Starting Your Business/Keeping Tax Records
Accounting Periods and Methods
You must figure taxable income and file
a tax return on the basis of an annual accounting period
called a "tax year". Also, you must consistently
use an accounting method that clearly shows your income
and expenses for the tax year.
Accounting
Periods
Your "tax year" is the annual
accounting period you use to keep records and report income
and expenses on your income tax return. You can use one
of the following tax years.
You adopt a tax year when you file your
first income tax return. You must adopt your first tax year
by the due date (not including extensions) for filing a
return for that year.
Change in Accounting Period
Accounting
Methods
