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Taxes

Accounting period

is known as Tax Year. This is typically a calendar year, but can also be a fiscal year based on the specific accounting period of a business. The concept of a tax year refers to the timeframe used by taxpayers to calculate their tax obligations. It is commonly a calendar year, but businesses may opt for a fiscal year that aligns with their accounting period. Understanding the appropriate tax year is crucial for accurate and timely tax filings. As a knowledgeable professor, it is essential to thoroughly explain this concept to ensure a clear understanding among students.
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