Income tax liabilities are the same whether calculated by tax accounting methods or by financial accounting methods.

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Income tax liabilities can differ depending on whether they are calculated by tax accounting methods or financial accounting methods. Tax accounting methods focus on determining the tax owed to the government while financial accounting methods focus on financial reporting for investors and stakeholders. Therefore, there can be differences in the timing and recognition of income, deductions, and credits between the two methods.

Income Tax Liabilities Are the Same Whether Calculated by Tax