Definition

• The Internal Revenue Service defines gross receipts as the total amount of money a company collects in the course of business. This amount is not reduced by expenses or any other cash outflows.
  
  

Use

• "Gross receipts" is a term used for businesses. Therefore, taxpayers will see this term only on forms such as Form 1120, Form 1120-S, Form 1065 and Form 1040 Schedule C.
  
  

Difference from Net Receipts

• Net receipts do not include costs and expenses. Therefore, net receipts will always be less than gross receipts, unless a company does not have any expenses.