True Up to Return (RTP)

Tax returns for the prior year are typically filed in the current year. Once returns have been filed, a true-up must be booked for the difference between what was accrued in the prior year's provision and the actual amount on tax returns. This true-up must be booked in the current year's provision.

There are several approaches to representing true-up adjustments. Depending on how the true-up should be represented in the current year's provision, the true-up can be entered using a single dataset or a multiple dataset approach.