Where Do I Enter the Method of Accounting on a Business Return?

C Corporation return (Form 1120)

To select or enter the method of accounting in an corporate tax return, from the main menu of the return (Form 1120) select:

• Schedule K - Other Information
• Method of Accounting
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

S Corporation return (Form 1120-S)

To select or enter the method of accounting in the S corporation return, from the main menu of the return (Form 1120-S) select:

• Schedule B - Other Information
• Method of Accounting
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

Partnership return (Form 1065)

To select or enter the method of accounting in a partnership return, from the main menu of the return (Form 1065) select:

• Heading Information
• Other Categories
• Method of Accounting
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

Nonprofit return (Form 990)

To select or enter the method of accounting in a nonprofit return, from the main menu of the return (Form 990) select:

• Parts VII, IX, X, XI and XII
• Part XII - Financial Statements and Reporting
• Accounting Method
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

Nonprofit simplified return (Form 990-EZ)

To select or enter the method of accounting in the simplified non-profit return, from the main menu of the return (Form 990-EZ) select:

• Heading Information
• Other Information
• Accounting Method
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

Return of Private Foundation (Form 990-PF)

• To select or enter the method of accounting in the simplified non-profit return, from the main menu of the return (Form 990-PF) select:
• Heading Information
• Other Information
• Accounting Method
  • Cash
  • Accrual
  • Other (Specify) - If you select Other, you must enter a description in order to electronically file the return.

Additional Information:

IRS Instructions for Form 1120-S

IRS Instructions for Form 1120

IRS Instructions for Form 1065

IRS Instructions for Form 990

IRS Instructions for Form 990-EZ

IRS Instructions for Form 990-PF