Schedule M-3 - Corporations, partnerships with assets between $10 million and $50 million may instead file Schedule M-1  

May 10:  The IRS today announced a notice of change in Schedule M-3 filing requirements for corporations and partnerships with $10 million to $50 million in total assets.

These corporations and partnerships (that file Forms 1120, 1120-C, 1120-F, 1120S, 1065 and 1065-B) will be permitted to file Schedule M-1—in place of Schedule M-3, Parts II and III—for tax years ending December 31, 2014, and later.

The IRS website posting states that no changes are currently planned to the Schedule M -3 requirements for Forms 1120-L or 1120-PC, or for Form 1120 taxpayers filing as a “mixed group.”

KPMG observation

Previously, there had been questions concerning the Schedule M-3 filing requirements because it was believed that the information requested was already provided on Schedule M-1. With today’s announcement, tax professionals generally agree with this IRS action—despite the amount of time and resources that taxpayers had expended to learn about and then comply with the Schedule M-3 requirements.

©2013 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
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.


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

Email your contact information.

TaxNewsFlash-United States by year