Cash / Accrual & CPA's Retiring

[dascpa]

New biz client. Tax return reports cash basis but they've actually been using the accrual basis. If I do a 3115 it will have zero effect. Hoping someone will tell me to just change the checkbox to accrual and move on. Opinions?

In 9 days have been referred to three new business clients as their accountant is retiring (3 different accountants). One got a new girlfriend and wants to spend her money, two is ill and three just wants out.  Weird coincidence in a little over a week.

[sjrcpa]

 just change the checkbox to accrual and move on              

[IRonMaN]

I'll second that.  I'll even third and fourth it if it helps.

[Taxes-by-Rocky]

I think if you read the fine print somewhere it's the actual accounting method that the business has been using (even if wrong) that drives the bus (i.e., sets the policy - that's not to say it's an acceptable method but yours may be).....so a change to a correct/intended method might actually require approval.  Devil's in the details....see the literature.

[IRonMaN]

The bus has already been running on accrual fuel.  The fuel injectors have never tasted cash basis fuel.  There is nothing to change to --------- other than a silly little box.

[TaxGuyBill]

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@IRonMaN wrote:

I'll second that.  I'll even third and fourth it if it helps.

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I'll fifth it.  😁

If the numbers on the tax returns have always reported it in the accrual method, that is already the accounting method (despite what the check box shows), so Form 3115 does not apply.

[PATAX]

Nerdman will sixth it and Heidi will seventh it.🐕👆