S.Amdt. 1808

SA 1808. Mr. SCOTT (for himself, Mr. Cruz, Mr. Inhofe, Mr. Cassidy,
and Mr. Blunt) submitted an amendment intended to be proposed by him to
the bill H.R. 1, to provide for reconciliation pursuant to titles II
and V of the concurrent resolution on the budget for fiscal year 2018;
which was ordered to lie on the table; as follows:

Beginning on page 175, strike line 11 and all that follows
through page 177, line 15 and insert the following:
(A) except as provided in subparagraph (B) or (C), include
such advance payment in gross income for such taxable year,
(B) if the taxpayer elects the application of this
subparagraph with respect to the category of advance payments
for goods to which such advance payment belongs, the taxpayer
shall include such advance payment in the taxable year in
which the payment is included in gross income for purposes of
the taxpayer's applicable financial statements, or
(C) if the taxpayer elects the application of this
subparagraph with respect to the category of advance payments
for goods described in paragraph (2)(C), or for services, to
which such advance payment belongs, the taxpayer shall--
(i) to the extent that any portion of such advance payment
is required under subsection (b) to be included in gross
income in the taxable year in which such payment is received,
so include such portion, and
(ii) include the remaining portion of such advance payment
in gross income in the taxable year following the taxable
year in which such payment is received.
(2) Election.--
(A) In general.--Except as otherwise provided in this
paragraph, the election under paragraph (1)(B) shall be made
at such time, in such form and manner, and with respect to
such categories of advance payments, as the Secretary may
provide.
(B) Period to which election applies.--An election under
paragraph (1)(B) or (1)(C) shall be effective for the taxable
year with respect to which it is first made and for all
subsequent taxable years, unless the taxpayer secures the
consent of the Secretary to revoke such election. For
purposes of this title, the computation of taxable income
under an election made under paragraph (1)(B) or (1)(C) shall
be treated as a method of accounting.
(C) Property includable in inventory not eligible for
election.--A taxpayer may not make an election under
paragraph (1)(B) for advance payments for the sale of goods
properly includible in inventory for which the taxpayer has
received substantial advanced payments and the taxpayer has
on hand goods of substantially similar kind and in sufficient
quantity to satisfy the agreement in the year the advance
payment is received.
(3) Taxpayers ceasing to exist.--Except as otherwise
provided by the Secretary, the election under paragraph
(1)(B) shall not apply with respect to advance payments
received by the taxpayer during a taxable year if such
taxpayer ceases to exist during (or with the close of) such
taxable year.
(4) Advance payment.--For purposes of this subsection--
(A) In general.--The term ``advance payment'' means any
payment--
(i) the full inclusion of which in the gross income of the
taxpayer for the taxable year of receipt is a permissible
method of accounting under this section (determined without
regard to this subsection), and
(ii) which is for goods, services, or
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