DMI48FAQs

States

Why are the interest results in DMI48  for TN and OR different from those computed in other software?

TN and OR have odd rules for the computation of interest,. In the case of OR there is an interest increase if the balance is not paid within 30 days, we default the computations to not include the OR rate bump. In the case of TN the interest rate for an adjustment is set based on the date of assessment. As we have no way of knowing what that date is we use the rate table with all fluctuations, this will level the swings from quarter to quarter for reserve purposes.  Please note that custom rate tables can be established via the use of a Base Case in InterestNet. .

Does the system calculate state issues net of federal benefit?

Yes, to enable the calculation of Federal benefit related to state tax and interest as well as Federal interest, enter the appropriate percentages in the Tax Effecting table on the Jurisdiction/Periods screen.  The Tax Effect Calculation Report has been added so that you can review the benefit calculations. Make sure to set the overall Tax Effecting Method in the General parameters tab to indicate whether you want the benefit posted to Tax Only or to Tax and Interest.

Does the system have a table that includes state interest rates? If so, does this table get updated with state interest rates the way the federal table gets updated?

Federal and State interest tables are provided with DMI48 and InterestNet. Federal and state interest rate updates will be provided as part of the system updates as they become available. Users can also download interest rate updates directly from this website.  Save the .INT file to the your computer, then use the Import feature from  Utilities>Interest Rates.

Will there be a way for users to import state tax rates into the FIN48 software instead of having to enter the rate for each jurisdiction and year?

The default state tax rates will be included with an update to the software each year.

We understand that the software has been licensed for federal issues, but how are the other jurisdictional calculations run; simple interest vs. compound? Does the simple interest calculation in DMI48 for states include compound interest for relevant states?

State jurisdictions are computed based on each state’s rules; most use compounded interest. However, there are still some jurisdictions with simple rates (some switch back and forth, i.e., MA). Netting can be performed in DMI48 for States jurisdictions with the use of a Base Case developed in InterestNet, even though there is no state that affirmatively authorizes it.  

Does the system have separate interest calculations for state contingencies and how are the rates/details determined?

Separate interest calculations are done for each jurisdiction based on the rates for that jurisdiction.

Tax and Interest Software

FIN 48 Software

FIN 48 software for managing your uncertain tax positions and calculating interest on federal, state and foreign taxes.

Interest and Penalty Software

DMI's interest and penalty software is a single product solution for federal and state interest computations, including global interest netting.

Services

FIN 48 Implementation Services

Conversion of FIN 48 and reserve UTP data for use with DMI48 software.

Resources

Research links to relevant topic information including Schedule UTP.

Video Demo

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DMI48 Software Demo

UTP/FIN48 compliance and related interest computation software demonstration.
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InterestNet Software Demo

Interest and penalty computation software demonstration.
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Interest for FIN 48

Learn why interest matters for FIN 48.
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