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ONE SOURCE™ UNCERTAIN TAX POSITIONS

ONE SOURCE™ UNCERTAIN TAX POSITIONS. Step by step guide to using the import templates to populate or modify the data in the UTP App. GENERAL RULES. The UTP App Import Template spreadsheet allows the user to use an Excel spreadsheet to populate or update entries in the UTP App.

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ONE SOURCE™ UNCERTAIN TAX POSITIONS

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  1. ONESOURCE™ UNCERTAIN TAX POSITIONS Step by step guide to using the import templates to populate or modify the data in the UTP App.

  2. GENERAL RULES • The UTP App Import Template spreadsheet allows the user to use an Excel spreadsheet to populate or update entries in the UTP App. • The import will begin reading the sheets in the workbook starting on row 3 and proceeding downward and will stop once it reaches a blank cell in column A. • Rows 1 & 2 are reserved for headings and descriptions. • For each row entered, be sure all the corresponding columns with a header are completed to ensure the spreadsheet is imported correctly. • Blank Import Template file (click the Excel Icon to open)

  3. IMPORT TEMPLATE The Import Template is an Excel file with four sheets that populate the following areas of the UTP App: • #UTP#:Core Data about the issue at the Endingof the period • # UTP_LIKELIHOOD#:Probability Matrix for issues at the Ending of the period • #UTP_OTHER#:Other Data about the issue at the Endingof the period • #UTP_ENTERED#:Entered Rate Table for issues at the Endingof the period • Note: These tab names can not be changed. If the tab names are altered, the import will fail.

  4. #UTP#CORE DATA The first eight columns contain the issue’s defining characteristics • Unit Code (Column A) • The unit codes must exist in Admin Center > Components > Manage: Units. (Codes are case sensitive!) • Jurisdiction (Column B) • The jurisdiction codes must exist already. (Codes are case sensitive!) • Either Pre-Defined or User Defined jurisdictions can be entered. • Year Issue Arose (Column C) • The year that the issue was (or should have been) reported on a provision or return. • The format should have 4 digits (e.g. 2007). • Dataset Year (Column D) • The year that the issue was identified for FIN 48. • The format should have 4 digits (e.g. 2007). • Type of UTP (Column E) • There are three choices: Permanent Difference, Temporary Difference or Tax Adjustment. • The code for a Perm Diff is FIN48PD. The code for a Temp Diff is FIN48TD. The code for a Tax Adj is FIN48TA. • UTP Code (Column F) • The UTP codes must exist in Admin Center > Components > Manage: Permanent Differences, Temporary Differences or Tax Adjustments. (Codes are case sensitive!) • Class (Column G) • There are two system generated choices: Statutory to Tax or GAAP to Statutory • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any user created Classes (in Admin Center) can also be entered here with the same code as in Admin Center – Classes.

  5. #UTP#CORE DATA • Subclass(Column H) • Positions that were assigned the system generated Class (G or S) should be assigned the system defined default subclass accordingly (Def-Subclass-G or Def-Subclass-S) • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any other user created subclass codes corresponding to the parent class can also be entered here

  6. #UTP#CORE DATA (cont.) Columns H, I & J contain other defining characteristics about the issue • Item Status (Column H) • The issue’s status changes through the life cycle of the item. • CIJ - Change In Judgment, NEW - New Issue, SET-F – Final Settlement, SET-NF – Partial Settlement, NLU - No Longer Uncertain, RTP - Return to Provision, EXP - Expiration of Statute, RO - Rolled Over From A Prior Period. • GL Offset (Column I) • You can mark a position as expected to settle in equity (EQ) or as a non-cash position (NCS). • Enter IS if you would choose None in the workflow for the position. • Temporary Difference Deferred Status (Column J) • This column is only applicable for Temporary Differences. • Mark whether the position is Current (C) or Non-Current (NC)

