if private companies don’t have to prepare quarterly income tax provisions, but want to accrue income tax on a monthly basis, is it okay to just use estimated taxes for the monthly accrual or do you have to do an ASC 740 compliant quarterly calc.

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Technically you should be forecasting your ETR for the year before Q1 ends and apply that ETR minus extraordinary items. And then apply any extra ordinary items ontop.

It would be more accurate than you estimating it each Q. Not like a fully blown provision for a private company would’ve that complicated.

You can do it however you want and just make an entry at YE to true up to the tax provision.

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