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.