It's that time of year again - Tax Provision Time. Yeah!!!
Is your company currently calculating it's 2011 tax provision? If so, how is your state income tax provision going? Did you calculate your effective state tax rate? Did you take into account your company's significant state tax addback and deductions? How about changes in apportionment? Law changes? Rate changes?
How about everyone's favorite - state uncertain tax positions or UTPs. Is your company taking those into consideration correctly? Is your reserve growing year after year? Did your company conduct the appropriate level of analysis (a thorough one) to determine what, if any reserve needs to be recorded for FIN 48 purposes?
What items could you possibly need to set-up a reserve for?
- Intercompany transactions
- Combined reporting vs. Separate company return filing
- Apportionment factor issues (measurement and sourcing)
- Restructuring challenges (forced combination, etc.)
- Business vs. Nonbusiness income characterization