ONESOURCE™ UNCERTAIN TAX POSITIONS A Quick Start Guide for the UTP App

ONESOURCE™ UNCERTAIN TAX POSITIONS

A Quick Start Guide for the UTP App

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SUMMARY SLIDE• Getting Connected 3• Administration Set-Up 4-17• Users & User Rights 18-20• Navigating the UTP App 21-22

– Settings 23– My UTP 24– Uncertain Positions 25-27

• Entering a New Item 28-34• Interest & Penalties 35-36• Benefit 37-38• View Options 39-40• Labels 41• Documentation 42-43• UTP Events 44• FX Rates 45• Data Migration 46• Batch Printing 47

– Reporting 48– Admin Center 49

• Dataset Maintenance 50


GETTING CONNECTED

URL Address• To access the Uncertain Tax Positions Application (UTP App) you will

need to enter the following URL address in your browser: https://www2.taxstreampro.com/corp/

Web Browsers• The recommended browsers are Mozilla Firefox or Internet Explorer 7• The Text Size can be changed by changing the View options in your

browser.

Log-In• This will display the “LOGIN” dialog box. Enter the username and

temporary password that was assigned to you.• The username and password are case sensitive.

Screen Resolution• The UTP App is best viewed at a resolution of 1024x768 or higher

– For the horizontal reporting option to work (slide 48), a resolution of 1280x1024 is required

https://www2.taxstreampro.com/corp/


GETTING CONNECTED

Password Conventions• Once you are logged in, you will be automatically prompted to change

your temporary password• To change your password after initial login, on the right side of the

Home page, click Manage Passwords• Change your password by completing the fields on this screen and

click Change Password

• There are several password conventions which are now written on the Password Administration for ease of use.


OVERVIEW OF SOLUTIONS FOR UTPs

The UTP App can integrate with your Tax Provision calculation in two different ways depending on:– Whether or not you are using ONESOURCE Tax Provision’s (OTP)

application

– Scenario 1: ONESOURCE Tax Provision (4.x.x, 5.x.x, 6.x.x)• Tax Provision using OTP’s client/server application (including

Citrix)• UTPs using UTP App

– Scenario 2: No Tax Provision Application• Tax Provision calculations done in Excel• UTPs using UTP App


ADMINISTRATION SET-UP

Set-up of the system will vary depending on which scenario you are using

• Scenario 1 – ONESOURCE Tax Provision – Export Categories out of OTP’s Administration – Convert the export file – Import Categories into UTP App Admin Center – Create a dataset for your UTPs– Identify Dataset, Perm, Temps & Tax Adjustments available for

UTP App

• Scenario 2 – Excel– Manual Set-up OR Create a spreadsheet template

• Units, perms, temps and tax adjustments

– Create a dataset for your UTPs– Identify Dataset, Perm, Temps & Tax Adjustments available for

UTP App


SCENARIO 1EXPORT CATEGORIES FROM OTP

To export data into a file from OTP:1. On the Administration tab2. Choose Export Categories 3. Enter a file name (such as “export_categories.xls”)4. Click Save


SCENARIO 1CONVERT EXPORT FILE

• The export of categories from OTP will include information that is not necessary for the UTP App. The sheets that are used are:– #CU# Units– #CSC# SubConsolidations– #CPD# Permanent Differences– #CTD# Temporary Differences– #CTA# Tax Adjustments– #CS# States


SCENARIO 1IMPORT CATEGORIES INTO UTP APP

• On the home screen, click the Uncertain Tax Positions link

• After you’ve entered the UTP App– Click Admin Center > Components > Import

• Import the file into the UTP App:1. Click on Browse…2. Select the converted exported file3. Click Open & then Import4. Your file will be submitted to the queue and you will be notified via a popup

in the upper left corner when your import is complete.


SCENARIO 2CATEGORIES SET-UP

If you are not using OTP to complete your tax provision you will need to set up the Units, Permanent and Temporary Differences, Tax Adjustments and additional Jurisdictions.

• Populating Categories in the UTP App– Manual entry

• Data can be manually entered in the fields. The following slides will walk through these screens.

