System and method for preparing a tax liability projection

A method for preparing tax liability projections, comprising:

• obtaining, by a processor, a previously filed tax return comprising tax data;
• generating, by the processor, a tax assumption for a future year related to a line item of the previously filed tax return;
• receiving, by the processor, an update comprising a first new tax legislation and a second new tax legislation impacting the line item of the previously filed tax return;
• receiving, by the processor, a selection from a user of the first new tax legislation and the second new tax legislation;
• calculating, by the processor, a first impact of the first new tax legislation and a second impact of the second new tax legislation;
• calculating, by the processor, a first tax liability projection based on the tax data, the tax assumption, the first impact of the first new tax legislation, and the second impact of the second new tax legislation;
• receiving, by the processor, a de-selection from the user of the second new tax legislation that excludes the second impact of the second new tax legislation from the first tax liability projection;
• recalculating, after receiving the de-selection and by the processor, the first tax liability projection based on the tax data, the tax assumption, and only the first impact of the first new tax legislation to generate a second tax liability projection;
• preparing an amendment to modify the previously filed tax return based on the second tax liability projection;
• and
• filing the amendment with a tax authority.

A computer readable storage medium storing instructions for preparing tax liability projections, the instructions executable on a processor and comprising functionality for:

• obtaining a previously filed tax return comprising tax data;
• generating a tax assumption for a future year related to a line item of the previously filed tax return;
• receiving an update comprising a first new tax legislation and a second new tax legislation impacting the line item of the previously filed tax return;
• receiving a selection from a user of the first new tax legislation and the second new tax legislation;
• calculating a first impact of the first new tax legislation and a second impact of the second new tax legislation;
• calculating a first tax liability projection based on the tax data, the tax assumption, the first impact of the first new tax legislation, and the second impact of the second new tax legislation;
• receiving a de-selection from the user of the second new tax legislation that excludes the second impact of the second new tax legislation from the first tax liability projection;
• recalculating, after receiving the de-selection, the first tax liability projection based on the tax data, the tax assumption, and only the first impact of the first new tax legislation to generate a second tax liability projection;
• preparing an amendment to modify the previously filed tax return based on the second tax liability projection;
• and
• filing the amendment with a tax authority.