I went to a discussion group yesterday, and this one lady was adamant that you can't use accrual accounting for tax purposes with an S Corporation because individuals who are shareholders are on the cash basis.
I looked it up, and I don't see any problem with it. Does anyone out there know otherwise?
And if there is not a problem, then if you pay the CA PEET tax in 2022 for 2021, shouldn't a corporation be allowed to accrue that tax owed on the 2021 Form 1120S and get a federal deduction for it?
Comments appreciated.