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(QB Enterprise) Federal tax payments. What account do these go under?

Question Details:

You know, those HUGE chunks of cash that go to the IRS every year due by April 15 (yes, and/or quarterly payments).  

Does this go under EXPENSES type, is this correct? i.e.:

TAXES

   Federal

   State

   Local

or

create under "OTHER EXPENSES" type this way?  would this data be handled differently then?

I guess I am confused those huge tax payments are actual EXPENSES or not?  Not sure if that would be interfering with the current years tax liability?

 

Accepted Solution:

Federal Income taxes are not an expense but cost of doing business.  Depends on your tax type of business as to where the entry will go too.  If, Sch C will end up as Owners Drawings, Corp's etc. into Equity.  Review this with your CPA for proper entries into QB.

 

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