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Schedules M-1 and M-3 reconcile book income to taxable income reported on the return. Only corporations with $50 million or more of assets are required to file Schedule M-3. Thus, the majority of the approximate two million corporate tax returns filed annually complete the Schedule M-1 rather than the Schedule M-3. It is important to first understand the Schedule M-1 reporting process before tackling the more complex reporting requirements of the Schedule M-3.

This course offers an in-depth look at the reporting requirements and compliance for book-tax differences, beginning with Schedule M-1, moving to Schedule M-3, and concluding with uncertain tax positions.

Learning Objectives

  • Recognize which entities are required to file Schedule M-1.
  • Identify book-tax differences that increase taxable income and reduce taxable income.
  • Discover how to reconcile retained earnings on Schedule M-2.
  • Identify which entities are required to file Schedule M-3, the basic financial information disclosure requirements, and 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.
  • Recognize which entities are required to file Schedule M-3.
  • Identify the basic financial information disclosure requirements and how to reconcile worldwide consolidated net income, line 4 to net income of includible.
  • Recognize the disclosure requirements for the total assets and liabilities of includible entities reported on line 12.
  • Discover how to reconcile retained earnings on Schedule M-2 using line 11, net income of includible corporations and recognize the four column reporting format for reconciling book income to taxable income.
  • Discover how to report common book-tax expense/deduction differences.
  • Identify how to report other expense/deduction items with differences on line 37 and how to reconcile Part II, line 30 net income (loss) with financial income reported on line 11, Part I and with taxable income reported on line 28, form 1120.
  • Identify which unusual/nonrecurring book-tax differences must be disclosed on Schedule M-3.
  • Discover why it is important to “get the numbers right” and to separately and adequately disclose income and expense/deductions and recognize how to disclose the following Part II, income items and how to disclose the following Part III, expense/deduction items.
  • Identify which entities from the financial consolidated group are included/excluded on the consolidated tax return.
  • Discover the Schedule M-3, Part I reporting requirements for a consolidated group on the consolidated return.
  • Identify how to report the current/deferred US tax expense for a consolidated group on Lines 1 and 2 of Schedule M-3, part III and how to report intercompany transactions between members of the consolidated group.
  • Identify how to determine and report uncertain tax positions on the financial statements and the tax return.
  • Discover which uncertain tax positions must be disclosed on the tax return entify the Schedule UTP filing requirements and recognize the overlap of Schedule M-3 and Schedule UTP disclosure requirements.
Last updated/reviewed: December 08, 2017

2 Reviews (9 ratings)Reviews

5
Member's Profile
Length of the course was definitely required as a lot of in depth material is covered. Great for anybody seeking a career in professional taxation
4
Anonymous Author
This course is PACKED with info. Almost a little too much info, but its good.

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  1:02:551 Corporate Tax Filing Schedule M-1: Disclosure of Book-Tax Differences on the Corporate Tax Return
  55:242 Corporate Tax Filing Schedule M-3, Part I Compliance and Reporting Issues Full Video
  1:04:123 Corporate Tax Filing Schedule M-3: Part II Compliance and Reporting Issues Full Video
  1:01:164 Corporate Tax Filing Schedule M-3: Part III Compliance and Reporting Issues
  47:585 Corporate Tax Filing Schedule M-3: Additional Reporting in Parts II and III
  1:01:146 Corporate Tax Filing Schedule M-3: Reporting Requirements for a Consolidated Group
  1:05:51Corporate Tax Filing: Uncertain Tax Positions: Financial Accounting and Tax Reporting Requirements
Supporting Materials
  ZIPReporting and Compliance for Book-Tax Differences Combined Supporting Materials
REVEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM