The amount owed the IRS is recorded in the accounting records in which account?

Question

Quizplus · Accepted Answer

The amount owed to the IRS is considered a liability and is recorded in the Income Tax Liability account. Option A, Income Tax Expense, would be used to record the actual taxes owed for the current period, while options C and D, Deferred Tax Expense and Deferred Tax Liability, are used for future tax payments or refunds related to temporary differences in accounting treatment.

The Amount Owed the IRS Is Recorded in the Accounting