A few comments:
- While you may not need to reflect a balance sheet on the tax return, personally, I think it is a good idea to maintain them.
- Based on the limited facts, I am interpreting that your 2020 tax return was correct as filed and it is really just a balance sheet presentation matter?
- If bullet 2 is accurate, then just fix the balance sheet.
- It would be best to have beginning agree to 2020 ending and just make end of the year correct.
- If that becomes too difficult, then just correct beginning so it flows as it should.
- Not a big deal if audited or you receive a letter. Easily explained and doesn't appear that any incorrect accounting errors exist based on the limited facts. Even if there were, only one year and that does not establish a method of accounting.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
