Book income tax expense could equal current taxes payable to the IRS plus the increase in deferred tax liabilities minus the increase in deferred tax assets.

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Book income tax expense is calculated as the sum of current taxes payable to the IRS and the net change in deferred tax balances, which is the increase in deferred tax liabilities minus the increase in deferred tax assets.

Book Income Tax Expense Could Equal Current Taxes Payable to the IRS