099 Income Taxes – Current Year
Adjustments
Synopsis
Account 099, Income Taxes – Current Year, is established to record the amount of Income Tax or estimated Income Tax due for Federal, State and/or Local Income Taxes. Professional tax and accounting advice should be obtained regarding the proper handling of Income Taxes due.
Debits |
Credits |
|
|
Example 1
Record the monthly accrual of $93,750 for the federal and state income taxes.
Journal: Standard Entries Journal
Entry: |
|
Debit |
Credit |
Account 099 |
Income Taxes – Current Year |
$93,750 |
|
Account 327 |
Income Taxes Payable |
|
$93,750 |
Comments
An accrual should be set up by crediting Account 327 Income Taxes Payable with the estimated Income Taxes due. The offsetting debit is posted to Account 099, Income Taxes – Current Year.
Note:
Quarterly payment and filing dates should be observed to avoid penalties and interest.