Bulletin No. 2001–2 January 8, 2001

his discretion to except a qualifying taxpayer with average annual gross receipts of $1,000,000 or less from the requirements to use an accrual method of accounting and to account for inventories. Rev. Proc. 2000–22 modified and superseded. Rev. Proc. 99–49 modified and amplified.

Rev. Proc. 2001–11, page 275. Penalties; substantial understatement. Guidance is provided concerning when information shown on a return will be adequate disclosure for purposes of reducing an understatement of income tax under section 6662(d) of the Code and for purposes of avoiding the preparer penalty under section 6694(a) of the Code.