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Schedule M-1 reconciles book and taxable income for corporations with assets less than $50 million.  It is important to first understand the Schedule M-1 reporting process before tackling the more complex Schedule M-3 reporting requirement for corporations with assets greater than $50 million.

This course overs the Schedule M-1 and M-2 reporting requirements including:

  • Which corporations are required to complete Schedule M-1
    • Which corporations are exempt from the requirement
    • Which corporations must file Schedule M-3
  • How to report book/tax differences on Schedule M-1
    • How to identify and disclose temporary differences
    • How to identify and disclose permanent differences
  • How financial income reported on Schedule M-1 is used to reconcile beginning and ending retained earnings on Schedule M-2.
  • A comprehensive example of Schedule M-1 and M-2 computation and reporting requirements is provided to reinforce your knowledge of the tax compliance process when disclosing book-tax differences.

Course Series

This course is included in the following series:

7 CoursesReporting and Compliance for Book-Tax Differences

  1. Schedule M-1 Disclosure of Book-Tax Differences after 2017
  2. Corporate Tax Filing: Schedule M-3: Part I: Compliance and Reporting Issues
  3. Corporate Tax Filing: Schedule M-3: Part II: Compliance and Reporting Issues
  4. Corporate Tax Filing: Schedule M-3: Part III: Compliance and Reporting Issues
  5. Corporate Tax Filing: Schedule M-3: Additional Reporting in Parts II and III
  6. Corporate Tax Filing: Schedule M-3: Reporting Requirements for a Consolidated Group
  7. Uncertain Tax Positions: Tax Reporting Requirements after 2017

Learning Objectives

  • Explore the requirement to reconcile book-tax differences on the corporate tax return
  • Discover which entities are required to file Schedule M-1 based on the total assets of the corporation and recognize that a corporation may elect to file Schedule M-3.
  • Identify book-tax differences that increase taxable income, and recognize line 1-5 reporting requirements.
  • Identify book-tax differences that decrease taxable income, and recognize line 6-10 reporting requirements.
  • Explore how to reconcile retained earnings on Schedule M-2, and recognize line 2-3 and line 5-6 reporting requirements.
Last updated/reviewed: March 19, 2019

10 Reviews (60 ratings)Reviews

4
Member's Profile
Excellent presentation of information; particularly for accounting professionals who have no background on this topic. Again, I would have liked to review the graded final exam to determine which question was answered incorrectly.
4
Anonymous Author
I'm not involved with any tax work at my company but found this to be an informative course that brought me back to my public accounting days in tax.
5
Member's Profile
This course provided a good overview of how to account for book-tax differences, as well as how to effectively navigate the Schedule M-1
4
Anonymous Author
A lot of good information and detail in the course and in the slides. The slides and examples reinforce understanding of concepts.
4
Member's Profile
The use of multiple examples was helpful in understanding the differences.
5
Member's Profile
I have always wanted to understand the M1- this was an excellent class.
3
Member's Profile
The schedule m-2 section had a blank slide for the whole 14 minutes.
5
Member's Profile
Great instructor and lesson plan and review questions.
5
Anonymous Author
really good
3
Member's Profile
2

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course, but completion of the other courses in this series is recommended

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
INTRODUCTION AND OVERVIEW
  2:46Introduction to Corporate Tax Filing: Schedule M-1 Disclosure of Book-Tax Differences on the Corporate Tax Return
Schedule M-1 and M-2
  12:42M-1 Overview
  15:59M-1 Filing and Reporting Requirements
  20:02Schedule M-1 Reconciliation
  6:46Comprehensive Example 1
  20:11M-2 Filing and Reporting Requirements
Conclusion
  6:40Windsor Case Study
Continuous Play
  1:25:05Corporate Tax Filing: Schedule M-1 Disclosure of Book-Tax Differences on the Corporate Tax Return Full Video
SUPPORTING MATERIALS
  PDFSlides: Schedule M-1 Disclosure of Book-Tax Differences
  PDFSchedule M-1 Disclosure of Book-Tax Differences Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM