Treasury and IRS Issue Draft Version of 2005 Schedule M-3 and Instructions for Corporate Tax Returns

Treasury and IRS Issue Draft Version of 2005 Schedule M-3 and
Instructions for Corporate Tax Returns

Today, the Treasury Department and Internal Revenue Service released a draft version of the 2005 Schedule M-3, Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More, and related instructions for use by certain corporate taxpayers filing Form 1120, U.S. Corporation Income Tax Return. The 2005 Form 1120 Schedule M-3 is for use with Form 1120 returns filed for calendar year 2005, fiscal years that begin in 2005 and end in 2006, and tax years of less than twelve months that begin and end in 2006.

The draft 2005 Schedule M-3 includes two new line items – one line for the new domestic production activities deduction and another line for interest expense. The draft 2005 Schedule M-3 also reflects other minor modifications to the 2004 Schedule M-3 that are described in the "What's New" section of the draft 2005 Schedule M-3 instructions. The draft 2005 Schedule M-3 instructions reflect the Schedule M-3 Frequently Asked Questions that are posted weekly on irs.gov.
The Treasury Department and IRS do not anticipate any further changes to the draft 2005 Schedule M-3 and instructions and expect that the final version of the form and instructions will be available this fall and posted on irs.gov.

Comments are requested regarding the draft 2005 Schedule M-3 and instructions. Comments should be submitted by August 31, 2005, to:

Judy McNamara Internal Revenue Service 860 E. Algonquin Road Schaumburg, IL 60173 Email address: PFTG2@irs.gov (Preferred) Telephone number: 312-566-2001, Ext. 9380

The Schedule M-3 and related instructions are attached and may be accessed on irs.gov or irs.gov/businesses/corporations/.

REPORTS In PDF Format
Draft 2005 Schedule M-3
Draft 2005 Schedule M-3 instructions

FROM THE OFFICE OF PUBLIC AFFAIRS, June 23, 2005, JS-2506