Project One

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School

Southern New Hampshire University *

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Course

655

Subject

Accounting

Date

Apr 3, 2024

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docx

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Uploaded by berkheiserkailyn

Project One Kailyn Berkheiser Tax 655 SNHU

2 To make sure there were no math mistakes or problems with the data in Form 1120, I carefully went over all of the entries, formulas, and supporting documents. I compared the information on Form 1120 to the financial statements, trial balances, and other source papers to make sure it matched up with what was written there (Anderson et al., 2023) . It was important to me that I followed the tax laws and rules properly, so I went over them again. This meant checking the form for any updates or changes to tax rules that could affect how accurate it was. When it came to the business, I looked at how different tax laws and rules applied. I focused on the parts that were important to the business because some rules might not apply to certain types of income, discounts, or credits. The rules and laws about taxes can change all the time. I checked to see what the most recent changes were to the tax rules that could affect how much the business owed in taxes. This helped keep mistakes from happening and made sure that rules were followed. Case law and IRS guidance helped me figure out how to correctly read complicated parts of the tax code in a way that met IRS expectations. To make sure Form 1120 was correct, this had to be done. Temporary differences in time that could cause differences between taxable and book income were found (Anderson et al., 2023) . Tax and financial accounting might treat these differences differently, which could mean that costs or income are recorded in different ways. Besides temporary differences that wouldn't go away over time, I also thought about permanent differences. Usually, these are things that aren't tax-deductible but show up as income in the books, or vice versa. The differences between the two income numbers on Schedule M-1 led me to make the required changes. It was necessary to do this in order to give the IRS correct

3 information about the taxable income. It occurred to me that tax accounting and financial accounting often need to use different dates for when adjustments are made. As an example, the timeline for tax-related depreciation deductions may be different. In order to figure out temporary differences, I added up the deferred tax assets and liabilities. These show possible future tax effects that could change the company's tax obligations in later years. There are two types of differences: book differences and tax differences. Book differences are differences in how income is reported in financial accounting, while tax differences are differences in gross income for tax reasons (Anderson et al., 2023) . To figure out how to handle these differences in Form 1120, this difference was very important. While following the rules in the tax code, I made sure that the book-to-tax adjustments were made properly and reported. For these changes, the right paperwork and support were kept. Detail-oriented work, double-checking for correctness, and staying up to date on tax laws and rules were all needed to fill out Form 1120. Equalizing differences in income and timing was also necessary to make sure the form truly showed the company's taxable income.

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4 Resources 2023 instructions for Form 1120 - Internal Revenue Service. (n.d.-a). https://www.irs.gov/pub/irs-pdf/i1120.pdf Anderson, K., Hulse, D., & Rupert, T. (2023). Pearson’s Federal Taxation 2023 Corporations, Partnerships, Estates and Trusts . Pearson.