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Tax Provision Pro — Official User Manual & CPA Guide

Multi-Client • Multi-Entity TB • Smart Tax-Law Auto-Classifier • Cannabis IRC §280E • 6-Tab Live-Formula Excel

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ASC 740 Provision-in-a-Box Cannabis IRC §280E & §471 COGS 50-State Nexus & Decoupling

Complete Operating Manual & Workpaper Reference

This manual walks CPAs, Tax Directors, and Controllers through preparing multi-entity corporate and cannabis MSO tax provisions (`ASC 740`), Schedule M-1/M-3 bridges, Permanent (`WP 1.1`) and Temporary (`WP 1.2`) adjustment schedules, 50-state apportionment (`StateMatrix`), and exporting the 6-tab live-formula Excel (`.xlsx`) audit binder at https://taxprovisionpro.com.

Section 01 • Fast-Track Onboarding

1. 5-Step Workflow from Client Trial Balance to Audit Binder

STEP 1
Select or Add Client

Use the Saved Clients Portfolio dropdown, click + New Blank Client, or load the 🌿 Cannabis MSO or $25M SaaS preset.

STEP 2
Set Tax Law Regime

Select Corporate / SaaS (Standard IRC) or 🌿 Cannabis MSO (IRC §280E + §471 COGS) so the auto-classifier applies the right tax rules.

STEP 3
Load Multi-Entity TB

Add legal entities (`ENT-1`, `ENT-2`, `ENT-3`) and enter or CSV-import Trial Balance accounts. Click ⚡ Auto-Classify All Accounts.

STEP 4
Run Perm & Temp Tabs

Open sub-tabs WP 1.1 (Perm & §280E) and WP 1.2 (Temp M-1) to calculate detailed adjustments that sync live to the TB.

STEP 5
Verify $0.00 Tie & Export

Confirm `TIE-OUT: $0.00` in the top KPI ribbon and click Export 6-Tab Live Formula Excel (.xlsx).

Section 02 • Multi-Client Portfolio Manager

2. Saving & Switching Multiple Clients

  • Saved Clients Portfolio Dropdown: Located in the top intake bar. Lets you switch between any saved client in your browser (`Apex Cloud Technologies`, `GreenLeaf Cannabis MSO Holdings`, or any custom client you add).
  • + Save as New Client: Prompts for a new client name and saves a complete snapshot of all entities, Trial Balance rows, `WP 1.1` / `WP 1.2` calculator schedules, and 50-state apportionment inputs.
  • Auto-Save on Every Edit: Whenever you edit any number or account for the active client, your changes are automatically persisted to your browser portfolio.
  • Save Backup (.json) / Load (.json): Downloads a standalone JSON file of the active client for archival in your workpaper binder or sharing across computers.
Section 03 • Multi-Entity Trial Balance Workbooks

3. Managing Multiple Legal Entities & Consolidation

  • Consolidated Group View: Displays all Trial Balance accounts across every legal entity and rolls them up into consolidated Pre-Tax GAAP Book Income (`WP 1.0`) and Consolidated Federal Taxable Income (`Form 1120, Line 30`).
  • Entity-Specific Workbook View: Click any entity button (`ENT-1`, `ENT-2`, `ENT-3`) in the MULTI-ENTITY TB bar to view and edit only that legal entity's Trial Balance rows.
  • + Add Legal Entity / Rename / Delete: Add new legal entities (e.g., separating a Cannabis Cultivation LLC from a Retail Dispensary Corp. for `IRC §280E` isolation) and assign any TB row to any entity via the per-row dropdown.
Section 04 • Smart Tax-Law Auto-Classifier (`⚡ Auto-Law`)

4. How Account Names Automatically Map to `M-1 Type`, IRC Citations & Tax Formulas

When you type an account name in `WP 1.0`, upload a Trial Balance CSV, or click ⚡ Auto-Classify All Accounts by Tax Law, the engine matches keywords in the account name against federal tax law:

