Does it matter whether I use bank deposits or gross receipts as sales on my federal tax return?

Bank deposits and gross receipts are taken from the same the same basic information.

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Whichever one you report to the IRS, the main thing to be concerned with is that the N.M. Taxation & Revenue Dept. (TRD) compares sales reported to the IRS with total reported gross receipts (not to be confused with taxable gross receipts). Note: If bank deposits are reported to the IRS, that amount will be greater than total gross receipts because deposits include gross receipts tax. The TRD takes this discrepancy into account when they determine whether the it indicates that the business has not reported all of their gross receipts.

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Related articles

• Comparing bank deposits to gross receipts on GRT reports

• I received a GRT audit letter

• Is GRT a deductible business expense?

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