Is an insurance company that files Form 1120PC or Form 1120L required to complete Schedule M-3?
A. Schedule M-3 is not required for any member of a U.S. consolidated tax group if the parent company of the U.S. consolidated tax group is an insurer that files Form 1120PC (U.S. Property and Casualty Insurance Company) or Form 1120L (U.S. Life Insurance Company Income Tax Return), regardless of whether any members of the group file Form 1120. If the parent company of a U.S. consolidated tax group files Form 1120, all members of the group must file Schedule M-3.
A-10: Schedule M-3 is not required for any member of a U.S. consolidated tax group if the parent company of the U.S. consolidated tax group is an insurer that files Form 1120PC (U.S. Property and Casualty Insurance Company) or Form 1120L (U.S. Life Insurance Company Income Tax Return), regardless of whether any members of the group file Form 1120. If the parent company of a U.S. consolidated tax group files Form 1120, all members of the group must file Schedule M-3. However, if any member of that group files Form 1120PC or Form 1120L, that member may either (i) fully complete Schedule M-3 as if the member filed Form 1120; or (ii) complete Schedule M-3 by including the sum of all differences between the member´s net income (or loss) per the income statement and taxable income ( differences ) (regardless of whether the difference would otherwise be reported elsewhere on Part II or on Part III) on Part II, Line 30, Other income (loss) items with differences, and separately state and adequ
