Accounting: - when cash payment to IRS is LESS than tax expense for GAAP/financial reporting purposes
- Create future tax income that increases taxes payable (ex. depreciation expense - can accelerate depreciation on IRS reporting)

Question

- when cash payment to IRS is LESS than tax expense for GAAP/financial reporting purposes
- Create future tax income that increases taxes payable (ex. depreciation expense - can accelerate depreciation on IRS reporting)

Thoughtful Peacock · Accepted Answer

Deferred tax liabilities

Accounting

- when cash payment to IRS is LESS than tax expense for GAAP/financial reporting purposes - Create future tax income that increases taxes payable (ex. depreciation expense - can accelerate depreciation on IRS reporting)

Deferred tax liabilities

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