I have recently begun doing the 1120 for a C Corp.
As I understand it, the Federal Taxes Paid for the Corporation are not deductible for tax purposes.
1) Is that correct?2) Since we have to list the balance sheet and changes in Retained Earnings from the beginning to the end of the year = Profit (Loss), I am wondering how the taxes paid are accounted for, if they are not deductible, so that the balance sheet is correct and the profit/loss is correct.
Can anyone explain this to me?
3) I assume that state excise taxes are deductible for federal tax purposes.thanks for any help,
fran
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