Businesses must file tax returns that comply with tax regulations and rules developed by the Internal Revenue Service (IRS). The amounts presented in taxable income and financial income differ. These amounts are different because financial products are based on Generally Accepted Accounting Principles (GAAP) which uses the accrual method of reporting income. In contrast, taxable income, which is determined by IRS rules and regulations, follows a modified cash basis for determining income. Therefore, it can be seen that these amounts differ due to differences between tax regulations and GAAP. The majority of financial advisors do not have formal training in accounting or taxation and therefore have some challenges to overcome when reading their clients' tax returns. However, they are still required to assist their clients in future planning. Since most accounting should be done based on compliance with GAAP, it would be logical to think that tax accounting should also be done this way. However, the IRS and the courts have said that compliance with GAAP is of little importance when it comes to meeting targets. tax accounting. The objectives of the two accounting methods are simply different because the main objective of financial accounting is to provide useful information to all stakeholders and the main objective of the income tax system is the fair collection of revenue . Due to these differences, it can be said that the users of accounting information are different for the two methods. The assumption of financial accounting is that of going concern and the tax accounting system ignores this assumption. These differences give us the notion of temporal differences and permanent differences. Understanding... middle of article... Business & Economics Research, 10(3), 149-156.DHALIWAL, DS, GLEASON, CA, & MILLS, LF (2004). Last chance profit management: using tax expenditure to meet analysts' forecasts. Contemporary Accounting Research, 21(2), 431-459.Donal E. Kieso, Wegandt J. Jerry, Warfield D. Terry. (2012). Intermediate accounting. Hoboken, NJ: Wiley. Harrington C., Smith W., and Trippeer D. (2012). Deferred tax assets and liabilities: tax benefits, obligations and corporate debt policy. Journal of Finance & Accountancy, 1172-89.JACKSON, SB, SHOEMAKER, PA, BARRICK, JA and BURTON, F. (2005). Taxpayer prepayment positions and tax preparation costs. Contemporary Accounting Research, 22(2), 409-447.Laux, RC (2013). The association between deferred tax assets and liabilities and future tax payments. Accounting Review, 88(4), 1357-1383. doi: 10.2308/accr-50417