tax-provision-calculator
// ASC 740 income tax provision calculation skill with deferred tax analysis
$ git log --oneline --stat
stars:384
forks:73
updated:March 4, 2026
SKILL.mdreadonly
SKILL.md Frontmatter
nametax-provision-calculator
descriptionASC 740 income tax provision calculation skill with deferred tax analysis
allowed-toolsRead,Write,Glob,Grep,Bash
metadata[object Object]
Tax Provision Calculator
Overview
The Tax Provision Calculator skill implements ASC 740 income tax accounting requirements. It calculates current and deferred tax provisions, analyzes temporary differences, and supports uncertain tax position assessment.
Capabilities
Current Tax Expense Calculation
- Book-to-tax adjustments
- Taxable income determination
- Applicable rate application
- Credit utilization
- NOL usage
- Estimated payment reconciliation
Deferred Tax Asset/Liability Computation
- Temporary difference identification
- Tax basis determination
- Book basis tracking
- Rate change impacts
- Deferred tax rollforward
- Classification (current/non-current)
Permanent vs. Temporary Difference Classification
- Permanent difference identification
- Book-only items
- Tax-only deductions
- Meals and entertainment
- Fines and penalties
- Stock compensation excess benefits
Valuation Allowance Assessment
- Positive evidence analysis
- Negative evidence analysis
- Scheduling of reversals
- Tax planning strategies
- Historical profitability
- Future projections
Rate Reconciliation
- Statutory to effective rate bridge
- State tax impact
- Foreign rate differential
- Permanent items impact
- Credits effect
- Discrete items
FIN 48/ASC 740-10 Uncertain Tax Position Analysis
- Recognition threshold (more-likely-than-not)
- Measurement (largest amount >50% likely)
- Interest and penalty accrual
- Statute of limitations tracking
- Settlement consideration
- Disclosure requirements
Usage
Quarterly Provision
Input: Pre-tax book income, tax adjustments, rate assumptions
Process: Calculate current and deferred components, assess UTP
Output: Tax provision entries, effective rate reconciliation, disclosure support
Return-to-Provision True-Up
Input: Filed tax returns, original provision, identified differences
Process: Reconcile provision to return, record true-up adjustments
Output: True-up entries, updated deferred tax schedules
Integration
Used By Processes
- Income Tax Provision and ASC 740
- Tax Return Preparation and Filing
- Financial Statement Preparation
Tools and Libraries
- Tax provision software APIs
- ONESOURCE
- Corptax
- Longview
Best Practices
- Maintain detailed book-tax difference schedules
- Document valuation allowance conclusions quarterly
- Track UTP positions with supporting analysis
- Reconcile deferred tax accounts to underlying schedules
- Build rate reconciliation with granular detail
- Establish tax accounting procedures manual