Even a cash method taxpayer must consistently use accounting methods that "clearly reflect income" for tax purposes.

Question

Quizplus · Accepted Answer

This statement is true. The IRS requires all taxpayers, even those using the cash method, to use accounting methods that accurately and clearly reflect their income for tax purposes. This helps ensure that taxpayers pay the appropriate amount of taxes on their income.

Even a Cash Method Taxpayer Must Consistently Use Accounting Methods