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

Question

Quizplus · Accepted Answer

This is true. The IRS requires that all taxpayers, including cash-method taxpayers, use accounting methods that accurately reflect their income for tax purposes. This ensures that all taxpayers are paying their fair share of taxes based on the income they actually earned.

Even a Cash-Method Taxpayer Must Consistently Use Accounting Methods That