Federal Corporate Tax
Computation Services
Your issue
Companies invest substantial resources to support their
tax positions during the course of an Internal Revenue
Service (IRS) examination. Often, examination settlement
discussions can be more productive when the impact of
proposed adjustments on tax liability and tax attributes
is known. Unfortunately, determining this impact is often
difficult, especially for taxpayers with multiple tax credits,
alternative minimum tax (AMT) issues, capital losses, or net
operating losses (NOLs) — all of which interact and impact
the final federal tax result.
Deloitte can help.
Deloitte’s Tax Controversy Services
team provides tax computation
assistance to taxpayers in analyzing
potential changes proposed in an
IRS examination.
Our approach
Deloitte’s Tax Controversy Services team provides
tax computation assistance to taxpayers in analyzing
potential changes proposed in an IRS examination. Tax
computations can be used to understand the impact of
proposed IRS audit adjustments, NOL carryforwards or
carrybacks, or other adjustments. Specifically, Deloitte
professionals can analyze proposed adjustments to:
• Calculate U.S. consolidated corporate income tax.
• Perform tax calculations for multiple years and
multiple scenarios.
As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries
• Recalculate the accuracy of IRS calculations on U.S.
corporate tax returns.
• Calculate the impact on complex tax attributes, including
NOLs, federal tax credits (FTCs), AMT, general business
credits (GBCs), and charitable contributions.
• Compare side-by-side scenarios for alternative
settlement options.
• Provide documentation for tax compliance with tax
reporting requirements.
• Facilitate state income tax calculations and amended
state tax return preparation.
• Provide tax representation and advice during the IRS
audit process, particularly when Joint Committee review
is involved.
Deloitte’s computation process begins with the original tax
return filing for the years under examination. Subsequent
tax adjustments (amended returns or tentative carryback
claims) are then “layered on” to provide a starting point,
which reflects the company’s current filing position
with the IRS. Once the baseline is established, multiple
case scenarios using any combination of changes to the
underlying tax pattern can be prepared.
Taxpayers are often interested in the total federal cost of a
settlement, including the IRS interest and penalty impact.
Pairing tax computation services with our Tax Interest
Analyzer process provides visibility to the tax, penalty, and
interest impact of a given tax settlement option.
Example: Three-year audit cycle
In Year 7, the IRS proposes a change to the timing of a
depreciation adjustment: $1 million to be disallowed in
Year 1, but allowed in Year 3. Before the taxpayer agrees
to the proposed adjustment, it wants to understand the
impact of this change on both Years 1 and 3. After taking
into consideration all of the facts of the case, the following
is a summary of the impact of the changes.
 In addition, the team offers:
Taxable year subject Year 1 Year 3
to audit adjustment • One of the largest national tax controversy practices in
Taxable income change $1,000,000 <$1,000,000> the United States.

Regular tax liability $350,000 <$340,000> • Professionals with diverse backgrounds, including former
change (using relevant senior IRS executives, chief counsel officials, revenue
tax rate) agents, group managers, private industry executives, and
technology specialists.
Change in FTC utilized <$350,000> $0
• Innovative, Web-based technology, supporting tools,
Change in GBC utilized <$0> <$140,000>
and related processes — Tax Controversy Manager and
Net tax liability change $0 <$200,000>
Tax Interest Analyzer — to help you prepare for, monitor,
Interest receivable $0 <$21,858> and manage your organization’s tax controversies and
(assume refund was the calculations associated with them.
paid on 6/30 of Year 7)
• Deloitte’s Washington National Tax practice, a dedicated
team of technical specialists who help clients stay
Because of the impact on the foreign tax credits and the informed on tax legislation and regulations and the
general business credits, the overall result in this illustration potential impact on their businesses.
is favorable. Understanding the bottom-line impact before
• Specialists across numerous industries to bring industry-
agreeing to the specific issues provides a company with
specific knowledge and experience.
information to enable a more effective settlement of
• Timely updates on IRS matters through Deloitte’s
a case.
publication, IRS Insights at: www.deloitte.com/us/tax/irs.
The Deloitte difference • Access to the broader resources of the member firms
Our Federal Corporate Tax Computation Services are of Deloitte Touche Tohmatsu Limited, including tax,
delivered by a team of tax controversy professionals, financial advisory services, and consulting.
including specialists from our Tax Interest Analyzer group,
with extensive experience working with complex U.S. For more information
corporate income tax, penalty, and interest computations. To learn more about how our Tax Controversy
Using their knowledge and experience, this team can: Services professionals can assist you, contact us at
tcs@deloitte.com or visit us at www.deloitte.com/us/tcs.
• Prepare tax computations or analyze client-prepared
tax computations.
• Create real-time IRS examination or appeals
tax computations.
• Analyze IRS-prepared tax computations.
• Prepare or analyze tax penalty and interest computations
Our approach endeavors to provide reliable tax
computation services to support a company’s decision-
making process for evaluating the consolidated tax impact
of proposed examination adjustments.

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Member of Deloitte Touche Tohmatsu Limited