Why would a company be interested in documenting the book-tax differences to identify potential items of interest to the IRS?

Tax-book differences are generally used as an indicator of how well a company is avoiding paying taxes. While there might be a good set of permanent differences, it has been shown in the academic literature to be a reasonably good indicator of how well the company has engaged in tax planning to avoid the payment of taxes.Tax-book differences are generally used as an indicator of how well a company is avoiding paying taxes. While there might be a good set of permanent differences, it has been shown in the academic literature to be a reasonably good indicator of how well the company has engaged in tax planning to avoid the payment of taxes.