Tax installments and refunds have been entered in QB, but for the past 4 years, the corporate taxes payable were not entered. When I enter the amounts not previously recorded as 'income tax payable', it becomes a business expense and lowers net income. When I enter the amount as corporate tax payable as an adjustment, there is a double entry and the credit in the Taxes payable on the balance sheet doubles.
What I want to achieve is to reduce the corporate tax payable on the balance sheet by the amounts that were payable in prior years. All taxes due have been paid. The current balance sheet assumes corporate taxes have been paid, but no taxes were due.
