What's driving the volatility in IP's income tax expenses?

International Paper's (IP) income tax expenses have experienced a significant negative variance, with a reported -$78 million for the latest quarter ending December 31, 2024. This decline is a result of several factors: |code|Ticker|Name|Date|Income Taxes|Income Taxes YoY|market_code| |---|---|---|---|---|---|---| |IP|IP.N|International Paper|2024 Q1|2.7E7|-43.75|169| |IP|IP.N|International Paper|2024 Q2|-2.93E8|-987.8787878787879|169| |IP|IP.N|International Paper|2024 Q3|-7.1E7|-282.05128205128204|169| |IP|IP.N|International Paper|2024 Q4|-7.8E7|-27.86885245901639|169| 1. **Geopolitical Risks**: International Paper operates in a global environment with various geopolitical risks. These risks can lead to fluctuations in tax expenses as the company adjusts its operations to comply with different tax regimes and mitigate potential tax liabilities. 2. **Operational Changes**: The company has been focusing on international business and cybersecurity initiatives to drive growth. These strategic shifts can impact tax expenses as they affect the company's global tax structure and the recognition of taxable income. In summary, the volatility in International Paper's income tax expenses is primarily driven by geopolitical risks and operational changes. These factors create an environment where tax expenses can fluctuate significantly, impacting the company's financial performance.