Publication 538 states that if you did not start your business using the 12-month rule then you cannot change your Accounting Method without IRS approval. I know you have operated at least in 2020 as well, from your other post I helped you on. So, even if you did not have any multi-year expenses before, you have already reported you are reporting on the Cash Method (plus you started this thread with that information). Electing the 12-month rule makes you an Accrual Method business and requires IRS approval for the change in method.
You do not want that hassle! So, the proper treatment of your website renewal, is to report the cash you paid in full in 2021.
@confusedabouttaxes23
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
