Current tax expense always totals the amount a taxpayer actually paid all Federal,state,and foreign tax authorities in a particular year.

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Current tax expense is based on the tax liability calculated using the tax laws and rates applicable for a particular year, which may not necessarily be the same amount as actually paid to tax authorities. The actual amount paid is reflected in the cash flow statement, not the income statement where tax expense is reported.

Current Tax Expense Always Totals the Amount a Taxpayer Actually