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TeachMeFinance.com - explain Deferred income tax (liability) Deferred income tax (liability) The term 'Deferred income tax (liability)' as it applies to the area of energy can be defined as ' A liability in the balance sheet representing the additional Federal income taxes that would have been due if a utility had not been allowed to compute tax expenses differently for income tax reporting purposes than for ratemaking purposes'. Previous 5 Terms: defects Defense Meteorological Satellite Program (DMSP) Defense-in-depth Deferred cost Deferred fuel costs Next 5 Terms: Deferred pricing Deficiency (Nursing Home) Deficiency payments Deficiency Verification Analysis (DVA) Deflagration About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.