  7. #UTP#CORE DATA (cont.) Columns K, L, M, N & O contain the Resolution and Expiration Data and the answer to the More Likely Than Not (MLTN) question • Resolution Year (Column K) • The year that the issue is expected to be settled. • The format should have 4 digits (e.g. 2007) or be N/A. • Resolution Quarter End (Column L) • Enter Q1 for Quarter 1, Q2 for Quarter 2, Q3 for Quarter 3 or Q4 for Quarter 4. • Expiration Year (Column M) • The year that the issue’s statute of limitations will expire in. • The format should have 4 digits (e.g. 2007) or be N/A. • Expiration Quarter End (Column N) • Enter Q1 for Quarter 1, Q2 for Quarter 2, Q3 for Quarter 3 or Q4 for Quarter 4. • Likelihood Test (Column O) • Question is asking: Upon ultimate audit resolution, is it more likely than not (greater than 50% chance) that you will sustain any portion of the item in question? • Enter ‘y” if yes & complete information on the #UTP_LIKELIHOOD# tab. • Enter ‘n’ if no to make the amount expected to be sustained equal zero. • The answer to this question for Temporary differences is always “n”

  8. #UTP#CORE DATA (cont.) Columns P to V contain information about the Amount in Question (AIQ) • Amount in Question (Column P) • The total amount of the issue that is in question. • Enter disallowed expenses as a negative and unrecognized income as a positive. • AIQ State Current Appt. Rate (Column Q) • For State items, if the Type of UTP in column E is FIN48TD or FIN48PD, enter the Current Appt. Rate for the year the issue arose. • AIQ Current Tax Rate (Column R) • If the Type of UTP in column E is FIN48TD or FIN48PD, enter the Current Tax Rate for the year the issue arose. • AIQ Current Federal Tax Rate (FBOS) (Column S) • For State items, to compute the Federal Benefit of State enter the Federal Current Tax Rate. • For Foreign jurisdiction or if you do not want to compute Federal Benefit of State, enter 0. • AIQ State Ending Deferred Appt. Rate (Column T) • For State FIN48TD items, enter the Deferred Appt. Rate for the item when it is expected to be recognized. • AIQ Ending Deferred Tax Rate (Column U) • If the Type of UTP in column E is FIN48TD, enter the Deferred Tax Rate for the item when it is expected to be recognized. • AIQ Deferred Federal Tax Rate (FBOS) (Column V) • For State FIN48TD items, to compute the Federal Benefit of State enter the Federal Deferred Tax Rate. • For Foreign jurisdiction or if you do not want to compute Federal Benefit of State, enter 0.

  9. #UTP#CORE DATA (cont.) Columns W to AC contain information about the Amount Expected to be Sustained (AETBS) • Amount Expect to be Sustained (Column W) • Enter disallowed expenses as a negative and unrecognized income as a positive. • If the UTP Type in column E is FIN48TD enter the amount that is expected to be sustained. • If the UTP Type in column E is FIN48PD or FIN48TA the amount must agree to the result in the likelihood table. • AETBS State Current Appt. Rate (Column X) • For State items, if the Type of UTP in column E is FIN48TD or FIN48PD, enter the Current Appt. Rate for the year the issue arose. • AETBS Current Tax Rate (Column Y) • If the Type of UTP in column E is FIN48TD or FIN48PD, enter the Current Tax Rate for the year when the issue arose. • AETBS Current Federal Tax Rate (FBOS) (Column Z) • For State items, to compute the Federal Benefit of State enter the Federal Current Tax Rate. • For Foreign jurisdiction or if you do not want to compute Federal Benefit of State, enter 0. • AETBS State Deferred Ending Appt. Rate (Column AA) • For State FIN48TD items, enter the Deferred Appt. Rate for the item when it is expected to be recognized. • AETBS Deferred Tax Rate (Column AB) • If the Type of UTP in column E is FIN48TD, enter the Deferred Tax Rate for the item when it is expected to be sustained. • AETBS Deferred Federal Tax Rate (FBOS) (Column AC) • For State FIN48TD items, to compute the Federal Benefit of State enter the Federal Deferred Tax Rate. • For Foreign jurisdiction or if you do not want to compute Federal Benefit of State enter 0.

