Comments on: Is US corporation tax payable only on profits (not gross revenue)? http://www.moneysnatchers.com/news/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/ Thu, 10 Dec 2009 09:16:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: bostonianinmo http://www.moneysnatchers.com/news/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-226 bostonianinmo Tue, 14 Oct 2008 20:39:01 +0000 http://www.moneysnatchers.com/united-states/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-226 Corporations pay Federal Income Tax on net income. The IRS rules on deductiblity of business expenses sometimes diverges from GAAP standards so it's not unusual for a corporation to have 2 sets of books, one for IRS standards and one for GAAP standards. State corporate taxes further muddle the issue with their own rules that differ from the IRS and the GAAP. Some states tax gross receipts, not net income and a few even tax both. In most cases a corporation prepares its financial statements according to GAAP standards and presents net income before taxes at the botton of the P&L sheet and then deducts the income taxes after that. The specifics of the tax levies are then explained in the annual report. Corporations pay Federal Income Tax on net income. The IRS rules on deductiblity of business expenses sometimes diverges from GAAP standards so it’s not unusual for a corporation to have 2 sets of books, one for IRS standards and one for GAAP standards.

State corporate taxes further muddle the issue with their own rules that differ from the IRS and the GAAP. Some states tax gross receipts, not net income and a few even tax both.

In most cases a corporation prepares its financial statements according to GAAP standards and presents net income before taxes at the botton of the P&L sheet and then deducts the income taxes after that. The specifics of the tax levies are then explained in the annual report.

]]> By: waggy_33 http://www.moneysnatchers.com/news/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-225 waggy_33 Tue, 14 Oct 2008 13:00:55 +0000 http://www.moneysnatchers.com/united-states/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-225 Corporations pay tax on net income to the IRS. Some states tax gross revenue of a corporation. Corporations pay tax on net income to the IRS. Some states tax gross revenue of a corporation.

]]> By: Izetriyen http://www.moneysnatchers.com/news/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-224 Izetriyen Mon, 13 Oct 2008 02:26:01 +0000 http://www.moneysnatchers.com/united-states/is-us-corporation-tax-payable-only-on-profits-not-gross-revenue/#comment-224 well it may start out as gross...then there are deductions.....then taxable income or revenue. something like that. well it may start out as gross…then there are deductions…..then taxable income or revenue. something like that.

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