Checklists for Simplifying the Tax Provision Process
Last Updated August 23, 2022
The corporate tax provision process can be complicated and has the potential for inaccuracies. Our three-part checklist can help ensure a consistent tax provision process, including when evaluating uncertain tax positions.
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Public and private companies must submit quarterly and annual provisions for income tax. Not only are they among the most-scrutinized processes for most tax departments, but they also have the added complication of a short time frame for execution. This creates a host of inaccuracy risks and potential control failures. To ensure a smooth provision process, data organization and an understanding of tax law implications are paramount.
Also essential to the process is understanding its flow so you can quickly and specifically address any issues that arise. Nick Frank, a Bloomberg Tax product lead with 20 years of corporate income tax leadership experience, recommends breaking down the provision process flow into three discrete pieces, which can be used to create evaluative checklists for any part of ASC 740 calculations.