91 Provision for Income Taxes.
(a) Record here quarterly provisions for accruals of Federal, State, local, and foreign taxes based upon net income, computed at the normal tax and surtax rates in effect during the current accounting year. In general, this account shall reflect provisions within each period for currently accruing tax liabilities as actually or constructively computed on tax returns, and any subsequent adjustments. This account shall include credits for refund claims arising from the carryback of losses in the year in which the loss occurs, credits for the carry-forward of losses in the year to which the loss is carried, and investment tax credits in the year in which each credit is utilized to reduce the liability for income taxes.
(b) Income taxes shall be allocated among the transport entities of the air carrier, its nontransport divisions, and members of an affiliated group. Under circumstances in which income taxes are determined on a consolidated basis by an air carrier and other members of an affiliated group, the income tax expense to be recorded by the air carrier shall be the same as would result if determined for the air carrier separately for all time periods, except that the tax effect of carryback and carryforward operating losses, investment tax credits, or other tax credits generated by operations of the air carrier shall be recorded by the air carrier during the period in which applied in settlement of the taxes otherwise attributable to any member, or combination of members, of the affiliated group. Any difference between the income tax so recorded and the amount at which settlement is to be made shall be recorded in subaccount 88.1 Intercompany Transaction Adjustment—Credit or in subaccount 89.1 Intercompany Transaction Adjustment—Debit, as is appropriate.
(c) This account shall be subdivided as follows by all carrier groups:
91.1 Income Taxes Before Investment Tax Credits.
Record here accruals of income taxes based upon taxable income of the period.
91.2 Investment Tax Credits Utilized.
Record here investment tax credits utilized to reduce the accrued liability for income taxes.
[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
92 Provisions for Deferred Income Taxes.
(a) Record here income tax debits and credits deferred in accordance with the provisions of balance sheet account 2340 Deferred Income Taxes for all material timing differences.
(b) This account shall be subdivided as follows by all air carrier groups:
92.1 Current Provisions for Deferred Taxes.
92.2 Application of Taxes Deferred.
92.3 Adjustments of Deferred Taxes.
[ER-948, 41 FR 12296, Mar. 25, 1976]
93 Investment Tax Credits Deferred and Amortized.
(a) Record here investment tax credits of the current period which are transferred to balance sheet account 2345 Deferred Investment Tax Credits in accordance with the provisions of balance sheet account 2130 Accrued Taxes. This account shall also include amounts for previously deferred investment tax credits amortized during the current period.
(b) This account shall be subdivided as follows by all carrier groups:
93.1 Investment Tax Credits Deferred.
93.2 Amortization of Deferred Investment Tax Credits.
[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 39, Jan. 3, 1977]