Chapter 02 Accounting Periods
100 Every taxpayer must compute taxable income based on their tax year. A tax year is an annual accounting period used by the taxpayer for keeping records and reporting income and expenses. A tax year may be a calendar year, which is a period of twelve (12) consecutive months ending on December 31st, or a fiscal year, which is a period of twelve (12) consecutive months ending on the last day of any month except December 31st.
101 Miss. Code Ann Section 27-7-13(4) provides that if a taxpayer’s annual accounting period is not a proper fiscal year ending or if the taxpayer has no annual accounting period or does not maintain books and records that identify an accounting period, that the taxable period will be based on a calendar year.
102 S Corporations, fiduciaries and partnerships are required to file for the same period for Mississippi as for federal purposes.
103 Taxpayers required to file an individual income tax return will file using a calendar year tax period unless they have been granted permission by the Commissioner to file otherwise.
104 Pursuant to Miss. Code Ann. Section 27-7-43 a taxpayer will only be allowed to change an accounting period when it has received approval from the Commissioner. If permission is granted by the federal government to change the accounting period, then state permission is automatic provided the taxpayer attaches a copy of the written federal approval to the first state return filed for the new period. If the Commissioner determines that such change in accounting period results in an understatement of income, the Commissioner will deny the final approval.
105 When the accounting period is changed, it is required that the tax on the first return be computed by placing the income on an annual basis. The annualized income is determined by dividing the income for the period by the number of months in the short period and multiplying the result by twelve (12). The tax computed on the annualized taxable income is multiplied by the number of months in the short period and divided by twelve (12).
106 (Reserved)
35.III.1.02 revised effective September 1, 2018
Chapter 02 Accounting PeriodsMethods
100 The return of a taxpayer shall be made and the income computed for the taxable year, which means the calendar year or fiscal year, if an accounting period of 12 months ending on the last day of any month other than December has been established. The annual accounting period constituting a taxable year shall in no case be longer than 12 months.
100 Every taxpayer must compute taxable income based on their tax year. A tax year is an annual accounting period used by the taxpayer for keeping records and reporting income and expenses. A tax year may be a calendar year, which is a period of twelve (12) consecutive months ending on December 31st, or a fiscal year, which is a period of twelve (12) consecutive months ending on the last day of any month except December 31st.
101 Miss. Code Ann Section 27-7-13(4) provides that if a taxpayer’s annual accounting period is not a proper fiscal year ending or if the taxpayer has no annual accounting period or does not maintain books and records that identify an accounting period, that the taxable period will be based on a calendar year.
101 The Commissioner will not grant permission, except in the case of consolidation, to change an accounting period or method unless the taxpayer also is granted similar permission for filing federal income tax returns. If permission is granted by the federal government to change the accounting period or method of accounting, then state permission is automatic provided the taxpayer attaches a copy of the written federal approval to the first state return filed for the new period.
102 S Corporations, fiduciaries and partnerships are required to file for the same period for Mississippi as for Ffederal purposes.
103 Taxpayers required to file an individual income tax return will file using a calendar year tax period unless they have been granted permission by the Commissioner to file otherwise.
104 Pursuant to Miss. Code Ann. Section 27-7-43 a taxpayer will only be allowed to change an accounting period when it has received approval from the Commissioner. If permission is granted by the federal government to change the accounting period, then state permission is automatic provided the taxpayer attaches a copy of the written federal approval to the first state return filed for the new period. If the Commissioner determines that such change in accounting period results in an understatement of income, the Commissioner will deny the final approval. 103 (Reserved)
105200 Short Period as a Result of Change in Accounting Period—When the accounting period is changed, it is required that the tax on the first return be computed by placing the income on an annual basis. The annualized income is determined by dividing the income for the period by the number of months in the short period and multiplying the result by twelve (12). The tax computed on the annualized taxable income is multiplied by the number of months in the short period and divided by twelve (12).
106201 (Reserved)
35.III.1.02 revised effective September 1, 2018 300 Cash Method (Receipts and Disbursements) A taxpayer reporting net income on a basis of receipts and disbursements must include in gross income only actual and constructive receipts of income. Under the accrual basis, a taxpayer must include in gross income amounts received by or accrued to him. He may not deduct items of expense accrued but must wait until such accrued items are paid. This does not apply to deductions for depreciation.
301 Bad debts do not constitute a loss as such under the receipts and disbursements method. The expenses, liabilities or credits of one year cannot be used to reduce the income of a subsequent year.
302 (Reserved)
Accrual Method
400 Under the accrual basis, a taxpayer must include in gross income amounts received by or accrued to him.
401 (Reserved)