Introduction

You must use an accounting method that clearly shows the income and expenses used to figure your taxable income. You must also file an income tax return for an annual accounting period called a “tax year.”

This chapter discusses accounting methods. For information on accounting periods, see Pub. 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year.

Topics This chapter discusses:

• Cash method

• Accrual method

• Farm inventory

• Special methods of accounting

• Changes in methods of accounting

Useful Items You may want to see:

Publication

538

538 Accounting Periods and Methods

Form (and Instructions)

1128

3115

1128 Application To Adopt, Change, or Retain a Tax Year

3115 Application for Change in Accounting Method

See How To Get Tax Help for information about getting publications and forms.