Federal tax expense account

Hello there, ABHandshake. Let me share some information about Federal Tax Expenses in QuickBooks Online (QBO).

A federal tax expense account is in line with a liability account that can be viewed in a Balance Sheet report. That is why you can't see it in the Profit and Loss (P&L) or income statement. A Balance Sheet is a significant financial statement that lists a business's assets, liabilities, and equity. 

If your accountant recommended showing this in the P&L report, I suggest editing the account type to an expense. In this manner, the account will show in the P&L report. 

Here's how you can edit an account: 

1. Go to the Transactions tab and select Chart of Accounts.
2. Locate the specific account you'd like to edit.
3. Click on the dropdown arrow under the Action column and select Edit.
4. Change the desired Account Type from the dropdown menu.
5. Click Save and Close.

Furthermore, you can check out this article to learn how to view a snapshot of your business: Run reports in QuickBooks Online.

Don't hesitate to leave a comment if you have further questions regarding the Income and Expenses account or other QuickBooks-related concerns. I'll be happy to assist. Have a great day.

@ABHandshake 

Obviously, ignore @CarlSJ's response of "A federal tax expense account is in line with a liability account that can be viewed in a Balance Sheet report. That is why you can't see it in the Profit and Loss (P&L) or income statement."  It is an uninformed response, and cringeworthy

Unfortunately, there is no way in QB to format the P&L for a C-Corp as you would like.   

Thank you for your comments.

In our situation we think that the following journal entry will accurately reflect our situation when we have calculated an income tax, but we have not made payments yet.

Debit - Accrued income tax expense (Income Statement)

Credit - Income tax liability (Balance Sheet)

Is there a way how we can do this in Quickbooks?