Tax Provision

The Tax Provision report for a Provision dataset displays an overview of the provision calculations. Supporting detail for some calculations can be viewed in this report, while underlying support for other items is detailed on separate reports. Selecting an amount with a hyperlink opens a supporting report. Parameters can change the view of this report. To add the parameters go to the Administration area > System > Manage Configurations > Reporting.

 

Note:

•Differing rounding policies can cause amounts on this report, as well as the Effective Tax Rate and Foreign/Domestic reports, to be out of sync by a minimal amount.
•A Deferred Provision Only adjustment can cause this report and the Deferred Balances report to be out of balance by the amount of the Deferred Provision Only Adjustment.

 

Provision Items

•Current Federal Tax Expense.
•Deferred Federal Tax Expense.
•State Tax Expense.
•Equity Offset to Current Expense.
•Total Tax Provision.
•Effective Tax Rate.

 

Report Views

•Defaults to a summarized view of report details.
•View detail: Displays available underlying detail. The view detail link no longer appears in the exported file.
•Unit breakout: On sub-consolidated and consolidated reports, details the unit-by-unit breakout. Displays on the screen or exports to an Excel file, depending on the version and parameter settings.

 

Note: Unit code columns are sorted alphabetically.

 

•Unit breakout comparison: You can create a side-by-side comparison of two datasets. The result is a total and unit-by-unit variance report. It displays on the screen or exports to an Excel file, depending on the version and parameter settings.

 

Line by Line

•Pre-Tax Book Income: Data Input > Tax Provision > PTBI.
•Deductible State Tax: Current state tax provision (from State Summary - Provision Summary) after apply each unit/state's Current Federal Deductibility rates.

 

Note: If you do not want to  take the State tax deduction, set the Federal Deductibility rate for the Current Provision to zero in the Rates/Apportionments section of the State Details screen.

•Permanent Differences: Data Input > Tax Provision > Permanent Differences and InterCompany Transaction Entry.
•Financial Taxable Income - Sum of Pre-Tax Book Income, Deductible State Tax and Permanent Differences lines.
•Temporary Differences: Data Input > Tax Provision > Temporary Differences - Tax Basis and Temporary Differences - Book/Tax Basis. Only amounts entered as Activity. Deferred Only and Balance Sheet Only entries do not impact the current tax provision calculation.
•Federal Taxable Income (Pre-NOL): Sum of Financial Taxable Income and Temporary Differences lines.
•NOL Reclass: Data Input > Tax Provision > NOL Temporary Differences - Tax Basis. Only amounts entered as Activity. Deferred Only and Balance Sheet Only entries do not impact the current tax provision calculation.
•Federal Taxable Income (Post-NOL): Sum of Taxable Income (Pre-NOL) and NOL Reclass lines.
•Unit Tax Rate: Data Input > Tax Provision > Unit Details. Only displays at the Unit reporting level.
•Federal Tax - Current: Taxable Income (Post-NOL) times the current unit tax rate(s).
•After Tax Temporary Differences: Data Input > Tax Provision > After Tax Temporary Differences - Tax Basis and After Tax Temporary Differences - Book/Tax Basis. Only amounts entered as Activity. Deferred Only and Balance Sheet Only entries do not impact the current tax provision calculation.
•Cash Tax Adjustments: Data Input > Tax Provision > Tax Adjustments. Only "cash" items with codes that do not start with NC_.
•Return Basis Provision: Sum of Federal Tax - Current, After Tax Temporary Differences and Cash Tax Adjustments.
•Non-Cash Tax Adjustments: Data Input > Tax Provision > Tax Adjustments. Only "non-cash" items with codes that start with NC_.
•Total Current Federal Provision: Sum of Cash Provision and Non-Cash Tax Adjustments.
•Begin Deferred Tax Per B/S: Deferred Balances report Total Beginning Balance column with the Fed view option.
•Bal Sheet Only Adjustment: Data Input > Tax Provision > Temporary Differences - Tax Basis, Temporary Differences - Book/Tax Basis, NOL Temporary Differences - Tax Basis times the appropriate rates plus Data Input > Tax Provision > After Tax Temporary Differences - Tax Basis and After Tax Temporary Differences - Book/Tax Basis. Only amounts entered as Balance Sheet Only entries do not impact the current tax provision calculation.
•Ending Deferred Tax Per B/S: Deferred Balances report Total Ending Balance column with the Fed view option.
•CTA: Deferred Balances report Total CTA column with Fed or Fed+FBOS and Expanded (income statement) view options.
•Deferred Provision Only: Data Input > Tax Provision > Unit Details > PTBI.
•Deferred Tax Provision: Begin Deferred Tax Per B/S plus Bal Sheet Only Adjustment minus Ending Deferred Tax Per B/S plus CTA and Deferred Provision Only lines.
•Equity Adjustment: Data Input > Tax Provision > Permanent Differences. Reversal of the impact to the current provision for Equity Adjustment Permanent.
• Differences.
•Total Federal Provision: Sum of the Total Current Provision, Deferred Tax Provision, and Equity Adjustment lines.
•Total State Provision: Total State Tax Provision (from State Summary - Provision Summary) .
•Total Tax Provision: Sum of the Total Federal Provision and Total State Provision.
•Effective Tax Rate: Total Tax Provision divided by Pre-Tax Book Income.