Chapter 11 Homework

2.  Most individuals use the calendar year as their tax year. What​ requirement, if​ any, in the tax law causes​ this?

1. There is no requirement in the tax law that requires individuals to use the calendar year as their tax year.
2. The tax law states that all taxpayers must use the calendar year as their tax​ year, no exceptions.
3. The tax year must coincide with the year used to keep books and records. Taxpayers who do not have books must use the calendar year.
4. The tax law contains incentives for taxpayers that use the calendar year as their tax year.