Key accounting method considerations for 2013 returns

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08/18/2014 by Washington national tax services (WNTS)
Key accounting method considerations for 2013 returns

At a glance

Key elections and accounting methods taxpayers should consider for 2013 returns.

Filing a federal income tax return can cause a taxpayer to adopt a method of accounting, both in general and with respect to a specific item. Accordingly, a taxpayer should consider what accounting methods it intends to adopt prior to filing its return. Failing to consider adoption of an accounting method may result in reporting an item under an impermissible method, inadvertently accelerating income, or inadvertently deferring a deduction. 

This Insight includes:

  • a survey of some commonly overlooked annual accounting method elections that may need to be made with a federal income tax return,
  • a list of common automatic method changes that may decrease taxable income for the period, and
  • a list of common automatic method changes that likely increase taxable income for the period, but also may allow a taxpayer to begin reporting on a permissible method.