I’m a business owner and we file our taxes on cash basis. When do I need to file under the accrual basis?

Home » Questions » I’m a business owner and we file our taxes on cash basis. When do I need to file under the accrual basis?

Under 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

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