where do taxes go on a cash flow statement
Cash flow statement The direct method for creating a cash flow statement reports major classes of gross cash receipts and payments. Under IAS 7, dividends received may be reported under operating activities or under investing activities. If taxes paid are directly linked to operating activities, they are reported under operating activities; if the taxes are directly linked to investing activities or financing activities, they are reported under investing or financing activities. Generally Accepted Accounting Principles (GAAP) vary from International Financial Reporting Standards in that under GAAP rules, dividends received from a company's investing activities is reported as an "operating activity," not an "investing activity."[13]
Internal Revenue Service The IRS originated with the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax, which was to raise funds for the American Civil War. The temporary measure provided over a fifth of the Union's war expenses and was allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified authorizing Congress to impose a tax on income, and the Bureau of Internal Revenue was established. In the 1950s, the agency was renamed the Internal Revenue Service and significantly reorganized. The Tax Reform Act of 1986 modernized the IRS and restructured it along a private sector model.