How should an overpayment of estimated 2008 corporate taxes be included in an accrual-based Balance Sheet "Assets"? This is the amount that will be refunded in 2009 after tax returns are filed.
Tax Overpayment - balance sheet ?
Dec 27, 2008
2 Replies
wrote
"Income Tax Refund" as a current asset on the Balance Sheet.
You can further split it into Federal and State if you have both.
If you leave part of it to be applied to 2009, then a current asset account called something like "Estimated Income Tax Paid".
If listed as "Income Tax Refund", that suggests that the tax return has already been filed and it's just a formality for the refund to show up. I prefer the account "Prepaid Taxes" since on 12/31 work on the 1120 hasn't even been started.
ChEAr$, Harlan
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