Account Name Keywords Auto M-1 Type Statutory IRC Authority Default Book-to-Tax Calculation Rule
"280E", "Dispensary", "Budtender", "Retail Cannabis", "Storefront" PERM IRC §280E 100% Permanent Federal Disallowance (Decoupled states deduct on StateMatrix)
"Cultivation", "Grow", "Harvest", "Extraction", "471", "COGS" NONE IRC §471(a) / §1.471-11 100% Deductible Cost of Goods Sold ($0 M-1 adjustment)
"Meals", "Food", "Dining" PERM IRC §274(n) 50% Permanent Disallowance (`50%` of Book Expense added back)
"Entertainment", "Country Club", "Lobbying", "Political" PERM IRC §274(a) / §162(e) 100% Permanent Disallowance (`100%` of Book Expense added back)
"Fine", "Penalty", "Penalties", "Officer Life Insurance" PERM IRC §162(f) / §264(a) 100% Permanent Disallowance (`100%` of Book Expense added back)
"ISO", "Incentive Stock", "Stock-Based Comp", "SBC" PERM IRC §421(a)(2) / §162(m) 100% Permanent Disallowance for statutory ISO expense / §162(m) excess
"R&D", "Research", "Software Eng", "174" TEMP IRC §174(a)(2)(B) 90% Year-1 Net M-1 Addback (100% capitalized less 10% mid-year Y1 amortization)
"Deferred Revenue", "Unearned Revenue", "Advance Payments" TEMP IRC §451(c) Temporary M-1 Addition for current-year net deferral increase (creates DTA)
"Accrued Bonus", "Accrued Vacation", "Accrued PTO" TEMP IRC §404(a)(11) / §461(h) Temporary M-1 Addition for bonus unpaid > 2.5 months after year-end (creates DTA)
"Bad Debt", "Allowance for Doubtful", "Reserve" TEMP IRC §166(a) Temporary M-1 Addition for GAAP provision in excess of specific write-offs (DTA)
"Depreciation", "MACRS", "Fixed Asset", "168(k)" TEMP IRC §168(k) & §167 Temporary M-1 Deduction where Tax MACRS/Bonus exceeds Book straight-line (DTL)
"Interest Expense", "163(j)" TEMP IRC §163(j) Temporary M-1 Addition for interest exceeding 30% Adjusted Taxable Income cap (DTA)
Section 05 • WP 1.1 & WP 1.2 Calculator Tabs

5. Dedicated Permanent (`WP 1.1`) & Temporary (`WP 1.2`) Tabs

Instead of manually calculating adjustments offline, Tab 1 includes two dedicated sub-tabs that sync directly into the Trial Balance:

  • WP 1.1 (Permanent M-1 & Cannabis §280E Tab): Computes `50%` Meals (`§274(n)`), `100%` Entertainment (`§274(a)`), Lobbying (`§162(e)`), Fines (`§162(f)`), Officer Life (`§264`), ISO Stock Comp (`§421`), and Cannabis `IRC §280E` Retail Wages/Rent/Marketing net of `§1.471-11` indirect COGS absorption.
  • WP 1.2 (Temporary M-1 Adjustments Tab): Computes `§451(c)` Deferred Revenue rollforward, `§404` Accrued Bonus 2.5-month rule, `§166` Bad Debt reserve, `§168(k)` Book vs. Tax Depreciation, `§174` Domestic (5-Yr) & Foreign (15-Yr) R&D capitalization waterfall, and `§163(j)` 30% ATI interest limitation.
Section 06 • 6-Tab Live-Formula Excel Export

6. Inside the Exported 6-Tab `.xlsx` Audit Binder

Clicking Export 6-Tab Live Formula Excel (.xlsx) downloads an Excel workbook with live cross-sheet formulas:

  1. TB_M1_Bridge — Multi-Entity TB pulling live formulas `=Perm_M1_Calc!...` & `=Temp_M1_Calc!...`
  2. Perm_M1_Calc — Dedicated Permanent M-1 & Cannabis `IRC §280E` Calculator Tab
  3. Temp_M1_Calc — Dedicated Temporary M-1 & DTA/DTL Rollforward Calculator Tab
  4. StateMatrix_Apport — 50-State Nexus, Apportionment & `§174`/`§168(k)`/`§280E` Decoupling
  5. ASC740_Provision — Current/Deferred Tax Summary, DTA/DTL Rollforward & GL Entry
  6. ETR_Reconciliation — Statutory 21.00% to Effective Tax Rate Proof (`$0.00` Variance)