  10. #UTP_LIKELIHOOD#PROBABILITY MATRIX The first eight columns should be the same as #UTP# - Unit Code (Column A) • The unit codes must exist in Admin Center > Components > Manage: Units. (Codes are case sensitive!) • Jurisdiction (Column B) • The jurisdiction codes must exist already. (Codes are case sensitive!) • Either Pre-Defined or User Defined jurisdictions can be entered. • Year Issue Arose (Column C) • The year that the issue was (or should have been) reported on a provision or return. • The format should have 4 digits (e.g. 2007). • Dataset Year (Column D) • The year that the issue was identified for FIN 48. • The format should have 4 digits (e.g. 2007). • Type of UTP (Column E) • There are three choices: Permanent Difference, Temporary Difference or Tax Adjustment. • The code for a Perm Diff is FIN48PD. The code for a Temp Diff is FIN48TD. The code for a Tax Adj is FIN48TA. • UTP Code (Column F) • The UTP codes must exist in Admin Center > Components > Manage: Permanent Differences, Temporary Differences or Tax Adjustments. (Codes are case sensitive!) • Class (Column G) • There are two system generated choices: Statutory to Tax or GAAP to Statutory • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any user created Classes (in Admin Center) can also be entered here with the same code as in Admin Center – Classes. • Subclass(Column H) • Positions that were assigned the system generated Class (G or S) should be assigned the system defined default subclass accordingly (Def-Subclass-G or Def-Subclass-S) • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any other user created subclass codes corresponding to the parent class can also be entered here.

  11. #UTP_LIKELIHOOD#PROBABILITY MATRIX (cont.) Columns H to W contain information to populate the Probability Matrix • Probability Percentage (Columns H, J, L, N, P, R, T, V & W) • Enter the percentage (enter as a whole number: e.g. 10% should be entered as 10) expected to be sustained for each AETBS bucket. • The total of the buckets must equal 100. • You do not need to fill out all nine buckets. • Amount in Bucket (Columns I, K, M, O, Q, S & U) • Enter the amounts in each of the eight buckets in descending order from bucket 1 to bucket 8. (The full AIQ amount is known and does not have a separate column) • You do not need to fill out all eight buckets.

  12. #UTP_OTHER#OTHER DATA The first eight columns should be the same as #UTP# • Unit Code (Column A) • The unit codes must exist in Admin Center > Components > Manage: Units. (Codes are case sensitive!) • Jurisdiction (Column B) • The jurisdiction codes must exist already. (Codes are case sensitive!) • Either Pre-Defined or User Defined jurisdictions can be entered. • Year Issue Arose (Column C) • The year that the issue was (or should have been) reported on a provision or return. • The format should have 4 digits (e.g. 2007). • Dataset Year (Column D) • The year that the issue was identified for FIN 48. • The format should have 4 digits (e.g. 2007). • Type of UTP (Column E) • There are three choices: Permanent Difference, Temporary Difference or Tax Adjustment. • The code for a Perm Diff is FIN48PD. The code for a Temp Diff is FIN48TD. The code for a Tax Adj is FIN48TA. • UTP Code (Column F) • The UTP codes must exist in Admin Center > Components > Manage: Permanent Differences, Temporary Differences or Tax Adjustments. (Codes are case sensitive!) • Class (Column G) • There are two system generated choices: Statutory to Tax or GAAP to Statutory • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any user created Classes (in Admin Center) can also be entered here with the same code as in Admin Center – Classes. • Subclass(Column H) • Positions that were assigned the system generated Class (G or S) should be assigned the system defined default subclass accordingly (Def-Subclass-G or Def-Subclass-S) • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any other user created subclass codes corresponding to the parent class can also be entered here.

