Some construction industry groups, including the Associated Builders and Contractors and the Construction Financial Management Association, are cheering an Internal Revenue Service proposal on Aug. 1 that reverses an agency policy limiting the use of the completed contract method (CCM) of accounting on home construction contracts.

According to Rich Shavell, president of Shavell & Co., an accounting firm in Boca Raton, Fla., the new proposal affects subcontractors performing construction services on residential projects, including condominiums. Many contractors prefer to use the CCM method because it links the timing of tax payments to earnings, Shavell says. IRS is accepting comments until Nov. 3.