Question: Dr. Randolph, a cash basis taxpayer, knows that she will be in a lower marginal tax bracket next year. To take advantage of the expected
Dr. Randolph, a cash basis taxpayer, knows that she will be in a lower marginal tax bracket next year. To take advantage of the expected decrease in the marginal tax rate, Randolph instructs her office manager to delay filing the medical insurance claims for services performed in November and December until January of the following year. This will ensure that the receipts will not be included in current gross income. Is Randolph abusing the cash method of accounting rules? Why or why not?
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