form-1120-cash-basis-reconciliation

name	form-1120-cash-basis-reconciliation
description	Reconcile multiple source documents (invoices, expense sheets, bank statements) to establish authoritative cash-basis revenue and expenses for Form 1120 C-Corp filing
version	1.0.0
source	auto-extracted
extracted	"2026-04-14T00:00:00.000Z"
metadata	{"tags":["tax","form-1120","reconciliation","cash-basis","accounting"]}

Form 1120 Cash-Basis Revenue & Expense Reconciliation

When multiple source documents conflict (invoice dates vs. bank deposits, expense ledgers vs. bank statements), establish a single authoritative source — typically the expense sheet derived from actual bank activity, since cash-method corporations report when cash lands in the account, not when invoiced. Map each line item from the authoritative expense sheet directly to Form 1120 line items, flagging book-tax differences (like imputed interest under §7872). Verify Schedule L beginning-of-year balances against prior returns or reconstruct from entity formation records.