Section 15 Method of Accounting

• Library: Tax Law 2009

Under § 148.040.4, RSMo 2000, net income is computed “with the method of accounting regularly employed in keeping the books of the taxpayer, unless such method does not clearly reflect the income.” The statute does not specify using any particular method, e.g., accrual or cash, only that the method “clearly reflect the income.” In Farmers & Merchants Bank & Trust Co. v....