Accrual basis; reporting and payment

Sec. 4. (a) A taxpayer may, without prior Departmental approval report and pay his state gross retail tax on the accrual basis if:

(1) The taxpayer reports his gross income tax or the tax imposed on him in place of the gross income tax, on the accrual basis;

and

(2) The Department has not required the taxpayer to stop using the accrual basis of accounting.

(b) Definition: Accrual basis of accounting. On the accrual basis, income is accounted for as and when it is earned, whether or not it has

been collected. Expenses are deducted when they are incurred, whether or not paid in the same period.