US Treasury Issues Final Instructions For Amended Corporate Tax Return

by Mike Godfrey, for LawAndTax-News.com, Washington

06 December 2004

The US Treasury Department and Internal Revenue Service on Thursday released final instructions for the Schedule M-3, Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More. The form is designed to be used by certain corporate taxpayers filing Form 1120, US Corporation Income Tax Return.

Schedule M-3 is effective for any taxable year ending on or after December 31, 2004. In general, Schedule M-3 must be filed by a corporation required to file Form 1120, US Corporation Income Tax Return, that reports on Form 1120 at the end of the corporation's taxable year total assets that equal or exceed $10 million. However, a corporation is only required to complete certain sections of Schedule M-3 in the first taxable year the corporation is required to file the schedule.

The final instructions to Schedule M-3 provide additional guidance to those corporations required to file the schedule, including detailed instructions for almost every line and many illustrative examples. The Treasury and IRS expressed the hope on Thursday that the additional guidance and examples will significantly assist in completion of the schedule.

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