The IRS decides upon audit whether the taxpayer can claim the tax deferral benefits of ASC 740-30.

Question

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The taxpayer must determine whether they qualify for tax deferral benefits under ASC 740-30 and must disclose this information in their financial statements. The IRS does not make this determination during an audit; they may examine the taxpayer's compliance with the requirements of the tax law and the accuracy of the taxpayer's financial statement disclosures.

The IRS Decides Upon Audit Whether the Taxpayer Can Claim