Entering tax code adjustments

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Change to CS Support service hours

Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

Links to our most popular payroll tax processing topics are available in the Alerts and notices section on the right side of most pages.

For 1120, 1120S, or 1065 clients, you can create tax adjusting entries directly to a tax code from the Actions > Enter Tax Code Adjustments screen. You can also use this screen to enter tax reconciliation information - to record and reconcile differences between adjusted net income amounts and tax net income amounts.

Use the following steps to enter tax code adjustments in the Enter Tax codes Adjustments screen.

  1. Choose Actions > Enter Tax Code Adjustments.

    Note: To select a different journal entry type in the Enter Tax Code Adjustments screen, you must change it in the Actions > Enter Transactions screen.

  2. Click a tabbed page that corresponds to a line number and enter or modify detailed tax journal entry adjustment amounts that correspond to the appropriate lines in the Summary tab.
  3. Click the Other Adjustments tab to enter or modify tax journal entry adjustment amounts that are posted to tax codes of the type Revenue (INC) or Expense (EXP).

    Because these journal entries are included as tax adjustments, they affect the net income calculation. This includes the Net Income effect in the Actions > Enter Transactions screen and the year-to-date net income calculations that are displayed in the Actions > View Net Income/Loss dialog. (Tax code adjustments are only included in the balance type that includes tax journal entries.)

Notes

  • The Summary tab cannot be edited. Any additions or modifications to tax code journal entries must be made in the applicable Line detail tab.
  • The posting period defaults to the last period of the current fiscal year. All data displayed in the Line tabs and Other Adjustments tab is associated with the posting period that is selected.

Related topics

Account balance workflow and adjustments via the Trial Balance screen

Actions > Enter Tax Code Adjustments

Examples of tax code adjustment entries

Adding custom tax codes

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