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A deferred tax valuation allowance account is used to recognize a reduction in the potential benefit due to:

User Lyudmyla
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Answer: deferred tax

Explanation: A deferred tax valuation allowance account is used to recognize a reduction in a deferred tax asset which represents the increase in taxes saved in future years as a result of a temporary deductible differences and carryforwards. This usually can result in a change in taxes payable or refundable in future periods and as a consequence, a deferred tax valuation allowance account is created if there is a greater probability that the business will not realize some portion of the asset.

User Hopeless
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