  13. #UTP_OTHER#OTHER DATA (cont.) Columns H to M contain information about Interest • UTP Interest (Column H) • Interest expected to be paid if the UTP is conceded should be entered as a positive amount. Leave this field blank if you intend to use TimeValue TaxInterest to calculate your interest. • Interest Start Date (Column I) • Enter in the start date for interest in MM/DD/YYYY format if you want to use TimeValue TaxInterest to calculate your interest. • Interest End Date (Column J) • Enter in the end date for interest in MM/DD/YYYY format if you want to use TimeValue TaxInterest to calculate your interest. • Hot Interest Start Date (Column K) • Enter in the start date for hot interest in MM/DD/YYYY format if you intend to use TimeValue TaxInterest to calculate your hot interest. • The end date for hot interest is the same as the end date for regular interest (Column J) • Interest Benefit Federal Current Tax Rate (FBOS & FBOF) (Column L) • For Federal Items, to compute the Federal Benefit of Federal Deduction for Interest treated Below the Line enter the Federal Current Tax Rate. • For State items, to compute the Federal Benefit of State of Interest treated Below the Line enter the Federal Current Tax Rate • For Foreign jurisdictions or if you do not want to compute FBOS because it is treated as Above the Line Interest, enter 0. • Interest Benefit State Current Tax Rate (SBOS) (Column M) • For State Items, to compute the State Benefit of State Deduction for Interest treated Below the Line enter the State Current Tax Rate (enter as a decimal). • If Interest is treated as Above the Line Interest enter 0.

  14. #UTP_OTHER#OTHER DATA (cont.) Columns N to Q contain information about Penalties and Other Tax Adjustments; Column R contains information about Interest • UTP Penalties (Column N) • Penalties expected to be paid if the UTP is conceded should be entered as a positive amount. • Penalties Rate (Column O) • For state positions or foreign/custom jurisdictions enter in the penalties rate to calculate penalties. • UTP Other Tax Adjustment 1 (Column P) • Other Tax Adjustments should be entered as a negative amount for tax expected to be paid and as a positive amount for tax expected to offset the UTP. • UTP Other Tax Adjustment 2 (Column Q) • Other Tax Adjustments should be entered as a negative amount for tax expected to be paid and as a positive amount for tax expected to offset the UTP. • Interest Underpayment/Overpayment Rate (Column R) • Enter either an O or a U to designate if you’d like to use the Overpayment rate or Underpayment Rate to calculate interest for your positions. This column will default to U if nothing is entered and if you calculate interest using TimeValue. *If you enter in both a UTP Penalties Amount and a Penalties Rate, the amount entered will be the amount shown on the reports. The rate will not be used.

  15. #UTP_ENTERED#ENTERED RATE TABLE The first eight columns should be the same as #UTP# • Unit Code (Column A) • The unit codes must exist in Admin Center > Components > Manage: Units. (Codes are case sensitive!) • Jurisdiction (Column B) • The jurisdiction codes must exist already. (Codes are case sensitive!) • Either Pre-Defined or User Defined jurisdictions can be entered. • Year Issue Arose (Column C) • The year that the issue was (or should have been) reported on a provision or return. • The format should have 4 digits (e.g. 2007). • Dataset Year (Column D) • The year that the issue was identified for FIN 48. • The format should have 4 digits (e.g. 2007). • Type of UTP (Column E) • There are three choices: Permanent Difference, Temporary Difference or Tax Adjustment. • The code for a Perm Diff is FIN48PD. The code for a Temp Diff is FIN48TD. The code for a Tax Adj is FIN48TA. • UTP Code (Column F) • The UTP codes must exist in Admin Center > Components > Manage: Permanent Differences, Temporary Differences or Tax Adjustments. (Codes are case sensitive!) • Class (Column G) • There are two system generated choices: Statutory to Tax or GAAP to Statutory • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any user created Classes (in Admin Center) can also be entered here with the same code as in Admin Center – Classes. • Subclass(Column H) • Positions that were assigned the system generated Class (G or S) should be assigned the system defined default subclass accordingly (Def-Subclass-G or Def-Subclass-S) • The code for STAT to TAX is S. The code for GAAP to STAT is G. • Any other user created subclass codes corresponding to the parent class can also be entered here

