Accounting for income taxes: Book vs. tax basis differences

This whitepaper is the first in a series of whitepapers to be used as a resource in understanding and analyzing the accounting for income taxes under FASB Accounting Standards Codification (ASC) 740, Income Taxes. This whitepaper addresses how to identify temporary and permanent differences and net operating loss and tax credit carryforwards, which is one of the many aspects of accounting for income taxes. This whitepaper does not address every aspect of accounting for income taxes and should therefore be read in conjunction with ASC 740, Income Taxes.

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This article was written by RSM US LLP and originally appeared on 2023-12-12.
2022 RSM US LLP. All rights reserved.
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The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

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