I’m a business owner and we file our taxes on cash basis. When do I need to file under the accrual basis?
Business TaxUnder the old tax law, C Corporations with average gross receipts of $5 million or more over the previous three tax years weren’t able to use the cash method. The new tax legislation raises the threshold to $25 million, which will allow many more C corporations to use the cash method instead of having to use the more complex accrual method. This also applies to partnerships and LLCs that have C Corporations as owners.
*Kiplinger Tax Letter