Draft instructions for Schedule M-3 (Form 1120) for 2014  

August 6: The IRS has posted a draft version (as of August 5, 2014) of the instructions for Schedule M-3 (Form 1120), Net Income (Loss) Reconciliation for Corporations With Total Assets of $!0 Million or More.

The draft instructions [PDF 930 KB] are released for comments and OMB approval.


The draft instructions note that for tax years ending on or after December 31, 2014:


  • Form 1120 and Form 1120-C filers that (1) are required to file Schedule M-3 (Form 1120) and have less than $50 million total assets at the end of the tax year, or (2) are not required to file Schedule M-3 (Form 1120) and voluntarily file Schedule M-3 (Form 1120), must either:
    • Complete Schedule M-3 (Form 1120) entirely or
    • Complete Schedule M-3 (Form 1120) through Part I, and complete Schedule M-1 of Form 1120 (or Form 1120-C, if applicable) instead of completing Parts II and III of Schedule M-3 (Form 1120)

These filers are not required to file Schedule B (Form 1120) or Form 8916-A.


If these filers choose to complete Schedule M-1—instead of completing Parts II and III of Schedule M-3—line 1 of the applicable M-1 must equal line 11 of Part I of Schedule M-3.


  • In the case of an “1120 mixed group,” Parts II and III of Schedule M-3 (Form 1120) must be completed for all members of the mixed group whether Schedule M-3 (Form 1120) is required or voluntarily filed.


  • Any filer that completes Parts II and III of Schedule M-3 (Form 1120), must complete all columns, without exception



©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-United States by year