• Click Uncertain Tax Positions on the home page to access the Admin Center

– Spreadsheet Template • Data can be brought in using an import spreadsheet template• If you do not have an Import Categories spreadsheet template,

you can export one from the Admin Center.– In the UTP App: Admin Center > Components > Export >

With Assignments > OK

• All sheets which export are applicable to the UTP App


SCENARIO 2MANUAL CATEGORIES SET-UP

Click Admin Center > Components > Manage: Units1. Click Add2. Enter a unique unit code3. Enter the unit name4. Choose a Unit Type – Domestic or Foreign.5. Choose the Country6. Choose the Currency7. Click Save



Click Admin Center > Components > Manage: Permanent Differences, Temporary Differences or Tax Adjustments

1. Click Add2. Enter the unique code and name for your perm diff, temp diff,

or tax adj3. Click Save



Click Admin Center > Components > Manage: States1. Click Add2. Enter a unique state code3. Enter the jurisdiction name4. Click Save

Note: Many jurisdictions are in the system by default. You do not need to create these jurisdictions.

United States: The 50 states, AO (All Other), BS (Blended State) and Federal.

Canada: 13 Provinces and Canada. Other: National and Great Britain


SCENARIOS 1 & 2DATASET CREATION

• In the UTP App, click Admin Center > Datasets & Reporting Datasets

1. Click Add, a box will appear for you to enter the dataset info2. Enter the dataset name3. Select the designation for the dataset which will affect the

calculation of your UTPs (GAAP complies with ASC 740; IFRS complies with IAS12(ED))

4. Make sure No is selected as the Read Only option5. Select the fiscal year for the dataset6. Select the fiscal period (FY for full year, Q1 for the first quarter, M1

for January, etc.)7. Select Empty as the Transaction8. Click Save


SCENARIOS 1 & 2SETTING THE CURRENT DATASET

• Once you have created a new dataset, you will need to set it as the current dataset in order to populate it with your information

• Click Settings on the Navigation Bar and the following box will pop up

• Select the Dataset and Unit from the dropdown menus that you wish to work with and click Save


SCENARIOS 1 & 2USER ADMINISTRATION

• Units and Components– Assign the components necessary for a unit. Choose the

permanent & temporary differences and the tax adjustments that should be displayed as a choice in the UTP App

– In the UTP App, click Admin Center > Components > choose the Component Type you would like to assign to units from the Manage dropdown (Perms, Temps, Tax Adjs)

– Click on Assignment Mode• Click on the unit(s) you wish to assign components to• Select the components you wish to assign to the unit(s) by holding down Ctrl while

selecting the components

– After you have made your selections, click Save Assignments

– Please see the next slide for a screenshot of this process


SCENARIOS 1 & 2USER ADMINISTRATION


USERS & USER RIGHTS

• New User– To add a new user, contact Support. You will be asked to provide

a written request that states that the user should have the right to access your data. Included in the request, please provide the User’s name and email address. Be sure to designate the User Rights that should be assigned to the user.

• User Rights– The user can have several rights depending on what activities they

will be required to perform in the system.• Administration – Read/Write

– Allows a user all the rights of Read/Write users– Provides a user access to the rest of the Admin Center: Users, Datasets &

Reporting Datasets, Components

• Non Administration – Read/Write– Allows a user all the rights of Read Only users– Allows a user to enter, import, modify and/or delete data in the system

• Non Administration – Read Only– Allows a user to see and export data and reports– Provides a user access to select areas of the Admin Center: Job History, Audit

Trail, Documentation, Labels & Groups, FX Rates and Interest & Penalties

mailto:[email protected]


USER ASSIGNMENTS

• New Units– When you add a new Unit in the Admin Center: Components

section you may need to adjust the assignments.– Admin Center > Users > Manage: User - Unit

Assignment• Click on the User to open the Unit Assignment box

– If you are assigning units to more than one user, hold down Ctrl while selecting the users– Select the units you wish to assign to the user(s) by holding down Ctrl while selecting the units

• After you have made your selections click Save


USER ASSIGNMENTS

• New Sub-Consolidations– When you add a new SubConsolidation in the Admin

Center: Components section you may need to adjust the assignments.

– Admin Center > Users > Manage: User - SubConsolidation Assignment

• Click on the User to open the SubConsolidation Assignment box

– If you are assigning subcons to more than one user, hold down Ctrl while selecting the users– Select the subcons you wish to assign to the user(s) by holding down Ctrl while selecting the

subcons

• After you have made your selections click Save


NAVIGATING THE WEB APPLICATION

• Once you log into the system the first screen you will see is the Home page

• On this screen you will be able to navigate to the Provision App or the UTP App– Provision - if you have chosen to use Online Provision for your Tax

Provision– Uncertain Tax Positions – UTP App

• There are also links to relevant information for FAS 109 and FIN 48 (now codified under ASC 740)

• To return to this screen choose Home in the upper right and to leave the application choose Sign Out


NAVIGATING THE UTP APPLICATION

Once you click on the UTP link you will be brought into the UTP App.

