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.




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