This paper comprehensively reviews the Accounting for Income Taxes (AFIT) literature. We
begin by identifying four distinctive aspects of AFIT and briefly covering the rules …

Using a new measure of financial constraints based on firms' qualitative disclosures, we find
that financially constrained firms—firms that use more negative words in their annual reports …

We investigate why temporary book-tax differences appear to serve as a useful signal of
earnings persistence. We first test and show that temporary book-tax differences provide …

Effective tax rates (ETRs) are often used to compare tax avoidance across firms and time.
Using firms' detailed tax footnote data, we find that the effect of valuation allowances (VA) …

We investigate whether book-tax differences are associated with higher audit fees, a proxy
for auditor risk assessments and auditor effort. Our evidence suggests that there is a …

This paper examines the relative valuation of alternative methods of tax avoidance. Prior
studies find that firm value is positively associated with overall tax avoidance; I provide …

Prior studies document that book-tax differences (BTDs) reflect divergent reporting rules for
book and tax purposes, and contain information about earnings management and tax …

Due to the proprietary nature of tax returns, the tax footnote is the primary source of
information for stakeholders about a firm's tax position. However, studies suggest the tax …

Academic researchers and policy activists have used the difference between accounting
income and estimated taxable income, commonly referred to as the book-tax difference …

We investigate whether management's decision regarding the recognition of the valuation
allowance (VA) for deferred tax assets provides incremental information about the …