• The App Menu:– Home – returns you to the home screen– Contact – pops up a box with the contact information for

the Support Group and the UTP Committee– Help – pops up the UTP App User Manual in a separate

window– Sign Out – signs you out of the UTP App

• The Navigation Bar will bring you to the different areas of the UTP App.


NAVIGATING THE UTP APPLICATION SETTINGS

• After first entering the UTP App, you will need to set the unit and dataset

• Click Settings on the Navigation Bar and the following box will pop up in the middle of your screen

• Select the unit and dataset you would like to work with from the drop down menus, then click Save

• Note: Click the Always Show checkbox if you want the Settings box to display every time the application loads; else the previously selected dataset/unit will load.

• Your selections will display in the upper right hand corner of the screen along with the year of the dataset in parentheses


NAVIGATING THE UTP APPLICATION MY UTP

• Click My UTP on the Navigation Bar• The My UTP section of the UTP App provides you with

important news and updates as well as some quick links for the application and guides on the functionality of the UTP App.

• Check here regularly for release notes, scheduled outages, and other information. The new import template format is also available here.

• Quick Links– Import – import your items into the UTP App– Export – export items, summary numbers, or summary categories

from the UTP App– Batch Print – batch print the main reports to PDF or XLS files– Dataset Merge – create a merged dataset

• This is the only area in the UTP App where this option is available.


NAVIGATING THE UTP APPLICATION UNCERTAIN POSITIONS• Click Uncertain Positions on the Navigation Bar• This is where you can add or modify positions and add or view

supporting documentation for a position.• The Main Contingency Menu is on the right hand side

• The Action Menu is on the left hand side– Click the Action Detail button after you make a

selection from the drop down menu for more information about each of the options

– Select positions from the list, choose an option and click Go/Execute Action to apply that action to the selected positions


NAVIGATING THE UTP APPLICATION UNCERTAIN POSITIONS

• Once a position has been added, you can click on the item’s code (hyperlink) to: Edit or Remove or Copy (if it was added during the current period) or Modify the item for an event (if it was added during a previous period), Undo a Settlement, view an individual item’s schedules and Audit History, or Add or View documentation related to the item.


• Individual Item Schedules– Calculation Support

• Shows the calculation support for the UTP in Local Currency. • The Calculation Support can be chosen from a position in the

Contingencies Table or from either the Uncertain Deferred Rollforward report or Uncertain Payable Rollforward report when they are in Local Currency view.

– Item Detail • Item Detail shows all the entries made for each item that was

entered in the system. Each entry for amounts, rates, more likely than not and other adjustments is captured in this report. The Deferred Category, for temporary differences, as well as whether the position is Non-Cash or Equity also displays.

– Interest & Penalties• Interest & Penalties shows the TimeValue TaxInterest report

if you used the system to calculate your interest &/or penalties. This report can also be viewed by clicking the Report button on the final screen of the data entry work flow.

– The individual item schedules can be batch printed from the Action Menu.

NAVIGATING THE UTP APPLICATION UNCERTAIN POSITIONS


UNCERTAIN POSITIONSENTERING A NEW ITEM

• Add a new position– On the Main Contingency Menu, click Add New position

• It will begin the workflow by asking for Type of Issue– You can choose Permanent Difference, Temporary

Difference or Tax Adjustment then click Next

• The following slides will show you the workflow screens that will walk you through the data entry process.



Step 1 – Type of Issue

Choose Permanent Difference as the Type of Issue

Step 2 – Identify the Issue Characteristics

Choose the code & name, year issue arose, jurisdiction, class, subclass, comment and if the position should be marked as equity or non-cash from the drop down boxes.



Step 3 – Enter Issue Details on an As Filed basis. Enter the period and year that the issue is expected to be resolved and when the statute of limitations will expire.

The amount in question is the amount identified as potentially being subject to audit. If the amount, as it would impact the provision, reduces Taxable Income than it should be entered as a negative amount.

