A corporation must reconcile, to the IRS's satisfaction, the differences between net income as shown on the company's books and taxable income (before special deductions and net operating losses) as shown on the tax return.

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This is true. A corporation must file an income tax return and reconcile any differences between the net income on the company's books and taxable income as shown on the tax return. This is typically done through adjusting entries to ensure compliance with tax laws and regulations.

A Corporation Must Reconcile, to the IRS's Satisfaction, the Differences