Corporate Tax Filing: Schedule M-3: Additional Reporting in Parts II and III

This course covers unusual and nonrecurring disclosure requirements for Income (Loss)  and expense/deduction items reported on the financial statements that must also be disclosed on Schedule M-3. 

Most of these topics relate either to industry specific book-tax differences or to items that are not usually encountered in the annual accounting cycle.  Nevertheless, when these items occur, they must be separately and adequately disclosed on Schedule M-3 as either “temporary” or ‘permanent” differences. It is important to “get the numbers right” when completing Parts II and III of Schedule M-3.

This course covers the unusual and nonrecurring items that must be disclosed on Schedule M-3 including:

• Unusual income items that result in book-tax differences.
• Unusual expense/deduction items that result in book tax differences.

Note:  Schedule M-3, Part II and III disclosures of frequently occurring book-tax differences was covered in prior intermediate courses. 

A comprehensive example of Schedule M-3, parts II and III for corporations with unusual/nonrecurring income, expense/deduction items is provided to reinforce your knowledge of the compliance/reporting issues regarding Schedule M-3 compliance.