The U.S. Tax Court ruled that a solar equipment manufacturer is required to use the accrual method of accounting. The court ruled that the manufacturer wasn’t entitled to use the installment sale method to report income from the sale of equipment it made. The reason: The equipment was personal property of the kind includible in inventory. Unless otherwise permitted by the IRS, a taxpayer required to use an inventory must use the accrual method of accounting to account for purchases and sales. Agreeing with the IRS, the court held that the taxpayer wasn’t a “qualified small business” for purposes of an IRS exception to the required use of the accrual method. (TC Memo 2019-103)