Tax Method
/ˈtæks ˈmɛθəd/
Definitions
- (n.) The accounting approach used to determine the timing and manner in which taxable income and deductions are recognized for tax reporting purposes.
The company adopted the accrual tax method to match income and expenses accurately.
Forms
- tax method
Related terms
See also
Commentary
Choosing an appropriate tax method is crucial as it affects tax liability and compliance; legal drafters often specify allowable methods in statutes or regulations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.