Bloomberg BNA Software - BNA State Tax Analyzer
Company: Bloomberg BNA Software, Arlington, VA
Entry Submitted By: Codey Communications
Company Description: Bloomberg BNA software products provide unique insight, actionable information, & smart tools in the areas of corporate tax, fixed assets, individual tax planning, & tax compliance resources. With category-leading software and top-rated technical support, BNA is the solution of choice for more than 70,000 professional firms & corporations of every size, including the IRS.
Nomination Category: New Product & Service Categories - Software
Nomination Sub Category: New Product or Service of the Year - Software - Financial Management Solution
Nomination Title: BNA State Tax Analyzer
Tell the story about this nominated product or service (up to 650 words). Describe its function, features, benefits, and performance to date:
On Oct. 1, The New York Times released pages from President Elect Trump’s Connecticut, New Jersey and New York 1995 tax returns, showing a $916 million loss, which could potentially cancel out federal income tax liability for up to 18 years. The news turned the spotlight on an often underutilized tax tool available to CFOs and their companies: state net operating losses (NOLs).
Relatively speaking, federal NOL rules are fairly straightforward making the calculation and use of NOLs on the federal level a manageable task. However, the ability to use them to offset state income tax liabilities is a much more difficult process. Limited resources compound the risks of missed opportunities, which impacts cash flow and financial statements.
That is where BNA State Tax Analyzer, the industry’s first multi-state, multi-year, multi-scenario state tax analysis tool for corporate income tax, now with support for NOLs from 1998 forward. Virtually every state has their own set of NOL rules. As a result, corporations often have to navigate filing multiple entities in multiple states, forcing them to deal with hundreds or even thousands of returns in a single year, with each filing requiring its own supporting schedule that could span 10 to 20 years.
Designed to address the cumbersome task of interpreting, analyzing and implementing state tax law changes (including NOL laws) in almost real time, BNA State Tax Analyzer is also the first solution to offer centralized state tax workpapers so tax teams no longer need to create & maintain separate spreadsheets for provision, compliance, tax audits & planning – reducing risk & saving valuable hours. With the ability to do what-if planning, tax provision analysis, quarterly estimates & tax audit responses in regards to their overall state income taxes and NOLs, this cloud-based solution delivers a full-audit trail, permissions control & automatic tax-law updates. The solution helps tax & accounting professionals keep current on tax code changes, and also enables them to accurately model out various tax scenarios including how to optimize NOLs before making critical business decisions & ultimately helps optimize cash tax.
By reducing risk and simplifying complex multistate, multiyear, and multi-entity NOL calculations, NOL Manager supports corporations in tax planning, accelerates tax audit closure, reduces risks associated with spreadsheet use, and helps optimize cash tax.
Recently named one of Accounting Today’s Top New Products for 2016, BNA State Tax Analyzer was designed to address the state income tax modeling and analysis needs of the Global 2000. The new BNA NOL Manager feature delivers on customer demands for an easier way to manage complex state net operating losses and is available now.
In bullet-list form, briefly summarize up to ten (10) of the chief features and benefits of the nominated product or service (up to 150 words).
BNA State Tax Analyzer automatically computes the generation, utilization, carrybacks, and carryforwards of state net operating losses across multiple years and multiple scenarios. The software helps users save time, increase accuracy, and reduce risk by enabling them to:
• Manage the burn-down of NOL assets and impacts to cash tax
• Compute and document valuation allowances to withstand internal and external scrutiny
• Show impacts of IRS and state tax audits on NOLs
• Estimate taxes for financial statements and quarterly estimates
• Calculate and track NOLs from the year 1998 forward for pre- and post-apportionment states
• Forecast taxes including built-in future enacted tax law