P4079: Nextel - Business Requirements: Tax

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Government Exhibit 4079
Confidential and Proprietary


Business Requirements - Tax

Tax Function: # of Business
In Scope or Out of
Scope for Phase I?
301 Income & Franchise Tax Prep 12 In scope
302 Financial Reporting 5 In scope
303 Point of Sale 1 Out of scope
304 Service 3 Out of scope
305 Use Tax 22 In scope
306 Planning 7 Out of scope
307 Incentives 0 Out of scope
308 Research 0 Out of scope
309 Accruals 1 In scope
310 Sales & Transaction Tax Report Filings 16 In scope
311 Reconciliations 4 Out of scope
312 Adjustments 5 Out of scope
313 Unclaimed Property 1 In scope
314 Audits and Litigation 1 In scope
315 Properly Tax 15 In scope
316 Assessment Review & Controls 1 Out of scope
317 Payments & Verification 3 Out of scope
318 Other __________7 Out of scope
  Subtotal Tax Function 104

Nextell - 000270

Tax Income & Franchise Tax
ID Function Sub-Function Requirement
301.00.001 Income & Franchise Tax Prep   Provide for multiple tax depreciation schemes for fixed assets.
301.00.002 Income & Franchise Tax Prep   The ability to record intangible assets in the Fixed asset module.
301.00.003 Income & Franchise Tax Prep   There should be enough organizational structure flexibility to enable the reporting of full financial results (Trial Balances) for each legal entity represented in the ERP system
301.00.004 Income & Franchise Tax Prep   The chart of accounts should be capable of providing detail for tax relevant reporting and Schedule M-1 identification. Examples include the ability to add tax relevant accounts (or sub-accounts) or the ability to capture tax specific identifiers at the transaction level. This will allow sorting of transactions in an account for tax specific data needs.
301.00.005 Income & Franchise Tax Prep   The ability to provide details about related party transactions (both Tor consolidated and non-consolidated related parties). Transactions include all revenue items, purchases, expenses, and period-end balances (A/R and A/P).
301.00.006 Income & Franchise Tax Prep   Provide various jurisdictional information for state income tax purposes, such is sales by ship from location, sales by ship to location, fixed assets by location, inventory by location, salary and wages by location, rental expenses by location
301.00.007 Income & Franchise Tax Prep   Income statement and balance sheet forecasts at a legal entity level.
301.00.008 Income & Franchise Tax Prep   Ablity to identify and isolate expenses incurred for reseach and development
301.00.009 Income & Franchise Tax Prep   Process Income & Other Taxes
301.00.010 Income & Franchise Tax Prep   Submit Income & Other Taxes Filings
301.00.011 Income & Franchise Tax Prep   Process Income & Other Taxes Payments
301.00.012 Income & Franchise Tax Prep   File & Retrieve Income & Other Taxes Records

Nextell - 000271

Tax Financial Reporting
ID Function Sub-Function Requirement
302.00.001 Financial Reporting   Ability to easily report adjustments to reflect temporary and permanent differences, taxable income and net interest.
302.00.002 Financial Reporting   Tax Reports must be easily run and produced, on an as needed basis.
302.00.003 Financial Reporting   To facilitate Management and Tax reporting, the Location segment will be populated by looking up the Cost Center/Location Relationship per the Entity Control System (ECS).
302.00.004 Financial Reporting   The ability to forecast tax liabilities and the subsequent impact on a corporation's business decisions.
302.00.005 Financial Reporting   The ability to maintain tax data for employee, creating tax withholding methods, calculating and adjusting tax balances, and processing lax remittances to government agencies.

Nextell - 000272

Tax Point of Sale
ID Function Sub-Function Requirement
303.00.001 Point of Sale   Ablity to calculate (and retain electronically) sales taxes at the point of sale and to record the relevant tax for the correct sales tax jurisdiction, including the printing of the sales tax on the sales receipt

Nextell - 000273

Tax Service
ID Function Sub-Function Requirement
304.00.001 Service   Ability to calculate sales, use, value-added, goods and services, gross receipts, consumption and any other statutory taxes for invoice processing of fixed asset or expensed items.
304.00.002 Service   Provide data in a sufficient level of detail to make tax decisions for sales to customers and purchases of goods and services.
304.00.003 Service   Provide a means to identify services and products.

