What is the form used for?
- Part I of this schedule asks certain questions about the corporation's financial statements and reconciles the financial statement worldwide net income (loss) for the corporation to income (loss) per the income statement of the corporation for U.S. income tax purposes.
- Parts II and III reconcile financial statement net income (loss) for the U.S. tax return to total income (loss) on Form 1120S, Schedule K.
Is the form Supported in our program? The Schedule M-3 form is available for the 1120-S package, exclusive to the Desktop version of UltimateTax Software.
How to access the form: While in a return, use the Add Form function to add a new "1120SM3" form to the return.
Limits to the form: This form is only available to the 1120S package. There is a specific Taxpayer version of the form and a version for a Spouse. Please note that there is a limit of one of each per return.
IRS Link: https://www.irs.gov/pub/irs-pdf/i1120ss3.pdf
