Questions from Federal Taxation

Q: Do accounting rules determine the amount of income to be reported by

Do accounting rules determine the amount of income to be reported by a taxpayer?

Q: How does a taxpayer’s tax accounting method affect the amount of tax

How does a taxpayer’s tax accounting method affect the amount of tax paid?

Q: Why is it desirable for a new taxpayer to select an appropriate

Why is it desirable for a new taxpayer to select an appropriate tax year?

Q: What restrictions apply to partnerships selecting a tax year?

What restrictions apply to partnerships selecting a tax year?

Q: How could the 52–53-week year prove to be

How could the 52–53-week year prove to be beneficial to taxpayers? Explain.

Q: Under what circumstances can an individual taxpayer change tax years without IRS

Under what circumstances can an individual taxpayer change tax years without IRS approval?

Q: a. Is it correct to say that businesses with inventories must

a. Is it correct to say that businesses with inventories must use the accrual method? b. What other restrictions apply to taxpayers who are choosing an overall tax accounting method? c. Why is the c...

Q: a. Does the term method of accounting refer only to overall

a. Does the term method of accounting refer only to overall methods of accounting? Explain. b. Does a taxpayer’s accounting method affect the total amount of income reported over an extended time peri...

Q: a. When are expenses deductible by a cash method taxpayer?

a. When are expenses deductible by a cash method taxpayer? b. Are the rules that determine when interest is deductible by a cash method taxpayer the same as for other expenses? c. Is a cash method t...

Q: Who may use the completed contract method of reporting income from long

Who may use the completed contract method of reporting income from long-term contracts?