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Preparing Tax Returns
June 20, 2002

For many of the returns that John [another intern at Hasbro] and I prepare, the process is the same. I personally have been working with Hasbro Managerial Services (H.M.S.), and preparing the state returns for this corporation. H.M.S. is a subsidiary corporation of Hasbro, Inc., that deals primarily with payroll and managerial type activities. The preparation of these returns is relatively easy. There is, however, a whole process of gathering supporting documentation that goes into the preparation.

The process basically begins by locating the binders with the returns from the previous year and the binders that are set up for the current year (2001 returns) that already contain the application for extension for this year. After that we have to locate the information that goes along with each return and put it behind the appropriate tab in the binder; for example, we have to locate the instructions, the federal return, and other documents. Then we can start to prepare the return using the prior year return as a guide. 

The return forms we use are usually located in one of three places: (1) the CorpTax software, (2) E-FormsRS software, or (3) the Internet. For the state returns, most of the returns were prepared using CorpTax. This program is pretty easy to use once you prepare one or two returns. There is basically a main screen once you access the program, and from there you can choose what type of action you need. 

In preparing the returns, we use one of two options: report or amount. The report option basically gives you a listing of each of the state returns you will need for the particular corporation you are working with, and once you choose the state, it provides the form. From the form section you can choose which schedules and parts of the form you want to print as well as enter data on. Most of the data that we use is already in the database in different accounts and its only a matter of us locating the documents to support the data. If we need to enter data ourselves we have to go to the amount section and choose the account we want and enter the proper information. 

That is the basic process we take to prepare the returns electronically. Once we complete each of the appropriate forms, we print them out and do a self review of the work to make sure it is all accurate. This review copy will be submitted to a superior after it is completed by us. I also have to go through and reference much of the information on the face of the return to the supporting documentation I have located, and vice versa. The whole process can vary depending on the state, but for the most part it takes a few hours for each return from beginning to end. 

The review copy is submitted with a control sheet and all of the documentation, as well as the prior year return, to a superior for review. This superior will basically just review it and return it with any comments or corrections and sign off on the control sheet. Once the corrections are made the return has to be reviewed again later this summer by the manager for the as filed copy. 

For the most part I don't have to any [tax] research because all of the documentation is on location, its just a matter of finding the appropriate paperwork. However, if I was to do research on a particular issue, Hasbro uses the RIA system as opposed to the CCH system we used at PC.

Questions for Jim?

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