Generally Accepted Accounting Principles: Tell the IRS 1 thing and Shareholders another
GAAP Generally Accepted Accounting Principles! We love these principles because they allow companies to tell the IRS one set of numbers and shareholders a completely different set of numbers. So companies are, by law, allowed to tell the IRS they lost money and at the same time tell investors, through annual shareholder reports, that they made a TON of money.
Check out these related articles:
>The Corporate Tax-Dodge Code
>GE Breaks Law, Avoids Taxes. Gets Billions From Gov’t, Avoids Taxes. Gets White House Post — Ah, You Know The Rest.
>GE’s corporate tax bill: Zero