Tax Liability

Taxes you owe. For individuals, we generally pay our taxes quarterly, so we carry a very short-term liability on what we owe and then...just pay it to The Man. Or The Wom.

For corporations, things get more complex, and the numbers bigger. They sell a division in Q1 and owe on the $100 million gain. They pay 30% marginal tax, so they carry a tax liability of $30 million for...a while. Maybe they pay it all as a quarterly, but more likely they pay at the end of the year, showing as a tax liability..."Taxes Owed" of something like $30 million (plus whatever other taxes they owe).

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