State Tax Filing Basis For C Corporations (Cash vs Accrual)

[KAYECPA7]

The IRS Requires Filing on an Accrual Basis for Businesses that Exceed an Average of $25M in Gross Receipts for Three Years Running. Do the States Require Following the IRS Guidelines, or Have Their Own Criteria Governing the Tax Filing Basis? Is There Any One Place Where All of the State Filing Requirements Can Be Found?

[TAXNJ]

The IRS Requires Filing on an Accrual Basis for Businesses that Exceed an Average of $25M in Gross Receipts for Three Years Running. Do the States Require Following the IRS Guidelines, or Have Their Own Criteria Governing the Tax Filing Basis? Is There Any One Place Where All of the State Filing Requirements Can Be Found?

Have you looked at The TaxBook 1040 & Small Business - 2019 Tax Year Section 33 - States Business Tax Summary?

Does it help with your post?

[KAYECPA7]

Thank you for the suggestion. I did review that section for several states, but unfortunately there was nothing included there regarding the filing basis requirements. I will try searching the state websites.

[TAXNJ]

Thank you for the suggestion. I did review that section for several states, but unfortunately there was nothing included there regarding the filing basis requirements. I will try searching the state websites.

Yes. You should be able to find the particular state(s) websites in The TaxBook 1040 & Small Business - 2019 Tax Year Section 33 - States Business Tax Summary

[TaxGuyBill]

While I can't state with certainty, I can't imagine a State requiring a completely different method of reporting than the Federal return (Cash versus Accrual). It is extremely common to make adjustments to Federal, but an entirely different method of accounting doesn't make sense.

[TAXNJ]

If any interest an article about: State Tax Implications of Accounting Method Changes

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-state-tax-implications-of-accounting-method-changes-011315.pdf