Configuration:

1.      In the accounting application -> configuration -> check the box on the cash basis.

Define the journal and the temporary tax holding account.
When the cash basis tax journal entry is posted automatically, the temporary tax holding account will balance to $0.
As the demonstration below, the journal is: Cash Basis Taxes and the account is 2225 Tax received cash basis.

2.      In the accounting application -> configuration -> taxes -> create a tax or select the existing tax.
The existing tax contains the tax type, amount, computation, and the account defined in the definition tab.

In the tax advanced options tab, select tax exigibility – Based on Payment and choose a cash basis transition account. For the demonstration purpose, a 7757 Tax – cash basis account is selected.
The cash basis transition account is to reflect the tax amount in the invoice and the cash basis taxes journal when the payment is recognized.

Workflow:

1. Create an invoice on January, 1/1/2024, $400 with 20% tax.
Notice that Odoo uses the 7757 tax–cash basis account for the 20% tax, in this case, $80.
The account is set on the tax.

P.S. The 20% tax is based on payment which means it is a cash basis tax. That is why Odoo pulled the cash basis transition account not the tax account - 251000 tax received. 

2. Register the payment on the invoice. The payment date is March, 3/11/2024.

The payment entry behaves the same as the standard payment.

3.  But once the payment is created and links to the invoice, Odoo automatically creates another journal entry in the cash basis taxes journal as below:
 
3.1 2225 Tax received cash basis (liability) account $400 credit shows 20% tag on the tax. This will be displayed in the tax report in March 2024.
P.S. 2225 is the tax temporary holding account set in the accounting configuration.
 
3.2 7757 Tax - cash basis account will be offset from the invoice. In step #1 invoice, the 7757 account has $80 in credit. Now, in the cash-based tax entry, there is $80 in the debit.
P.S 7757 is the tax transition account set in the 20% tax.
 

Tax report March 2024.