[Felix The Cat]

Good Morning,

I would very much appreciate if someone could guide me in the calculation to determine the Tax Provision on compilation engagement?

I have the following rough idea:

1. Look on the Corporation Notice of Assessment: Determine the Current Balance Owing from 2018 (I’m in Canada, but in sure in the USA they have similar documents).

2. Look at the ‘Statement of Interim Payments’ ➡️ determine the amoutn of payments made (deduct from balance owing )

3. Add the interest Charges

4. Deduct Installments paid

And then what do I do ?????

Thanks and stay healthy,

Ftc

Havent decided when I will be writing BEC, FAR, REG, AUD

[Icarito]

People make an entire career of calculating tax provisions.

You are missing the 2019 Provision amount. In it's most simple form:
PTBI/L
+ favorable/unfavorable temps/perms (GAAP to Stat or Stat to tax)
(utilize NOL if available)
x tax rate = current provision.

Also need to include 2018 return to provision (true up 2018 provision amount to 2018 return filed) and there is also a deferred aspect of the provision for DTA/DTLs as well as tax adjustments for things like FIN48.

FAR - 80 (4/1/2019)

BEC - 82 (9/7/2019)

AUD - 81 (11/23/2019)

REG - 94 (3/9/2020)

[Author]

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