26 USC 446 - General rule for methods of accounting

U.S Code last checked for updates: Nov 23, 2024

§ 446.

General rule for methods of accounting

(a)

General rule

(b)

Exceptions

(c)

Permissible methods

Subject to the provisions of subsections (a) and (b), a taxpayer may compute taxable income under any of the following methods of accounting—

(1)

the cash receipts and disbursements method;

(2)

an accrual method;

(3)

any other method permitted by this chapter; or

(4)

any combination of the foregoing methods permitted under regulations prescribed by the Secretary.

(d)

Taxpayer engaged in more than one business

(e)

Requirement respecting change of accounting method

(f)

Failure to request change of method of accounting

If the taxpayer does not file with the Secretary a request to change the method of accounting, the absence of the consent of the Secretary to a change in the method of accounting shall not be taken into account—

(1)

to prevent the imposition of any penalty, or the addition of any amount to tax, under this title, or

(2)

to diminish the amount of such penalty or addition to tax.

(Aug. 16, 1954, ch. 736, 68A Stat. 151; Pub. L. 94–455, title XIX, § 1906 (b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title I, § 161(a), July 18, 1984, 98 Stat. 696.)

cite as: 26 USC 446