Skip to main content

How to find out whether I am under accrual or cash basis on my 1120S tax return?

Malden, MA |

How to find out whether I am under accrual or cash basis on my 1120S tax return?

Attorney Answers 2


  1. If you do not know what accounting method is used for your taxes, you should consult the person who files your tax returns on your behalf as the selected accounting method is the one that has been used for all other tax returns unless you requested to change that method by filing a form for that request with the IRS.

    Please be sure to mark if you find the answer "helpful" or a "best" answer. (It lets us know how we are doing.) Attorney Kremer is licensed to practice in Massachusetts. Please visit her Avvo profile for contact information. In accordance with Avvo guidelines, the following disclaimer applies to all responses given in this forum: The above is NOT legal advice, and is NOT intended to be legal advice. No Attorney-Client relationship is created through the above answer.


  2. See Schedule B, Line 1 which asks youto identify your accounting method. However, from time to time, the answer does not reflect the reality. So, have an experienced tax professional take a look at your return. Obviously, asking the preparer, as the previous attorney suggested, is the first person I would ask.

    Marty Davidoff, emd@taxattorneycpa.com, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.