Page 89 - International Taxation IRS Training Guides

Overview

 ETR is a US Generally Accepted Accounting Principle

(“GAAP”) financial statement ratio by which investors

can evaluate a company’s performance.

• ETR = book income tax expense
pre-tax
book income
 Generally, issue teams
will review a company’s

statement income tax footnote as a part of
financial

the initial
risk analysis in an examination.

 Although no tax exam
adjustments can be proposed
simply
from reviewing the income tax footnote, issue

teams
can use the information to help develop
tax positions.
questions about a company’s

4