maglib
Level 10

Get your taxes done using TurboTax

I would send the explanation statement.  It's simpler and the correct thing to do. Why should you be burdened and have to deal with rolling funds and more accounting and tax prep because of it?  I would write a letter to their head of audit with a simple explanation that they are not accounting on a cash basis for individuals.
**I don't work for TT. Just trying to help. All the best.
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I am NOT an expert and you should confirm with a tax expert.