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What is a Section 481(a) adjustment?

US tax filing

The one-off correction that prevents income being counted twice or missed entirely when you change accounting method. It captures the cumulative difference as of the change date.

A negative adjustment is generally taken in full in the year of change; a positive one is usually spread across four years. More on Form 3115.

Inkle Tax prepares and files US federal and state returns for your company.

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