For this example enter $(2,000,000). A total book expense of $5,000,000 was reduced by $3,000,000 via a permanent item. This left $2,000,000 that was deducted, reducing taxable income for FAS 109.

Enter the current tax rate for the year the issue arose.



Step 4a – More Likely than Not Determination

Answer the More Likely than Not determination. An answer of “No” will provide on 100% of the amount in question and not allow for the probability schedule.



Step 4b – Cumulative Probability Analysis

The amounts in “Amount Sustained Current” are pre-populated by reducing the total amount in question by 1/8th increments. The incremental amounts can be edited as needed.

Assign a percentage, not to exceed 100% cumulatively, for each threshold level of the amount expected to be sustained.

Bucket #4 originally populated at (1,250,000) or (2,000,000) X 5/8

However the correct bucket amount for this example should be (1,200,000)



Step 5 – Issue Details – Unrecognized Position

Amount Expected to be Sustained will carryover from the probability analysis. To adjust this amount you need to go back to the probability analysis and change the facts.

The Current Tax Rate will be defaulted to the rate entered on the As Filed screen. Make adjustments as necessary.



Step 6 – Adjustments to the UTP

• Enter any additional expected adjustments to the UTP for Interest (with tax deductibility rates), Penalties and Other Tax Adjustments. The interest and penalties can be computed by clicking the Interest & Penalties Calculator button.

• Click Save when you are done.


UNCERTAIN POSITIONS INTEREST & PENALTIES

• You can calculate Interest &/or Penalties by using TimeValue’s TaxInterest software by clicking the Interest & Penalties Calculator button on the last data entry screen.

• Federal Positions will show the following screen. Select the radio button to the right of Domestic to calculate interest for the pre-defined Federal jurisdiction.

• Make your selections, use the calendar icon to enter the required dates and click Calculate Interest & Penalties.


UNCERTAIN POSITIONS INTEREST & PENALTIES

• State/Custom Jurisdiction Positions will show the following screen.• If you are calculating interest for a State pre-defined in the system,

select the radio button to the right of Domestic. Make your selections, use the calendar icon to enter the required dates and click Calculate Interest & Penalties.

• If you are calculating interest for a jurisdiction not defined in the system, select the radio button to the right of International. You will be able to build a custom rate table for the position. Click Calculate Interest & Penalties when you are done.Pre-Defined Jurisdiction Non Pre-Defined Jurisdiction


• Federal Benefit of State Deduction– The UTP App will automatically calculate the Federal benefit on

state amounts when the federal tax rate is entered.

UNCERTAIN POSITIONS BENEFIT

As Filed Screen for a State Issue: Unrecognized Screen for a State Issue:


• Federal & State Benefit of Federal deduction of Interest– If the interest expense on your UTPs is deductible and

you would like to calculate the federal and state benefit of the expense, enter the tax rates below the interest section.

UNCERTAIN POSITIONS BENEFIT

Interest Screen for a Federal or State Issue:


• Sorting– The contingencies table can be sorted by any column

• Click on the column header to sort the column in ascending order, click the header again to sort the column in descending order

– Expected to be Resolved & Statute of Limitations are sorted by year and then quarter

• Filtering– The contingencies table can be sorted based on operators on nine

different columns• Begin typing your filter (starting with the column header name) in the

filter box located at the bottom right of the Contingencies table• Choose your filter option from the list that appears and then choose the

value you would like to filter on from the selections that appear• Click Create Filter

– To view your filters, click the arrow to the right of Current Filters• A number displays next to Current Filters to show the active filters

– To remove a filter:• Click on the filter in the Current Filters dropdown• Click Clear All from the dropdown to remove all filters

– The number of rows in the table (lower left corner) updates based on your filter(s).

UNCERTAIN POSITIONS VIEW OPTIONS


UNCERTAIN POSITIONS VIEW OPTIONS

• Click Grid Tools in the lower left of the Contingencies table:

– Items can be highlighted if they are expiring within the dataset year

• Select the color you would like to highlight them in

– Group By Component, Jurisdiction, Year or Status– Select or Deselect all positions in the table


UNCERTAIN POSITIONS LABELS

• An item can have one or many labels assigned to it. This allows the user to group items together in the contingencies table and on the reports.

• Labels can be added by clicking on the blue/gray symbol next to an item’s name or in the Admin Center.

– Enter in a new label name in the box and click Create Label– The new label will appear in the list

• Clicking on the blue/gray symbol is also the way to assign labels to a specific position.

