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Chapter 4: Functionality
Forecast
Calculating the Annualized Forecasted Effective Tax Rate:
· Interim Unit Details 61 :
· The Forecasted Pre-Tax Book Income expected for the year. The amounts can be tracked
either 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, the user can either decide to exclude units when the unit has a loss or when a unit has
either income or loss.
· Perm Diffs, Temp Diffs, AT Temp Diffs, Tax Adjs, NOL Temp Diffs, InterCoTxn Entry and State:
· All known Annualized Book/Tax Differences that are expected to impact the effective tax rate
(eg: permanent differences, tax adjustments and temporary differences with deferred only
activity) should be entered.
· The dataset can be populated either by entering amounts directly in Onesource Taxstream
Provision or by using the import_numbers spreadsheet template 86 .
Determining the Basis that the Annualized Forecasted Effective Tax Rate should be applied:
· There are several ways to interpret the guidance in FIN 18 Paragraph 22. Depending on your
interpretation, the Forecasted Effective Tax Rate can be represented in Onesource Taxstream
Provision either on an Overall or Unit by Unit basis. The interim basis is chosen for the dataset
when the interim dataset 23 is created.
Reviewing the Annualized Forecasted Effective Tax Rate:
· The Forecasted Rate 96 report will display the results of the entered data. The report has several
views to best understand how the rate was generated.
© 2009 ONESOURCE TAXSTREAM PROVISION
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