Sec. 17-2.1. General

Tax Law, §§ 1453(l), 1453-A, 1455(b)

(a) The accounting method or basis on which entire net income, alternative entire net income or taxable assets is to be computed must be the same as the taxpayer's method of accounting for Federal income tax purposes. However, when the Tax Commission deems it necessary in order to properly reflect the entire net income or alternative entire net income of the taxpayer, it may determine the taxable year or period in which any item of income or deduction must be included, without regard to the method of accounting used by the taxpayer. (See section 18-2.6 of this Title -Taxable year in which income or deduction is included in entire net income - and section 18-4.3 - Taxable year in which income or deduction is included in alternative entire net income.) When the Tax Commission deems it necessary in order to properly reflect the taxable assets of the taxpayer, it may determine the taxable year or period in which any adjustment to the value of an asset may be claimed, without regard to the method of accounting used by the taxpayer.

(b) In the absence of an accounting method for Federal income tax purposes, entire net income, alternative entire net income or taxable assets must be computed in accordance with the method regularly employed in keeping the books of the taxpayer, provided such method properly reflects entire net income, alternative entire net income or taxable assets. If the books of a taxpayer do not properly reflect entire net income, alternative entire net income or taxable assets or, if no books are kept, the computation of entire net income, alternative entire net income or taxable assets must be made in such manner as the Tax Commission deems necessary to properly reflect entire net income, alternative entire net income or taxable assets.