R3- M2- Differences Between Book and Tax Flashcards
1 Book Income vs. Taxable Income 2 Schedules M-1 and M-3
1
Q
Who must file the Schedule M-3 on Form 1120?
More details and distinguish temporary and permanent differences
A
Corporations and S corporations with Total assets of $10 million or greater.
Partnerships must file Schedule M-3 if any of the following are true: The amount of total assets at the end of the tax year reported on Schedule L, line 14, column (d), is equal to $10 million or more.
2
Q
Who must file the Schedule M-1 on Form 1120?
A
The Schedule M-1 must be prepared by corporations with total receipts or total assets of $250,000 or more.
Schedule M-1 is the bridge (reconciliation) between the books and records of a corporation and its income tax return.
3
Q
State Franchise tax refunds are TAXABLE BOTH ON BOOKS AND TAX RETURNS
A