Nextell - 000274

Tax Use Tax
ID Function Sub-Function Requirement
305.00.001 Use Tax   The organizational structure in the system should consider the legal entity structure of your company, e.g., Legal Entity and filing requirements for separate sales lax reporting requirements by legal entity.
305.00.002 Use Tax   The organizational structure in the system should allow specific geographical locations to be identified, e.g., departments = a geographical location.
305.00.003 Use Tax   The chart of accounts should be capable of providing detail for tax relevant reporting for sales and use tax purposes.
305.00.004 Use Tax   Provide the ability to assign jurisdictional information such as customer, plant, cost center, material numbers, etc.
305.00.005 Use Tax   The accounts receivable, accounts payable, purchasing and general ledger functions should be capable of functioning with use tax system.
305.00.006 Use Tax   Provide an audit file that can interface with an external sales.
305.00.007 Use Tax   Provide a method of categorizing or classifying groups of data to allow products and customers to be grouped together when determining logical exemption classifications.
305.00.008 Use Tax   Ensure Use Tax Compliance
305.00.009 Use Tax   Process Use Tax
305.00.010 Use Tax   Collect Commercial Transaction Information
305.00.011 Use Tax   Maintain Use Tax Tables
305.00.012 Use Tax   Reconcile Use Tax Accounts
305.00.013 Use Tax   Research & Resolve Issues
305.00.014 Use Tax   Submit Use Tax Filings
305.00.015 Use Tax   Run Report
305.00.016 Use Tax   Complete Use Tax Form
305.00.017 Use Tax   Submit Use Tax Form
305.00.018 Use Tax   Compile & Submit Sates Specific Reports
305.00.019 Use Tax   Process Use Tax Payments
305.00.020 Use Tax   Receive Use Tax Filings & Payments
305.00.021 Use Tax   File & Retrieve Use Tax Records
305.00.022 Use Tax   The ability to collect information on and reporting use tax.

Nextell - 000275

Tax Planning
ID Function Sub-Function Requirement
306.00.001 Planning    Support material requirements planning for strategic and annual planning
306.00 002 Planning   Support user-defined planning horizons and lead times for each item
306.00.003 Planning   Support forward and backward planning algorithms
306.00.004 Planning   Support time-phased planning.
306.00.005 Planning   Support backward planning and time phased sourcing
306.00.006 Planning   Support real-time planning adjustments
306.00.007 Planning   Support manual planning adjustments

Nextell - 000276

Tax Incentive
ID Function Sub-Function Requirement
307.00.001 Incentives     

Nextell - 000277

Tax Incentive
ID Function Sub-Function Requirement
308.00.001 Research     

Nextell - 000278

Tax Accruals
ID Function Sub-Function Requirement
309.00.001 Accruals    Ability to process month-end expense accruals and build the associated journal entries.

Nextell - 000279

Tax Sales & Transaction Tax
ID Function Sub-Function  Requirement
310.00.001 Sales & Transaction Tax Report Filings   The ability to produce Tax reports on a Legal Entity and a Consolidated basis.
310.00.002 Sales & Transaction Tax Report Filings   Ability to validate all applicable sales, use and other statutory taxes against the tax name and rate tables.
310.00.003 Sales & Transaction Tax Report Filings   Ensure Sales Tax Compliance
310.00.004 Sales & Transaction Tax Report Filings   Process Sales Tax
310.00.005 Sales & Transaction Tax Report Filings   Maintain Sales Tax Tables
310.00.006 Sales & Transaction Tax Report Filings   Reconcile Sales Tax Accounts
310.00.007 Sales & Transaction Tax Report Filings   Research & Resolve Issues
310.00.008 Sales & Transaction Tax Report Filings   Submit Sales Tax Filings
310.00.009 Sales & Transaction Tax Report Filings   Run Report
310.00.010 Sales & Transaction Tax Report Filings   Complete Sales Tax Form
310.00.011 Sales & Transaction Tax Report Filings   Submit Sales Tax Form
310.00.012 Sales & Transaction Tax Report Filings   Compile & Submit Country Specific Reports
310.00.013 Sales & Transaction Tax Report Filings   Process Sales Tax Payments
310.00.014 Sales & Transaction Tax Report Filings   Receive Sales Tax Filings & Payments
310.00.015 Sales & Transaction Tax Report Filings   File & Retrieve Sales Tax Records
310.00.016 Sales & Transaction Tax Report Filings   The ability to report sales taxes including federal and state.

