Solved
Is it wise to make a statement when a Contractor's Sch C Income is different from previous year due to prepaying construction costs?
I am concerned about filing my client's return with so high COG compared to income. Is it wise to make a statement explaining the timing for prepayment of construction costs? The difference will show in this next year's tax filing, showing more income than COG. Is it better to be proactive and make a statement or wait for a letter requesting more information?
