How would Schedule L of form 1120-S appear when the books are maintained on an accrual basis while the tax return is on the cash basis. Should the balance sheet reflect the cash basis (ie. no receivables or payables) or the accrual basis as per books?
S-Corp. book tax different
Dec 20, 2013
1 Replies
You mean to say that the tax return is prepared on the cash basis of accounting, but you don't have a set of books to support it? Shame on you. In today's world of software that can do everything - even some things we don't want or need - you can surely just push a button somewhere and have a complete, balanced, double-entry set of books for the corporation on the cash basis...
Is this the corporation's first year and its first 1120?
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