The Internal Revenue Service requires that a corporation must use the same depreciation method on its tax return that it uses on its annual report.

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The Internal Revenue Service (IRS) allows corporations to use different depreciation methods for tax reporting purposes (such as Modified Accelerated Cost Recovery System, or MACRS) and for financial reporting purposes (such as straight-line depreciation) on their annual reports. These methods often differ because tax regulations and financial accounting standards have different objectives.

The Internal Revenue Service Requires That a Corporation Must Use