Deferred Income Taxes

Deferred Income Taxes - Deferred Income Taxes

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Deferred Income Taxes Many companies report different amounts of income on their income statement and on  their income tax return. This difference occurs because the definition of income is not  the same under GAAP (generally accepted accounting principles) and federal income  tax regulations. GAAP requires income tax expense to be calculated on income before  taxes on the income statement while the tax return calculates taxes due based on  taxable income per the income tax return.
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