Tax provision software you work with in conversation — every rate reconciliation line tested and pinned to its workpaper
Every rate reconciliation line tested against the 5% rule, tied to its workpaper.
See one case, screen by screen ↓Tax provision software for corporate tax teams that prepares the ASC 740 provision workpapers and the ASU 2023-09 rate reconciliation. Seven agents import the trial balance, build the deferred roll-forward, test every reconciling item against the 5% rule, explain each return-to-provision true-up and answer the auditor's requests, with every figure tied to its workpaper. The tax controller decides every judgement with a reason code and signs the provision.
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Every quarter the tax team locks the trial balance for every entity, maps new accounts to provision lines, computes current tax by jurisdiction, rolls forward the deferred balances and the valuation allowance, estimates the annual effective rate under ASC 740-270, records discrete items and updates the uncertain positions. In the quarter the return is filed, it books the return-to-provision true-ups. Then it builds the rate reconciliation and the footnote, and answers the auditor's request list. Most of that lives in workbooks one analyst understands.
ASU 2023-09 made the rate reconciliation harder to get right. It has eight fixed categories, in percent and amount. Within foreign tax effects, cross-border tax laws, credits and nondeductible items, every item at 5% of tax at the statutory rate or more must be shown on its own line — foreign items by country and then by nature. A line just under the threshold this year can cross it next year, and a classification error is visible in the 10-K. True-ups are computed but rarely explained, the deferred roll-forward is tied to the balance sheet late, and the auditor's requests arrive after the work is done, so it is done twice.
Estimated split for the quarterly provision of a multinational group with a few dozen entities, in spreadsheets and with the solution.
Seven agents import the trial balance, build the deferred roll-forward, apply the 5% rule, explain every true-up and answer the auditor; the tax controller decides and signs.
Kestrel & Vane Group — 46 legal entities on two ledgers, a calendar year — ended Q3 FY2026 on Wed 30 Sep. It is Wed 7 Oct, day 5 of the close, and the provision is due to the corporate controller tomorrow. Here is how the tax controller works with the agents — asking, instructing, approving and signing — screen by screen, in the working solution.
Her home says it in one sentence: the Q3 provision is due to Daniel Okafor on Thu 8 Oct, the agents built it from 46 trial balances, the projected effective rate is 21.8%, and 5 things need her before she signs. Below, each agent writes to her in plain words, cites its sources and ends in a button: the $412K R&E true-up, Ireland's top-up tax near the threshold, a $655K release for Mexico 2020, 4 drafted auditor replies, and a roll-forward that ties.
“The R&E true-up is $412K, a change in R&D capitalisation … I propose you accept it in Q3 as a discrete item.” — Return-to-provision agent
The reconciliation is one table in the eight ASU 2023-09 categories, projected as the 10-K will show it. Pretax income of $642.0M gives tax at 21% of $134.8M and a 5% threshold of $6.74M. A threshold column shows each item's share of statutory tax. She selects Ireland's statutory rate difference, −$21,830K, and the agents on that line explain it: 16.2% of tax at the statutory rate, so it is shown on its own line, and the Irish profit of $256.8M comes from the trial balances of the two Irish entities and ties to the provision by jurisdiction.
“16 items tested · 4 own lines · 4 categories · 8 in other.” Every amount pins to its workpaper.
The domestic minimum top-up tax is $6,420K, 4.8% of tax at the statutory rate, so this year it stays in “Ireland — other”, with $321K of headroom. If Irish profit beats plan by $12.8M (5.0%), it crosses. The agent proposes keeping it in other and re-testing on the Q4 forecast, with the own-line wording already drafted, and marks the proposal “Your call”.
“I will re-test when the Q4 forecast arrives and tell you the same day. The own-line wording is already drafted, so the 10-K does not wait.”
The pin beside $6,420 opens workpaper W-RR-02.2: Irish profit subject to top-up of $256,824K, a top-up rate of 2.5% (15% less 12.5%), the $6,741K threshold and the 95% share. Below are its three sources — the workpaper Mateo Lindqvist prepared, the trial balances of KV Ireland Holdings Ltd and KV Ireland Manufacturing Ltd from S/4HANA, and ASC 740-10-50-12A — and the line's history.
History: “Threshold agent re-tested the line after the trial balance update.”
