§ 11-1905 Accounting periods and methods.
AC § 11-1905
(a)Accounting periods. A taxpayer's taxable year under this chapter shall be the same as his or her taxable year for federal income tax purposes.
(b)Change of accounting periods. If a taxpayer's taxable year is changed for federal income tax purposes, his or her taxable year for purposes of this chapter shall be similarly changed. If a taxable period of less than twelve months results from a change of taxable year, the exclusion allowable under section 11-1902 of this subchapter shall be prorated under regulations of the commissioner.
(c)Accounting methods. A taxpayer's method of accounting under this chapter shall be the same as his or her method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, net earnings from self-employment within the city shall be computed under such method as in the opinion of the commissioner clearly reflects net earnings from self-employment within the city.
(d)Change of accounting methods.
(1)If a taxpayer's method of accounting is changed for federal income tax purposes, his or her 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, beginning after July first, nineteen hundred sixty-six, not in excess of two, 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.
