Forecast

Calculating the Annualized Forecast Effective Tax Rate

•	The Forecast Pre-Tax Book Income expected for the year. Amounts can be tracked by quarter or on annual basis.

•	Statutory Tax Rates expected to be enacted by the end of the year should be populated for each unit. For state, be sure to include the expected apportionment factors for states/jurisdictions.

•	Units can be designated to be excluded from the forecasted rate calculation. On a unit-by-unit basis, you can either decide to exclude units when the unit has a loss or when the unit has either income or a loss.

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Permanent Differences, Temporary Differences - Tax Basis, After Tax Temporary Differences - Tax Basis, Tax Adjustments, NOL Temporary Differences - Tax Basis, InterCompany Transaction Entry and State: All known Annualized Book/Tax Differences that are expected to impact the effective tax rate (e.g., permanent differences, tax adjustments, and temporary differences with deferred only activity) should be entered.

•	You can populate the dataset either by entering amounts directly in the system or by using the Spreadsheet Import Numbers Template.

Determining the Basis that the Annualized Forecast Effective Tax Rate should be Applied

There are several ways to interpret the guidance in Interim. Depending on your interpretation, the Forecast Effective Tax Rate can be represented in the system either on an overall or unit-by-unit basis. The interim rate basis is selected when an interim dataset is created.

Reviewing the Annualized Forecast Effective Tax Rate

The Forecast Rate report displays the results of the entered data. The report has several views to better understand how the rate was generated.