May a corporation that attaches Schedule M-3 to its Form 1120 also complete Schedule M-1?
A. No. The Schedule M-3 instructions provide that a “corporation filing Schedule M-3 must not file Schedule M-1”. This applies regardless of whether the taxpayer is required to file Schedule M-3 or is voluntarily filing Schedule M-3. It should be noted that if Schedule M-1 is completed when Schedule M-3 is attached, it could lead to inconsistencies that may raise the perceived level of compliance risk contained in the return, especially when returns are electronically filed.
Related Questions
- Must a corporation complete all parts of Schedule M-3 for any taxable year the corporation is required to file Schedule M-3?
- Is an insurance company that files Form 1120PC or Form 1120L required to complete Schedule M-3?
- May a corporation that attaches Schedule M-3 to its Form 1120 also complete Schedule M-1?
