Choose the incorrect statement.
A)Books and records may be kept on a different year-end basis than the year-end used for tax purposes.
B)The choice to file on a fiscal year-end basis must be made with an initial tax return.
C)Almost all individuals file tax returns using a calendar year accounting period.
D)An individual may request IRS approval to change to a fiscal year-end basis if certain conditions are met.

Question

Quizplus · Accepted Answer

The incorrect statement is A) because for tax purposes, the IRS requires that the books and records be kept consistent with the tax year-end basis used for filing. This ensures that the financial information accurately reflects the taxpayer's income and deductions for the specific period being reported.

Choose the Incorrect Statement