Most individual taxpayers are on a calendar year for tax purposes – and that just wrapped up on December 31, 2006. Business taxpayers, however, may elect to choose their own tax year if there is a business purpose for the election. So, today’s Fix the Tax Code Friday question is:
Should individual taxpayers be allowed to choose their own tax year?
No. Enabling businesses to choose their own tax year works well enough…no need to muddy the waters with even more compliance issues.