Companies record both income tax expense and income tax payable in journal entries. For companies that use the cash basis for both financial and tax reporting, income tax expense equals income tax ...

The accounting rules that you follow when reporting financial results are often different from the rules you follow when preparing income taxes for your business. As a result, the amount of tax you ...

Corporations report their total cash payments of income tax — federal, state, and foreign combined — but they don't identify, nor does the IRS reveal, how much federal income tax they pay. We believe, ...

Business expenses are the ordinary and necessary costs required to run a business. Any money spent in the name of doing ...