Tax election

A tax election is a choice made by a taxpayer among several possible options for how to deal with a situation from a tax reporting perspective. For example, a business can elect to be taxed as a C corporation or an S corporation. Another example is to keep the accounting records under the cash basis of accounting or the accrual basis. Or, a married couple can choose to file tax returns separately or with a joint return. A tax election may have consequences related to the timing and amount of taxes paid.