Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 68-83

1968-1 C.B. 190

Full Text

Rev. Rul. 68-83 /1/

The taxpayer, a national bank, has been keeping its books and filing its Federal income tax returns on the cash receipts and disbursements method. In order to facilitate compliance with Part 18 of the Banking Regulations (12 CFR, Part 18) which requires the taxpayer to prepare its financial statements on the accrual method, the taxpayer changed to the accrual method for book purposes.

Held , the taxpayer should continue to file its Federal income tax returns on the cash receipts and disbursements method. However, the permanent books and records must clearly reflect a proper reconciliation between the accrual method and the cash receipts and disbursements method used for filing its Federal income tax returns.

If the taxpayer desires to change its overall method of accounting, for Federal income tax purposes, it may do so by filing Form 3115, Application for Change in Accounting Method, within the first ninety days of the taxable year in which the taxpayer desires to make the change.

/1/ Also released as Technical Information Release 966, dated January 30, 1968.