Ga. Comp. R. & Regs. R. 560-7-5-.02 - Accounting Periods and Basis of Net Income
(1) The return of a taxpayer shall be made
and the person's income computed for the person's taxable year, which means the
fiscal year, or the calendar year if the person has not established a fiscal
year. For purposes of this regulation, "person" means the same as is defined in
O.C.G.A. §
48-1-2. The term fiscal year means
an accounting period of 12 months ending on the last day of any month other
than December. No fiscal year will be recognized unless before its close it was
definitely established as an accounting period by the taxpayer and the books of
such taxpayer were kept in accordance therewith. A person having no such fiscal
year must make the person's return on the basis of the calendar year. The
annual accounting period constituting a taxable year shall in no case be a
period longer than 12 months.
(2)
It is recognized that no uniform method of accounting can be prescribed for all
taxpayers, and the law contemplates that each taxpayer shall adopt such forms
and systems of accounting as are in the person's judgment best suited to the
person's purpose. Each taxpayer is required by law to make a return of the
person's true income. The person must, therefore, maintain such accounting
records as will enable the person to do so.
(3) The taxable year of a person shall be the
same as the person's taxable year for Federal income tax purposes.
(4) A person's method of accounting must be
the same for Georgia income tax purposes as for Federal income tax purposes. If
the person is allowed or is required to change an accounting method for Federal
income tax purposes, such accounting method for Georgia will automatically be
changed.
Notes
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