net operating loss, tax tool for tracking state net operating losses

Solutions

State NOL Insight

Deloitte’s State net operating loss (NOL) Insight tax tool solution is an intuitive, web-interfaced, database-powered solution that captures a taxpayer’s state net operating loss-related data and uses that data flexibility for tax planning, compliance and provision purposes.

State NOL Insight solutions video

State NOL Insight has been developed by state tax net operating loss and technology specialists to help tax professionals take control over their company’s state NOLs—providing increased transparency into a company’s state NOL balances, mitigating risk through the use of a database driven platform, and improving the ability to plan in regards to state NOL limitations, utilization and expirations.

State tax challenges

​Coming out of the recent recession many companies find themselves with significant state net operating losses. These state net operating losses (NOLs) may reside across a number of legal entities and filing groups with respect to numerous states, each with their own unique rules regarding the generation, limitation, and utilization of these NOLs. Reorganizations, M&A activity, and changes in state NOL balances resulting from IRS or state audits introduce additional complexities as taxpayers often struggle to maintain accurate, current state NOL balances relative to these events.

Adding to these challenges, companies are frequently utilizing NOL tracking spreadsheets that over time may have grown to enormous size and complexity, introducing potential risk and increased administrative burden into both the tax return compliance and ASC740 tax provision processes.

For tax professionals seeking to track and determine that their company has properly utilized these state NOLs, a daunting task may often await.

A tax tool for tracking state net operating losses

Unlike traditional approaches to state NOL tracking and reporting, Deloitte’s State NOL Insight tax tool uses an effective SQL database platform that provides a single, controlled location in which a company’s state NOL data resides. Secure, remote multiuser access is enabled through a user-friendly, Web interface. As a result, the involvement of the taxpayer's IT department is typically not required.

Deloitte’s State NOL Insight tax tool is highly flexible, providing a user-friendly interface to rules and logic that govern calculations and computations. Tax rulesets are maintained separately from computations, updated on a regular basis and available for the user to leverage.

Key features include:

  • Centralized state net operating loss calculation tracking and reporting, including generation, utilization and expiration, in total and by state, entity and year
  • Effective data analytics and visualization capabilities allow users to more quickly focus on the big picture—such as total net operating loss or Deferred Tax Asset balances by state or entity—or to look deeper into the underlying details.
  • Separate tracking of state net operating losses for tax provision purposes (only available to non-attest clients)
  • Scenario planning including re-computing state net operating loss amounts or valuation allowance needs (only available to non-attest clients)
  • Ability to efficiently enter and track the impact of federal and state audits/adjustments on net operating loss balances
  • Ability to input and track IRC Sec 382, SRLY and state jurisdiction limits in computing net operating loss utilization
  • Standard and customized ad-hoc reporting

Deloitte's State NOL Insight tax tool provides companies with the type of visibility into, and control over, their state NOL data that they would expect in today's era of responsive and scalable databases, analytics, scenario analysis and visualization technology.

Why Deloitte

Our State NOL Insight tax tool has been developed by state and local professionals specializing in state tax net operating loss issues and is derived from and aligned with our clients' business goals and needs.

State NOL Insight is supported by Deloitte's Multistate Tax team—one of the largest state and local tax practices in the United States.

Through the solution implementation process we strive to limit the time required by taxpayer personnel, reconcile the solution data to the taxpayer’s historic net operating loss balances and highlight potential issues or considerations regarding state net operating loss balances or computations.

Contacts

 

Andy Gold
Partner
Multistate Technology and Innovation
Houston, TX
+1 713 982 3598

 

Ty Ternet
Senior Manager
Dallas, TX
+1 214 840 1013

 

Shonda Bajorek
Manager
Cincinnati, OH
+1 513 784 7105 

 

David Thies
Senior Manager
McLean, VA
+1 703 251 1010

 

Brian Sullivan
Managing Director
Atlanta, GA
+1 404 220 1673

 

 

 

Get in touch

Andy Gold

Andy Gold

Partner, Multistate Technology and Innovation

Andy is a partner in Deloitte Tax LLP’s Multistate Tax Services practice. He is responsible for steering Multistate Tax Technology & Data Analytics Strategy and transforming the ways in which Deloitte... More