On the other adjustments line she types an instruction: move the FX on tax balances to foreign tax effects. The threshold agent does not just do it. It shows a proposed change — re-test the line, update the workpaper, record the change on the audit trail — marked “Needs your approval”, with Approve, Edit and Reject.
“I can do that. Here is exactly what would change. It needs your approval, and I will re-run the 5% test and the tie-outs straight after.”
Built from the trial balance and 61,204 fixed assets: every temporary difference from 1 Jan 2026 through the income statement, OCI and FX to 30 Sep, with fixed assets traced to the ledger by asset class. Capitalised research costs fell $12,920K as 2022–24 domestic costs were deducted under section 174A. Year-to-date deferred expense of $8,140K equals the provision, and the net liability of $4,260K equals the balance sheet.
“4 of 4 tie-outs pass.” The agents check each other before anyone signs.
The FY2025 returns against the FY2025 provision: 7 true-ups, net +$31K to Q3 tax, 3 that need her. The largest is $412K. KV Technologies Inc. claimed $1.962M of research credit, and section 280C, restored by the 2025 Act, says the R&E deduction must be reduced by the credit claimed. The provision did not reduce it: $1.962M × 21% = $412K more current tax, from Form 6765, Section G.
“It is a change in how R&D costs are capitalised and deducted, not an error in the credit.”
She asks why it was not in the provision: the FY2025 provision, signed 9 Feb 2026, missed the reduction for KV Technologies Inc., which joined the consolidated return in 2025. She picks A2 — Accept, explanation confirmed — writes her note and signs. The agent books nothing; her decision, reason and e-signature go on the audit trail.
Her note on the record: “Checked Form 6765 Section G and the section 280C computation; the provision did not reduce the deduction.”
The agent built the Q3 request list for Halden & Ross from Q2's 31 requests plus 3 for what changed this quarter: 34 items, 29 ready before the auditor asked. Renée Castell sent 6 requests. Four have a drafted reply that cites its workpapers — the support for the Ireland 5% decision and the roll-forward tied to the balance sheet among them — and her question on any true-up over $250K waits for Aisha's R&E decision. Aisha approves and sends, edits, or sends a draft back with a reason.
“I share nothing until you approve it.” — Auditor agent
The sign-off shows what she is signing — Q3 tax expense of $35,212K, a projected annual rate of 21.8%, $101,320K year to date — and the 12-item close checklist the agents checked. Before signing she asks what is still open: none of it changes Q3 by more than the $500K materiality. She signs with S2 — Complete, with open items noted — and Daniel Okafor accepts the provision into the consolidated close for the 10-Q.
Her note: “Open items are below materiality and will be finished before Daniel accepts.”
The same Q3 provision, seen by the five people who carry it — what their close looked like, and what it looks like now.
Seven agents import the trial balance, build the deferred roll-forward, apply the 5% rule, explain every true-up and answer the auditor; the tax controller decides and signs.
Imports the locked trial balance from each ledger, checks that each entity balances, that period-end FX rates are applied and that pretax income ties to consolidation, and maps every account to its provision line — proposing a line, with its reason and confidence, for each new account.
Builds the deferred tax roll-forward from the trial balance and the fixed-asset ledger, computes fixed-asset differences from book and tax basis by asset class, remeasures at enacted future rates and ties deferred expense to the provision and the net balance to the balance sheet.
Applies the ASU 2023-09 5% rule to every reconciling item — foreign tax effects by country and then nature; cross-border, credits and nondeductible items by nature — explains each result in one sentence with the rule and the workpaper cited, and warns when an item reaches 90% of the threshold.
Compares each filed return with the provision and, for every difference, gives the current and deferred effect, the return line, the law that explains it and the rate-reconciliation category, and proposes a decision with its confidence.
Keeps every uncertain position current — recognition, measurement, interest and statute dates — watches audit letters and settlements, and proposes a release when a statute ends with no assessment, with the evidence.
Builds the quarter's request list from last quarter's requests and this quarter's changes, drafts a reply to each auditor request that cites its workpapers, and prepares the auditor's read-only view.
Drafts the footnote tables, income taxes paid by jurisdiction, the uncertain positions roll-forward and the audit committee note, with every number cited.
Decides every judgement and signs the provision. The agents propose; a named person decides.
Every screen has a conversation with the agents beside it. Ask why, ask for the computation, or give an instruction — each answer cites its source, and a change waits for your approval.
Why is Ireland on its own line?
