Tax returns for the prior year are typically filed in the current year. After filing tax returns, you must book a true-up for the difference between what was accrued in the prior year's provision and the actual amount on the tax returns. You book this true-up in the current year's provision.

 

There are several approaches to representing true-up adjustments. You can represent the true-up in the current year's provision by entering the true-up using the single dataset or a multiple dataset approach.