Before you begin to book Federal Income Tax Expense, your market center must be historically profitable. This means that on the Balance Sheet, Beginning Retained Earnings plus Current Period Profit/Loss must be a positive number.
If this is a negative number, OR if your market center is historically profitable, but NOT profitable YTD (Current Period Profit/Loss is a negative number), you may not record Federal Income Tax Expense for the month.
Please refer to the Accounting Guidelines section (Addendum A) of the Policies & Guidelines Manual for detailed guidelines on this. You can find the P&G manual on mykw.kw.ocm under Resources - IALC documents.