59-10-125. Adjustment after change of accounting method.
(1) If a taxpayer's method of accounting is changed, other than from an accrual to an
installment method, any additional tax that results from adjustments determined to be necessary
solely by reason of the change may not be greater than if those adjustments were ratably allocated
and included for the taxable year of the change and the preceding taxable years, not in excess of
two, during which the taxpayer used the method of accounting from which the change is made.
(2) If a taxpayer's method of accounting is changed from an accrual to an installment
method, any additional tax for the taxable year of the change in the method of accounting and for
any subsequent taxable year that is attributable to the receipt of installment payments properly
accrued in a prior taxable year, shall be reduced by the portion of tax for any prior taxable year
attributable to the accrual of such installment payments, under rules prescribed by the
commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Amended by Chapter 389, 2008 General Session
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Last revised: Thursday, May 28, 2009