Tax codes are used to associate accounts in a trial balance with tax return schedules and lines. Once a tax return is set up to use G/L Direct, entries or changes in the trial balance related to the tax return are made to the tax return based upon the tax schedule and line associated with the tax code.
A standard group of tax codes is provided. These are referred to as master tax codes.You can also create a custom tax code set. See Managing Custom Tax Codes Sets for more information.