THE TAX CUTTERY® Guide to Federal Income Taxation

by Paul D. Diaz, EA, MBA · Enrolled Agent, admitted to practice before the IRS

Glossary · IRC §481 · 26 U.S.C. §481

Section 481 Adjustments

From THE TAX CUTTERY® Guide. Principal treatment in Chapter 5: Timing and Recognition — When Tax Consequences Attach.

Section 481 Adjustments — A cumulative catch-up adjustment prevents duplication or omission of items when a taxpayer changes accounting methods. Section 481 adjustment — A cumulative reconciliation required when a taxpayer changes accounting methods, preventing items from being duplicated or omitted.

In the Guide

This section is treated in Chapter 5, Chapter 1, Chapter 4, Chapter 12. The published chapter summary is the source of the definition above. The full reasoning, citations, and worked examples are in the book.

Related in this chapter

Cite as: Diaz, Paul D. THE TAX CUTTERY® Guide to Federal Income Taxation, Professional Edition, Chapter 5: Timing and Recognition — When Tax Consequences Attach. IRC §481 (26 U.S.C. §481). taxguide.tax/irc/481

This is the glossary entry. The chapter itself is in the book. Read a free excerpt, BUY THE BOOK ($299), or get the free Letter.

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