§ 44-30-4 - Accounting periods and methods. - Rhode Island Statutes

SECTION 44-30-4

   § 44-30-4  Accounting periods and methods.– (a) Accounting periods. A taxpayer's taxable year for the Rhode Islandpersonal income tax shall be the same as his or her taxable year for federalincome tax purposes.

   (b) Change of accounting periods. If a taxpayer'staxable year is changed for federal income tax purposes, his or her taxableyear for Rhode Island personal income tax purposes shall be similarly changed.

   (c) Accounting methods. A taxpayer's method ofaccounting for Rhode Island personal income tax purposes shall be the same ashis or her method of accounting for federal income tax purposes. In the absenceof any method of accounting for federal income tax purposes, Rhode Islandtaxable income shall be computed under any method that the tax administratorshall determine clearly reflects income.

   (1) If a taxpayer's method of accounting is changed forfederal income tax purposes, his or her method of accounting for Rhode Islandpersonal income tax purposes shall be similarly changed.

   (2) If a taxpayer's method of accounting is changed from anaccrual to an installment method, any additional tax for the year of the changeof method and for any subsequent year which is attributable to the receipt ofinstallment payments properly accrued in a prior year, shall be reduced by theportion of tax for any prior taxable year attributable to the accrual of theinstallment payments, in accordance with regulations of the tax administrator.