Above/Below the Line

Interest and Penalties for Uncertain Tax Positions amounts can be treated as either Above the Line or Below the Line, depending on the determined accounting method.

Above the Line

Interest and penalties calculated for Uncertain Tax Positions Application amounts are treated as accrued interest and accrued penalties.

Below the Line

Interest and penalties calculated for Uncertain Tax Positions Application amounts are treated as an additional tax expense. If you expect to deduct the interest when it is paid, you can provide for the interest, net of Federal or State benefit by entering the tax rates in the Fed and State Tax Rate - Interest fields.