How Are Taxes Reflected In Interim Reports?
The income tax provision includes current and deferred taxes, both federal and local. The tax provision for an interim period should be cumulative. Example: Total tax expense for a nine-month period is shown in the third quarter based on nine-month income. The tax expense for the three-month period based on three months’ income may also be presented. For example: Third quarter tax expense based on only the third quarter.
