Accounting question re tax refund

[Michael DeBusk]

Bob Williams wrote:

> Could I make a request that replies are always posted to the list?

I was one who replied privately. I'm still not used to the way this list
is set up for response; it was inadvertent. Here's my response:

Your tax refund is definitely not income, and if it were, it would be
LAST YEAR'S income. If you like to close your books at the end of the
year, this matters.

I have an asset account, "Assets:Taxes Overpaid", and a liabilities
account, "Liabilities:Taxes Owed". As soon as I completed my tax returns
for last year, I debited "Assets:Taxes Overpaid" and credited
"Expenses:Taxes:Federal", dating the transaction 2007-12-31. Then I
could close out 2007. When I received my refund, I credited
"Assets:Taxes Overpaid" and debited my checking account.

These are the only times I use the accrual model.

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