If a taxpayer's method of accounting does not clearly reflect income,the IRS may specify a different accounting method which must be used by the taxpayer.

Question

Quizplus · Accepted Answer

This statement is true. The IRS has the authority to specify a different accounting method if the taxpayer's method does not accurately reflect their income. This is stated in the Internal Revenue Code section 446(b).

If a Taxpayer's Method of Accounting Does Not Clearly Reflect