  16. #UTP_ENTERED#ENTERED RATE TABLE (cont.) Columns H to X contain information to populate Entered Rate Tables • UTP Interest (Column H) • This field is for export purposes only. Leave this field blank on initial import. • Compounding Option (Column I) • Designate the compounding option which should be used to calculate interest for the item. • Daily = D; Simple = S; Monthly = M; Q = Quarterly • Interest Start & End Date 1 (Columns J & K) • Enter in the start & end dates for interest in MM/DD/YYYY format. • Rates (Columns L, O, R, U, X) • Enter in the rate which should be used to calculate interest for the time period entered. • Only valid rates will be accepted. Rates are available in .25% increments from 1% up to 25% and in .50% increments from 25% up to 100%. (Ex. Enter in 11.25 or 45.50) • Interest Start & End Dates (Columns M, N, P, Q, S, T, V & W) • Subsequent start dates must be exactly 1 day after previous End Date • Dates must be entered in MM/DD/YYYY format.

  17. IMPORTING THE TEMPLATE INTO THE UTP APP • In the Uncertain Positions section or the My UTP section, click Import • A pop-up will appear for you to browse for the Import Template • Click Import when you have made your selection • Your import will be added to the queue and you will be notified via a popup in the upper right corner when it is complete. Click on the link in the popup to view the Import Status. • If there are no errors, click Done to return to the UTP App

  18. IMPORTING THE TEMPLATE INTO THE UTP APP • If the import is not successful, the Import Status will indicate how many errors occurred per sheet. • Click on the sheet to view the corresponding error detail which provides information about the location of errors in the file. • Correct the errors on your import template with the information provided • Click Done to return to the UTP App and import your file again

  19. IMPORT TEMPLATE TIPS • Formatting: • Make sure all cells in Excel are formatted as Text • Keep in mind that the codes and other entries are case sensitive • Enter all tax rates as decimals – up to 6 decimal places • Probability percentages should be entered as whole numbers • Do not put formulas in any cells • (Copy and Paste Special: Values to fix this) • Interest: • If you import in interest start and end dates, you will need to Recalculate Interest before it displays correctly • Uncertain Positions screen > Action Menu > Recalculate Interest > Select your positions and click Go • Beginning Balances: • To populate the UTP App with your beginning balances, import in the beginning balance information and roll the dataset over. Before rolling the dataset over, make sure the information you have imported in is all correct. • Status: • The UTP App will not allow you to Add a line item through import with a status of anything other than “New” • Once an item exists in the UTP App, you can change the position’s status through an import. • Modifications cannot be imported for positions which are final. (SET-F, NLU, EXP) • Positions cannot be settled on import. The workflows must be used.

  20. IMPORT TEMPLATE TIPS • Modifying a Position: • If you change data in any of the first 7 columns of data (columns A thru G) a new position will be added – the existing position will not be updated • The first 7 columns of data define the issue and any changes in these columns will create an entirely new issue • Labels, Notes & Attachments: • Labels, Notes & Attachments can not be imported into the UTP App • These have to be manually appended in the UTP App • Probability Table: • If you entered “y” in column O on #UTP# you should complete the #UTP_LIKELIHOOD# sheet. • The total of the % should equal 100% - any less or more will make the import fail. • If you import without the #UTP_LIKELIHOOD# sheet after entering “y” in column O on #UTP#, UTP App will populate zero as the amount expected to be sustained and the probability chart will be all zeros. • Duplicate Positions • If a duplicate row is found, all matching rows will fail on import. View Errors will provide you with more information regarding which position was duplicated in order to easily fix the issue.

  21. COMMON ERROR MESSAGES • Badly Formatted Record: • Check amount fields for commas or typos • Could not find associated contingency item: • The corresponding row on another tab failed. Correct all errors and re-import. • Character to number conversion error: • Check formatting of cells (should all be text) and ensure you’ve entered in data in the stated format. • Category not assigned to Unit • Component > Unit assignment is being enforced on import • Assign your components (categories) to your units in the Admin Center: Components

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