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June 23, 2005
JS-2506
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 www.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 www.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 www.irs.gov or http://www.irs.gov/businesses/corporations/article/0,,id=119992,00.html.
REPORTS