NAC706.786. Account for accrued taxes and licenses.

     1. The account for accrued taxes and licenses must be credited with the amount of taxes accrued during the accounting period, except for payroll taxes and federal income taxes. See subsection 1 of NAC 706.783 and NAC 706.801, respectively. Corresponding debits must be made to the appropriate accounts for the charges. See subsection 11 of NAC 706.816 and NAC 706.828. Such credits may be based on estimates, but from time to time during the year as the facts become known, the amount of the periodic credits must be adjusted to include as nearly as can be determined in each year the applicable taxes.

     2. If accruals for taxes are found to be insufficient or excessive, corrections must be made through current tax accruals. Accruals for taxes must be based upon the net amounts payable after credit for any discounts and must not include any amounts for interest on the deficiencies or refunds. Interest received on refunds must be credited to the account for interest earned described in subsection 1 of NAC 706.849 and interest paid on deficiencies must be charged to the account for interest expense described in subsection 1 of NAC 706.852. Penalties must be charged to the account for miscellaneous other expenses described in subsection 4 of NAC 706.852.

     3. The records supporting the entries to this account must be kept to show for each class of taxes included, the amount accrued, the basis for the accrual, the accounts charged and the amount of tax paid.

     [Taxicab Auth., Uniform System of Accounts Reg. § 322, eff. 12-24-70; A 11-16-79]