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Tax accounting is a collection of accounting techniques that puts taxes before the presentation of public financial statements. The Internal Revenue Code, which establishes particular guidelines that businesses and individuals must abide by while completing their tax returns, regulates tax accounting.
Accounting for taxes is the practise of gathering accounting data that is more focused on tax calculation and reporting than it is on the presentation of public financial statements. Both individuals and corporations are required to follow precise guidelines set forth in the Revenue Code when filing tax filings. The rules for tax accounting are also governed by this legislation.
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