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Tax Reconciliation - Expected vs. Actual

This template provides for the reconciliation of actual current and deferred tax provisions to the expected tax provisions in accordance with FASB ASC 740,
Income Taxes
.
The template consists of the following individual sheets:
  • Input - This sheet discusses the reconciliation methods that may actually be used. Select the basis of reconciliation and enter the actual current tax provision, the actual deferred tax provision, and various tax rates. (This data should be carried over from previous tax preparation computations.) After completions, proceed to the Base Rate sheet or the Graduated Rate sheet.
  • Base Rate - This sheet is only available when either the federal base rate method or the combined base rate method of reconciliation is selected on the Input sheet. In this sheet, enter the amounts of pretax income, state taxes (if the Federal Base Rate basis is selected), nondeductible expenses, tax-exempt income, and any additional changes in deferred tax items or loss carryforwards as instructed, including changes in the adjustments to taxable and temporary differences (and the related change in unrecognized tax benefits) for tax positions that failed either the more likely than not (MLTN) recognition or measurement criteria of FASB ASC 740. Blank lines are provided for additional items that may be necessary for the reconciliation (such as AMT or an overaccrual of the prior periods taxes). All input items may not be applicable for a particular reconciliation. All shaded cells will calculate automatically. When all inputs are completed, the calculated current, deferred, and total tax provisions should equal the amounts on the Input sheet.
  • Graduated Rate - This sheet is only available when the Combined Graduated Rate basis of reconciliation is selected on the Input sheet. In this sheet, enter the amounts of pretax income, nondeductible expenses, tax-exempt income, and any additional changes in deferred tax items or loss carryforwards as instructed, including changes in the adjustments to taxable and temporary differences (and the related change in unrecognized tax benefits) for tax positions that failed either the more likely than not (MLTN) recognition or measurement criteria of FASB ASC 740. Blank lines are provided for additional items that may be necessary for the reconciliation (such as AMT or an overaccrual of the prior periods taxes). All input items may not be applicable for a particular reconciliation. All shaded cells will calculate automatically. When all inputs are completed, the calculated current, deferred, and total tax provisions should equal the amounts on the Input sheet.