Nextell - 000280

Tax Reconciliations
ID Function Sub-Function Requirement
311.00.001 Reconciliations   The business requirement is that each entity within all regional instances must reconcile their feed to the balances that will be contained in the reporting sets of books.
311.00.002 Reconciliations   Reconcile Intercompany balances by transactional currency across all Legal Entities
311.00.003 Reconciliations   Reconcile balances between the company's parent's investment in subsidiary (at cost only) and the related company's Subsidiary's Equity accounts. This must be done on a USD currency basis only.
311.00.004 Reconciliations   Tax and General Ledger would use same chart of accounts.

Nextell - 000281

Tax Adjustments
ID Function Sub-Function Requirement
312.00.001 Adjustments   Adjustments must be able to be segregated into permanent differences, temporary differences and other adjustments.
312.00.002 Adjustments   The ability to have payroll adjustments reflected in correct pay period.
312.00.003 Adjustments   The ability to apply post payroll corrections for rates, taxes, and other payroll configuration data based on effective date of the correction: with all periods allowances, deductions, being adjusted appropriately.
312.00.004 Adjustments   The ability to automatically reverse a check with an audit trail.
312.00.005 Adjustments   The ability to accumulate and track deduction arrearages and implement a systematic recovery/ repayment plan.

Nextell - 000282

Tax Unclaimed Property
ID Function Sub-Function Requirement
313.00.001 Unclaimed Property   Ablity to track escheatable items that must be remitted to the states after specific time periods, including unclaimed vendor checks, customer refunds, and other abandoned property

Nextell - 000283

Tax Audits and Litigation
ID Function Sub-Function Requirement
314.00.001 Audits and Litigation   Ablity to produce electronic records in support of various state and federal audits, including the production of transaction level electronic flat files for all open tax periods

Nextell - 000284

Tax Property Tax
ID Function Sub-Function Requirement
315.00.001 Property Tax   For Fixed Assets provide the following data elements: description, type, cost, net book values, age, life factors, modifications, utilization, replacements, maintenance, location, retirements, idle equipment, rebuilds, relocations, and exemption categories.
315.00.002 Properly Tax   For Inventory provide the following data elements: volume, quantity, cost, detail, turnaround, shelf time, spoilage/shrinkage, sales, ultimate destination, obsolete inventory, finished goods, supplies, and location
315.00.003 Property Tax   For Real Estate provide the following data elements: digital photo storage, cost, acquisition date, legal description, fair market values, appraisal information, and improvement data.
315.00.004 Property Tax   For Leased Equipment provide the following data elements: lessor/lessee, description, location, terms, purchase option, and liability.
315.00.005 Property Tax   For Leased Real Estate provide the following data elements: lessor/lessee, description, terms, financial data, rental income, payment, expenses, liability, and purchase option.
315.00.006 Property Tax   Ensure Property Tax Compliance
315.00.007 Property Tax   Process Property Tax Reporting
315.00.008 Property Tax   Run Exception Reports
315.00.009 Property Tax   Review & Resolve Errors
315.00.010 Property Tax   Review & Approve Filings
315.00.011 Property Tax   Submit Property Tax Filings
315.00.012 Property Tax   File & Retrieve Property Tax Records
315.00.013 Property Tax   The ability to manage the tax books of record.
315.00.014 Property Tax   The process required to produce IRS 1099s at the end of each calendar year.
315.00.015 Property Tax   The ability to report assets by location for property tax assessment.

Nextell - 000285

Tax Assessment Review & Controls
ID Function Sub-Function Requirement
316.00.001 Assessment Review & Controls   Before a transaction can be approved and posted to the AR sub-ledger, it must be approved by the Tax Manager (for [CLIENT BUSINESS UNIT] only).

Nextell - 000286

Tax Payments & Verification
ID Function Sub-Function Requirement
317.00.001 Payments & Verification   Ablity to make tax payments both electorically and manually to all taxing jurisdictions
317.00.002 Payments & Verification   The ability to remove the temporary payment hold that is placed on a new supplier who has not yet submitted a completed Tax Verification Information letter.
317.00.003 Payments & Verification   The ability to maintain accounts payable tax codes in the system.

Nextell - 000287

Tax Other
ID Function Sub-Function Requirement
318.00.001 Tax & Treasury   Develop & Manage Tax Plan
318.00.002 Tax & Treasury   Manage Tax Relationships
318.00.003 Tax & Treasury   Manage Local Tax Authorities Relationships
318.00.004 Tax & Treasury   Manage 'Agencies' Tax Authorities Relationships
318.00.005 Tax & Treasury   Develop & Manage Treasury Plan
318.00.006 Tax & Treasury   Manage Financial Institution Relationships
318.00.007 Tax & Treasury   Manage Local Banking Relationships

Nextell - 000288

Updated August 14, 2015

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