Interperiod tax allocation refers to the allocation of income tax expense across periods when book and taxable income differ.

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Interperiod tax allocation is a process of allocating taxes due to the differences between book and taxable income in different periods. It is done to ensure that taxes are properly allocated to the appropriate accounting periods, so that financial statements provide an accurate representation of the company's financial position and results of operations.

Interperiod Tax Allocation Refers to the Allocation of Income Tax