– Hold down CTRL while selecting the labels you want to assign to the position

– Click Submit Label Assignment when done


Notes and attachments can be added to a line item in the UTP App.

Click on the item’s code and a menu will display. Click Documentation

The Documentation box will display.

Type in the note area. The Note area will dictate the title. To attach a file click Browse… to locate the file. The file will be added to the note and you will have the ability to attach another file. When you are finished entering notes and attaching files click Save.

UNCERTAIN POSITIONS DOCUMENTATION


UNCERTAIN POSITIONS DOCUMENTATION

After a note is entered or a file is attached, the note icon next to the position turns yellow. Click the icon or the Documentation option from the item menu to view the documentation or reply to a previous post. Posts are listed by ‘Post Date’ with the most recent posts or replies at the top of the list.

• Click Reply to reply to a previously entered post or click New Post to create a new post for the line item.


UTP EVENTS

Non-Final • Adjust for a Change in Judgment

– Issue existed in a prior period, but in the current period the outlook for the amount or the rate differs from the prior period

• Adjust for a Change in Interest– Issue existed in a prior period and the

interest amount needs to be updated.• Return to Provision

– Issue existed in a prior period, but the amount differs from the prior period because of a true-up item

• Settlement – Partial– A settlement has been reached on a

portion of the position and the remaining balance continues to be uncertain.

Final• No Longer Uncertain

– Issue existed in a prior period, however, in the current period it is determined that the UTP is no longer necessary

• Expiration of Statute– Issue existed in a prior period, however,

in the current period it is determined that the UTP is no longer necessary since the statute of limitations has expired

• Settlement - Final– An agreement has been reached on the

issue and a settlement has been reached

Once a position is added or rolled over from a prior period you can Modify the item. The type of modification will determine if the issue is final and should not be rolled to the subsequent period.


FOREIGN EXCHANGE RATES

• Foreign Exchange Rates are determined on a unit by unit basis.

• The Beginning Spot rate is rolled over from the ending spot rate in the previous period, but can be modified if necessary.

• The FX Rates for the current unit are displayed above the Contingencies table.

• The Beginning & Ending Spot Rates and the Weighted Average rate can be updated by clicking directly on the rate and making your changes.– Click the Save icon (blue disk) after you have made your

changes.


• Importing Data into the UTP App– UTP information can be populated in the system using an

import spreadsheet template– This functionality is accessed through the Uncertain

Positions section or the My UTP section

• Exporting Data out of the UTP App– The entered data can be exported out of the module to

an Excel spreadsheet• Export UTP Items• Export Categories• Export Numbers

UNCERTAIN POSITIONSDATA MIGRATION


UNCERTAIN POSITIONSBATCH PRINTING

• You can batch print the main reports from the UTP App into a PDF or XLS file for easy saving or printing

• On the Main Contingency Menu click Batch Print• This box will display where you can make your batch

print selections • Click Print when you have finished making your

selections.


NAVIGATING THE UTP APPLICATION REPORTING

• Click Reporting on the Navigation Bar• Select which of the 9 main reports you would like to view as

well as the view options for the report from the drop down menus and click Get Report

• If your screen resolution is making it difficult to see the entire filter menu, click the second icon next to "Reporting" to view the filters vertically, instead of horizontally.

• If you have chosen to view a subconsolidation you must have rights to view the subconsolidation (See User Assignments–slide 22)

• Right click on any of the reports, near the report header to export the report to PDF or Excel


NAVIGATING THE UTP APPLICATIONADMIN CENTER

• Click Admin Center on the Navigation Bar• Users have access to different areas of the Admin Center

based on their user rights and permissions (See Users & User Rights–slide 18)


Admin Center – Dataset Maintenance

• The positions can be copied to a new dataset or can be rolled over to a new period.

• In the UTP App click Admin Center > Datasets & Reporting Datasets

• Click Add New and fill out the information for the dataset you are creating

• To Copy: – Select Copy as the Transaction, choose the dataset you wish to

copy from the drop down menu & click Save

• To Rollover: – Select Rollover as the Transaction, choose the dataset you wish to

rollover from the drop down menu & click Save

• Remember to set your newly created dataset as the current dataset by clicking Settings on the Navigation Bar in the UTP App

Documents

ONESOURCE™ UNCERTAIN TAX POSITIONS A Quick Start Guide for the UTP App