Because −$21,830K is 16.2% of tax at the statutory rate ($134,820K), and the rule splits foreign tax effects by jurisdiction and nature at 5%. Germany ($8,346K, 6.2%) passes too. No other country does.
Which numbers will the auditor question?
Three, from last year's requests and this quarter's changes: the $412K R&E true-up (over the $250K they always ask about), the Ireland top-up close to the threshold, and the Mexico release. Replies for all three are drafted.
Why wasn't the R&E true-up in the provision?
The FY2025 provision was signed on 9 Feb 2026. It missed the reduction for KV Technologies Inc., which joined the consolidated return in 2025, and deducted the full $61,480K. The return applies the reduction.
What changed since Q2?
The projected rate fell from 22.1% to 21.8%. The research credit estimate rose $1.6M, the German rate cuts remeasured deferred taxes for a $1,284K benefit, and the valuation allowance rose $3,210K for Mexico and Brazil.
13 screens from the working solution, on its sample data. Pick one to see it large.
The rules every quarter is tested against are settings, versioned and approved by the VP Tax.
| Setting | Default | Choose from |
|---|---|---|
| Disaggregation threshold | 5% of tax at the statutory rate | Set by the tax team; takes effect when the VP Tax approves |
| Federal statutory rate | 21% | The base of the reconciliation |
| Near-threshold warning | 90% of the threshold | The threshold agent warns when an item reaches this share |
| Agent confidence floor | 85% | Below it, an agent hands the item to a person |
| Provision materiality | $500K | True-ups and differences above it always go to the tax controller |
| Auditor attention line | $250K | True-ups above it get a drafted reply before the auditor asks |
| Annual effective rate method | Worldwide, loss jurisdictions excluded | Worldwide, loss jurisdictions excluded · Worldwide, all jurisdictions |
| Where notifications go | Teams and the bell | Teams and the bell · Mail and the bell · The bell only |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Ventana / ISG Research — 59% of tax departments use only spreadsheets for the provision, from its Office of Finance benchmark, and 44% of companies finish the quarterly provision within six business days, from its close research; SEC, Chairman Cox, February 2006 — close to a third of early SOX material-weakness filers had one in income taxes; FASB ASU 2023-09, ASC 740-10-50-12A on the rate reconciliation). People, companies and entities named on this page are fictional — characters and sample data in the working solution.
Tax provision software for corporate tax teams that prepares the ASC 740 provision workpapers and the ASU 2023-09 rate reconciliation. Seven agents import the trial balance, build the deferred roll-forward, test every reconciling item against the 5% rule, explain each return-to-provision true-up and answer the auditor's requests, with every figure tied to its workpaper. The tax controller decides every judgement with a reason code and signs the provision.
In conversation, beside the work. Each agent posts what it found and what needs a person, every screen has an ask box, and every line of the rate reconciliation has its own thread. Ask why a line is shown on its own or tell an agent what to change; it answers with its sources, and any change is shown as a proposal for you to approve, edit or reject.
The threshold agent computes 5% of pretax income times the statutory rate and tests every reconciling item: foreign tax effects by country and then by nature, and cross-border items, credits and nondeductible items by nature. Each result is explained in one sentence with the rule and the workpaper cited, and the agent warns when an item reaches 90% of the threshold, so a line that is about to cross is seen before the 10-K.
The return-to-provision agent compares each filed return with the provision and, for every difference, gives the current and deferred effect, the return line, the law that explains it and the rate-reconciliation category, with its confidence. The tax controller accepts, edits or sends it back with a reason code; the agent never books a true-up.
The auditor agent builds the quarter's request list before it is asked for and drafts a reply to each request that cites its workpapers. Nothing is shared without the tax controller's approval, and the auditor's view is read-only and limited to approved workpapers, with the same pins to the source.
Yes. The agents propose and explain; they never book an entry, move an item between categories, release a reserve or send anything to the auditor on their own, and below the 85% confidence floor they hand the item to a person. The tax controller signs the provision with a reason code and an e-signature, and the corporate controller accepts it into the close.
Yes. The disaggregation threshold, statutory rate, near-threshold warning, agent confidence floor, provision materiality, auditor attention line and annual effective rate method are settings. A change takes effect only when the VP Tax approves it, and every change is logged.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your entity list, account mapping, last year's provision and rate reconciliation — and it goes live once every quality gate has passed. We will walk you through it on your own trial balances first.
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