LOCAL NET OPERATING LOSS (NOLS)

A Net Operating Loss (NOL) occurs when the deductions are more than the income for the year. A NOL can be carried forward to future years to offset income, thus reducing the tax liability. Because NOLs are tracked separately within jurisdictions, the Federal NOL does not flow down to the local calculation. S_NOL_SYS automatically generates a NOL when taxable income is negative. It also automatically uses NOLs when income is present.

Note: Administrators can activate State NOL automation in ONESOURCE Tax Provision.

2014.0 local net operating loss

 

Enter a separate line item for each local NOL:

1.Select the Code-Description and then Tag or Class/Sub-Class.
2.Indicate whether the item is classified as current or non-current.
3.The carryover balance, if any, is automatically pre-populated.
4.Enter the current activity amount in local currency.
5.There are fields for entering deferred adjustments and balance sheet only adjustments.
6.Click Add New to create the local NOL.

Notes:

•Refer to the Where to Enter Items in ONESOURCE Tax Provision section for more information on the different types of adjustments; for example, current activity, deferred only, and balance sheet only.
•If a new local NOL item is required, contact the Corporate Tax Department.

 

After a local NOL item is created, users can edit or delete the item by clicking the appropriate icon.

1.Click the pencil icon to edit the entry.
2.Select Save Changes after making any changes.

 

•Users can attach files to an individual local NOL item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item.
•Users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes.
•The impact of an individual local NOL on the tax provision can be viewed on the Local Tax Provision report.