signed legislation last week reinstating the installment sales method for accrual-basis taxpayers. Congress approved the measure Dec. 15, the last day of the legislative session. It was successfully navigated through the end-of-session legislative pitfalls by lead sponsors Rep. Wally Herger, R-Calif., in the House and Sen. Conrad Burns, R-Mont., in the Senate with the assistance of the Independent Insurance Agents of America and other small-business groups.

As approved by lawmakers and signed into law by President Clinton, the provision repeals a ban on the use of the installment sales method for accrual-basis taxpayers that was enacted late last year as part of an omnibus tax and budget reconciliation measure. This ban had required immediate payment of all taxes even if the seller was to receive installment payments over several years.