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§ 367.103 - Accounts 409.1, 409.2, and 409.3, Income taxes.

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These accounts must include the amounts of local, state and Federal income taxes on income properly accruable during the period covered by the income statement to meet the actual liability for such taxes. Concurrent credits for the tax accruals must be made to account 236, Taxes accrued (§ 367.2360), and as the exact amounts of taxes become known, the current tax accruals must be adjusted by charges or credits to these accounts, so that these accounts include the actual taxes payable by the service company.

The accruals for income taxes shall be apportioned to Operating Income, Other Income and Deductions, and Extraordinary Items so that, as nearly as practicable, each tax will be included in the appropriate account based on the income which gave rise to the tax.

Taxes assumed by the service company on interest must be charged to account 431, Other interest expense (§ 367.4310).

Interest on tax refunds or deficiencies must not be included in these accounts but in account 419, Interest and dividend income (§ 367.4190), or account 431, Other interest expense (§ 367.4310), as appropriate.

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§ 367.102 - Accounts 408.1 and 408.2, Taxes other than income taxes.
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§ 367.104 - Accounts 410.1, 410.2, 411.1, and 411.2, Provision for deferred income taxes.