Completing the national interim tax process

Tax Provision allows you to calculate an interim provision based on an estimated annual effective income tax rate, which is then multiplied by the year-to-date pre-tax book income.

Tax Provision standard functionality provides the ability to prepare a full provision based on year to date numbers and an interim provision based on an interim approach. As with the standard provision process, automated and manual inputs to the interim tax calculation are required in local currency.

The following table outlines the ASC 740 national interim tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.