A bill to amend the Internal Revenue Code of 1954 to allow certain small businesses to use the cash receipts and disbursements method of accounting without regard to any requirement to use inventories.

Amends the Internal Revenue Code to allow an election by small businesses which are at least half-owned by active participants in the trade or business and which have average annual gross receipts of $1,000,000 or less for the taxable year and for the three taxable years ending with the year of election to use the cash receipts and disbursements method of accounting without regard to any inventory requirements.