Tax Only Accounts (M-1 Adjustments)
A Tax Only Account is an account that does not exist in the Accounting COA and is used to hold M-1 Tax Adjustments.
1) Create a Tax Only Account by clicking the large + icon in the Account Type header (eg Revenue, Expense, Asset, Liability, Equity)
2) You can name the Tax Only Account. The name you choose will be what is displayed on the tax return. Click the pencil icon to change the name.
You can journal to a Tax only account.
When you make a Tax Only Account, they will automatically appear in your Account Dropdown list. You can journal to them just like any other account.
If you delete a Tax Only Account that is used in an existing JE, the JE line and amount will be deleted. If this is the case, you will need to rebalance your JE’s by selecting a new account.