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Accrual

Accrue federal and state income tax

To prepare financial statements, Corporations normally record Federal and State income tax on their books throughout the year. The amount of Federal and/or State income tax recorded can only be an estimate, because the actual tax liability isn't known until the tax return is prepared after the close of the year. This discrepancy between the amount of tax recorded on the books and the actual tax liability requires that an accrual adjustment be made to accurately prepare the tax return and adjust the books. The final step to completing this return is to calculate the Federal and State tax accrual adjustment.
Do the following to accrue income tax.
  1. Go to the
    TaxAc1
     screen, located in the
    TaxAcc
     folder, and complete the fields.
  2. To enter State expense per books and to select the option for the selected state, use the
    TaxAc1
    ,
    TaxAc2
    ,
    TaxAc3
    , and
    TaxAc4
     screens.
  3. Select
    File
     then
    Preview
    .
    UltraTax CS calculates the state tax accrual adjustment only when you preview the tax return or close data entry. Therefore, if you change any amounts before or after you calculate the state tax accrual, you'll need to preview the return or close data entry in order to get the new results.
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