ONE SOURCE Uncertain Tax Positions

1. ONESOURCE Uncertain Tax Positions Non-Cash and Equity in the UTP App *Version 4.0+ Last Updated: v2014.0

2. Equity, Non-Cash and Income Statement • When adding a new position, you have the option of marking it as Equity, Non-Cash or Income Statement • Once a position is rolled over, you have the option to change the type of position • Positions cannot be changed from NCS to EQ or EQ to NCS

3. Uncertain Journal Entry and Calculation Support Equity Positions Tax & Other Tax amounts display in EQ: Equity Offset Line Interest & Penalties amounts display in P/L: Provision for Current/Deferred Income Taxes Non-Cash Positions All amounts display in B/S: Non-Cash Offset Line No amounts display in P/L: Provision for Current/ Deferred Income Taxes Uncertain Expense Equity Positions Only the Interest and Penalties amounts will display Non-Cash Positions No amounts will display Item Inventory Equity Positions Tax & Other Tax amounts display in Offset to Equity (Net) column Interest & Penalties amounts display in Interest & Penalties columns Non-Cash Positions All amounts display in Offset to Non-Cash (Net) column Equity and Non-Cash on Reports & Schedules

4. Impact to Tax Provision Equity Positions Current Tax amounts display in the Equity Column Interest & Penalties amounts display in Tax Expense Columns. Non-Cash Positions Current Tax, Interest & Penalties amounts display in the Non-Cash Column Income Statement Positions Current Tax, Interest & Penalties display in the Tax Expense Columns. Equity and Non-Cash on Reports & Schedules

5. Items to Note when Changing NCS/EQ Option • Dataset Merge • NCS/EQ (prior) comes from the first dataset • NCS/EQ (current) comes from the last dataset in which a position was active • If a position is NCS in the first dataset and EQ in the last dataset (or vice versa): • During the Merge, the position will retain its prior designation since the switch from NCS to EQ (and vice versa) is not permitted in the UTP App

6. Example 1: EQ to Income Statement • State Temporary Difference

7. Example 1: Calculation Support Schedule with Sample Calculation: EQ to Income Statement

8. Example 1: Uncertain Journal Entry Report with Sample Calculation: EQ to Income Statement

9. Example 1: Uncertain Expense Report with Sample Calculation: EQ to Income Statement

10. Example 2: Income Statement to EQ • Federal Permanent Difference

11. Example 2: Calculation Support Schedule with Sample Calculation: Income Statement to EQ

12. Example 2: Uncertain Journal Entry Report with Sample Calculation: Income Statement to EQ

13. Example 2: Uncertain Expense Report with Sample Calculation: Income Statement to EQ

14. Example 3: NCS to Income Statement • State Tax Adjustment

15. Example 3: Calculation Support Schedule with Sample Calculation: NCS to Income Statement

16. Example 3: Uncertain Journal Entry Report with Sample Calculation: NCS to Income Statement

17. Example 3: Uncertain Expense Report with Sample Calculation: NCS to Income Statement

18. Example 4: Income Statement to NCS • State Temporary Difference

19. Example 4: Calculation Support Schedule with Sample Calculation: Income Statement to NCS

20. Example 4: Uncertain Journal Entry Report with Sample Calculation: Income Statement to NCS

21. Example 4: Uncertain Expense Report with Sample Calculation: Income Statement to NCS