US Laws, Codes, Statutes & Cases

 
    §  11-513  Accounting  periods  and methods. (a) Accounting periods. A
  taxpayer's taxable year under this chapter shall  be  the  same  as  the
  taxpayer's taxable year for federal income tax purposes.
    (b)  Accounting  methods. A taxpayer's method of accounting under this
  chapter shall be the same as the taxpayer's  method  of  accounting  for
  federal  income tax purposes. In the absence of any method of accounting
  for federal income tax purposes, unincorporated business taxable  income
  shall   be  computed  under  such  method  as  in  the  opinion  of  the
  commissioner of finance clearly reflects income.
    (c) Change of accounting period or method. (1) If a taxpayer's taxable
  year or method of accounting is changed for federal income tax purposes,
  the taxable year or method of accounting for purposes  of  this  chapter
  shall be similarly changed.
    (2)  If  a taxpayer's method of accounting is changed, other than from
  an accrual to an installment method, any additional  tax  which  results
  from  adjustments  determined  to  be  necessary solely by reason of the
  change shall not be  greater  than  if  such  adjustments  were  ratably
  allocated  and  included  for  the  taxable  year  of the change and the
  preceding taxable years, not in excess of two, beginning  after  January
  first,  nineteen  hundred  sixty-six, during which the taxpayer used the
  method of accounting from which the change is made.
    (3) If a taxpayer's method of accounting is changed from an accrual to
  an installment method, any additional tax for the year of such change of
  method and for any subsequent year, which is attributable to the receipt
  of installment payments properly accrued  in  a  prior  year,  shall  be
  reduced by the portion of tax for any prior taxable year attributable to
  the accrual of such installment payments, in accordance with regulations
  of the commissioner of finance.