The IRS requires that when LIFO is used for tax reporting,it must also be used for financial reporting.

Name: The IRS requires that when LIFO is used for tax reporting,it must also be used for financial reporting.
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This requirement is known as the LIFO conformity rule, which mandates that if a company uses the Last-In, First-Out (LIFO) method for tax purposes, it must also use LIFO for financial reporting to shareholders and creditors.

The IRS Requires That When LIFO Is Used for Tax