The IRS has issued guidance for farmers who’ve elected out of certain capitalization rules and want to apply the small business taxpayer exemption in the same taxable year. Small business taxpayers are exempt from the capitalization rules under the tax code. To qualify as a small business, a farming business must have gross receipts of $25 million or less for taxable years beginning in 2018, and $26 million or less for taxable years beginning in 2019. Revenue Procedure 2020-13 details how farmers can revoke their election and apply the small business taxpayer exemption in the same taxable year. Contact us for more information.