ONESOURCE Uncertain Tax Positions Settlements in the UTP App *Version 4.0+

2 Settlements Introduction Please take some time to get familiar with the workflow before using it to settle positions. Modifications (CII, CIJ, RTP) can be made to a position before it is settled. Settlements cannot be imported into the UTP App – the workflow screen must be used. To settle a position, select Modify > Enter a Settlement from the Item Menu and then choose Final or Non-Final –Make sure to read the warning message on the popup: “Once saved, Final Settlements cannot be modified. Non-Final Settlements will be un-modifiable in the current dataset”

3 Full Settlements Workflow Screen Current Outlook column is pre- populated and not editable Populate Settlement Outlook column –Enter in the amount of Tax that was settled with the taxing authorities –Enter in Gross Interest paid 3 pieces of benefit are calculated for you, but can be modified –Enter in Penalties paid –Note: Grayed out cells are not editable! NLU column is the calculated non settled amounts based on your entries in Settlement Outlook column If you click Save without filling in any fields in the Settlement Outlook column, all the amounts will be marked as NLU not Settled. A warning will popup if this is the case.

4 Full Settlements Reports SET column/row on reports will populate with information from the Settlement Outlook column Change columns/rows on reports will populate with information from the NLU column Ending Balance on reports will be zero

5 Partial Settlements Workflow Screen Current Outlook column is pre- populated and not editable Populate Settlement Outlook and Remaining Balance columns –Enter in the amount of Tax that was settled with the taxing authorities and the amount which should remain uncertain –Enter in Gross Interest paid and the amount which should remain uncertain 3 pieces of benefit are calculated for you, but can be modified –Enter in Penalties paid and the amount which should remain uncertain –Note: Grayed out cells are not editable! NLU column is the calculated non settled amounts based on your entries in Settlement Outlook and Remaining Balance columns If you click Save without filling in any fields in the Settlement Outlook or Remaining Balance columns, all the amounts will be marked as NLU not Settled or as the Ending Balance. A warning will popup if this is the case.

6 Partial Settlements Reports SET column/row on reports will populate with information from the Settlement Outlook column Change columns/rows on reports will populate with information from the NLU column Ending Balance column/row on reports will populate with information from the Remaining Balance column

7 Partial Settlements Rollover NCS/EQ OptionLast Known Deferred CategoryLast Known Resolved in Qtr/YrLast Known Statute Qtr/YrLast Known Likelihood ResponseNo (for Perms & Tax Adjs) InterestGross Interest RB Fed Tax Rate - InterestInterest - FBOF/Gross Interest* State Tax Rate - InterestInterest - SBOS/Gross Interest* PenaltiesPenalties RB OTA 1OTA 1 RB OTA 2OTA 2 RB I&P Calc All FieldsLast Known When positions are partially settled, they cannot be modified again in the same dataset. If a mistake is made, choose Undo Settlement from the Item’s menu to revert the position to a status of Rolled Over. Once the positions are rolled over, the workflow will be as populated as possible based on last known values and the amounts from the Remaining Balance (RB) column. AIQAETBS Amount Gross Tax Current RB/Current Tax Rate*0 Current Appt %Last KnownAIQ Current Appt % Current Tax RateLast KnownAIQ Current Tax Rate Fed Tax Rate Tax Benefit - Current RB/Gross Tax - Current RB*AIQ Fed Tax Rate** Deferred Appt %Last KnownAIQ Deferred Appt % Deferred Tax Rate Gross Tax Deferred RB/AIQ* AIQ Deferred Tax Rate Fed Deferred Tax Rate Tax Benefit - Deferred RB/Gross Tax - Deferred RB* AIQ Fed Deferred Tax Rate *or zero if the specified amounts are not available **or Other Tax – Benefit/Other Tax – Gross if available