Legislation
SECTION 5
Accounting periods and methods
General City (GCT) CHAPTER 21, ARTICLE 2-D, PART 1-6, PART 1
§ 5. Accounting periods and methods.--(a) Accounting periods.--A
taxpayer's taxable year under this local law shall be the same as his
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 taxable year for purposes
of this local law shall be similarly changed. If a taxable year of less
than twelve months results from a change of taxable year, the city
standard deduction, and the city personal exemptions shall be prorated
under regulations of the administrator.
(c) Accounting methods.--A taxpayer's method of accounting under this
local law shall be the same as his method of accounting for federal
income tax purposes. In the absence of any method of accounting for
federal income tax purposes, city taxable income shall be computed under
such method as in the opinion of the administrator clearly reflects
income.
(d) Change of accounting methods.--(1) If a taxpayer's method of
accounting is changed for federal income tax purposes, his method of
accounting for purposes of this local law 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 administrator.
taxpayer's taxable year under this local law shall be the same as his
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 taxable year for purposes
of this local law shall be similarly changed. If a taxable year of less
than twelve months results from a change of taxable year, the city
standard deduction, and the city personal exemptions shall be prorated
under regulations of the administrator.
(c) Accounting methods.--A taxpayer's method of accounting under this
local law shall be the same as his method of accounting for federal
income tax purposes. In the absence of any method of accounting for
federal income tax purposes, city taxable income shall be computed under
such method as in the opinion of the administrator clearly reflects
income.
(d) Change of accounting methods.--(1) If a taxpayer's method of
accounting is changed for federal income tax purposes, his method of
accounting for purposes of this local law 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 administrator.