Setting Up ONESOURCE Income Tax for Insurance Returns

Setting Up ONESOURCE Income Tax for Insurance Returns

Setting up the system for insurance returns begins like any other return. You must first start in the Binder list, complete the necessary set up of charts, and assign the charts to binders. Later, your work continues in the Tax Accounting System importing preliminary balances, making adjustments, and viewing the working trial balance and reports. Finally, after computing the binder, you finalize the return in Organizer.

The NAIC Annual Statement Reconciliation screen allows you to review account detail in NAIC line format. There are also State Taxable Income (TI) Workpapers for insurance binders.

You can also use the Tax Accounting System Schedule M-3 functionality for insurance returns by creating Schedule M-3 Line Coding for 1120L and 1120PC, mapping your federal accounts to a specific Schedule M-3 chart, which then automatically populates the form.

How to Set Up ONESOURCE Income Tax for Insurance Returns

• Create a Tax Combination Chart.
• Import TCCs into the new Chart of TCCs.
• Verify TRC and TCC are applicable to 1120L and 1120PC returns.
• Create a Federal Chart of Accounts.
• Create Charts of Adjustments (book, reclassification, and tax) using those Charts of Accounts.
• Assign charts to binders.
• Import balances and adjustments either within an individual binder or using batch import.
• Create a NAIC Line Mapping Chart.
• Rollover or create binders.
• Create State Taxable Income Forms Mapping Charts to map state modifications to state income tax forms and schedules. Four states (New York, Mississippi, Michigan, Oregon) have insurance specific forms to file for insurance companies. These states will use an insurance type of Forms Mapping Chart.

Chart and Adjustment Information

Refer to the following chapters in the ONESOURCE Income Tax User Guide for more information on how to set up charts and enter balances and adjustment data.

Application Area	Tasks
Federal Charts	Creating and importing into the following types of charts: Chart of Tax Combination Codes with TRCs applicable to 1120L and 1120PC returns Chart of Federal Accounts Chart of Federal Adjustments Schedule M3 Line Coding and Mapping NAIC Line Mapping State Taxable Income Workpaper Forms Mapping Chart for Insurance (New York, Mississippi, Michigan, Oregon, insurance specific)
Tax Accounting System (TAS)	Create binders to hold data for an entity for a year Enter balance and adjustment data View the WTB and reports View NAIC Annual Statement Reconciliation Insurance Workpapers (Data is grouped and used for the tax return.)
State Processing	State Taxable Income Workpaper System

ONESOURCE Income Tax Insurance Functionality

The Tax Accounting System has an Insurance NAIC Annual Statement Reconciliation screen for 1120L and 1120PC. The screen displays accounts grouped by the NAIC Annual Statement Lines for the Balance Sheet and Statement of Income. The workpapers are accessible from the TAS navigation tree as NAIC Annual Statement Reconciliation. The screen has two tabs, Balance Sheet and Statement of Income (1120PC) or Summary of Operations (1120L) to display the views. The views are expandable to show account and amount detail and are “read only.” You cannot enter data.

 

 

 

1120/Using_TAS.htm/TY2021

Last Modified: 08/10/2021

Last System Build: 01/31/2023

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