Schedules M-1 and M-3 reconcile book income to taxable income reported on the return. Corporations with $50 million or more of assets are required to file the more complex Schedule M-3. This course covers Part I of Schedule M-3 including filing and disclosure requirements.
Since the purpose of Schedule M-3 is to provide detailed information on book-tax differences, it is important to determine the financial information disclosure requirements, including the determination of “book” income versus “taxable Income.”
A comprehensive example of Schedule M-3, Part I is provided to reinforce your knowledge of the reporting and tax compliance process.
This course covers the Schedule M-3, Part I filing and reporting requirements, including:
- Which corporations are required to complete Schedule M-3
- which corporations are exempt from the reporting requirement
- which corporations may file Schedule M-1 instead
- What disclosures are required regarding the accounting method used to determine financial income.
- How to compute the net income (loss) from the income statement used to reconcile book income to taxable income.
- How financial income reported on Schedule M-3 is used to reconcile ending retained earnings reported on Schedule M-2.
After completing this course you will be better positioned to quickly and accurately complete Schedule M-3, a critical part of your company's corporate tax filing duties.
Note: Parts II and III of Schedule M-3 are covered in other courses on Illumeo.
Course Series
This course is included in the following series:
1 CourseReporting and Compliance for Book-Tax Differences
- Corporate Tax Filing: Schedule M-3: Part I: Compliance and Reporting Issues
Learning Objectives
- Identify which entities are required to file Schedule M-3.
- Identify the basic financial information disclosure requirements.
- Identify how to reconcile worldwide consolidated net income, line 4 to net income of includible corporations, lines 4-11.
- Discover how to reconcile retained earnings on Schedule M-2 using line 11, net income of includible corporations.
- 1. Tangible Property Regulations
- 2. Child Tax Credit and Other Dependents Credit
- 3. AI Series - Considerations in Tax Preparation & Research (Text Based Course)
- 4. Impact of 2018 Tax Cuts and the Jobs Act on Corporations, Shareholders and Employees
- 5. American Rescue Plan Act 2022 Update
- 6. Consolidated Corporate Tax Returns: Advantages and Disadvantages
- 7. IRS Representation Series - Doing Offer-in-Compromise: How to Complete the Form 656 Application
- 8. GILTI and FDII: Structuring Multinational Businesses
- 9. US Outbound International Tax After 2017 Tax Reform - The State of Play As We Head Into the ‘20s Conditions Leading to the 2017 Act, and the Overall Systemic Changes it Introduced
- 10. IRS Representation Series - Foolproof Tips to Release IRS Levies on Paychecks or Bank Accounts
10 Reviews (53 ratings)
Reviews
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.