An accounting period is a standardized time frame for tracking and reporting a company's financial performance and tax obligations. Commonly used in financial statements, accounting periods are vital for consistency and comparison.
Business or Professional Activity Code refers to six-digit code numbers used to classify enterprises by the type of activity for the administrative purposes of the Internal Revenue Service (IRS). These codes are analogous to the North American Industry Classification System (NAICS).
A consolidated tax return combines the financial reports of companies that form an affiliated group, as defined by tax laws. This applies to firms that are at least 80% owned by a parent or another inclusive corporation.
The Double Declining Balance Method is a form of accelerated depreciation method that spreads the cost of an asset more heavily in the early years of its service life.
U.S. tax form used by payers to report various types of income other than wages, salaries, and tips. Examples include interest, dividends, royalties, capital gains, and miscellaneous income.
Organization costs are the expenditures a business incurs during its formation. These costs include legal fees, business filing fees, and franchise acquisition costs. Capitalization and amortization of organization costs are important aspects for financial and tax reporting.
The IRS W-9 form requires taxpayers to provide their Social Security number, employer identification number, or other identification to a payer, enabling the obligation of reporting interest, dividends, royalties, or other payments made to the taxpayer to the IRS.
