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Chapter-1Introduction to Tax Accounting Purpose of Tax Accounting: The primary purpose of tax accounting is to determine taxable income, preparation of federal state income tax returns, planning of operations along lines that will hold As income tax (IT) rates have gone up the determination of Taxable income has become more complex, both internal accountants independent public accountants have devoted more time to problems of taxation. Although many companies rely on CPA firms for tax planning the preparation of IT returns, larger companies also maintain their own tax departments. Meani