Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More

• Legal Form Number: 1120-S (Schedule M-3)
• Year: 2019
• Issuer: Treasury Department
• Section: Treasury Department

SCHEDULE M-3

(Form 1120-S)

(Rev. December 2019)

Department of the Treasury

Internal Revenue Service

Net Income (Loss) Reconciliation for S Corporations

With Total Assets of $10 Million or More

▶ Attach to Form 1120-S.

▶

Go to www.irs.gov/Form1120S for instructions and the latest information.

OMB No. 1545-0123

Name of corporation Employer identification number

Part I Financial Information and Net Income (Loss) Reconciliation (see instructions)

1aDid the corporation prepare a certified audited non-tax-basis income statement for the period ending with or within this tax

year? See instructions if multiple non-tax-basis income statements are prepared.

Yes. Skip line 1b and complete lines 2 through 11 with respect to that income statement.

No. Go to line 1b.

b Did the corporation prepare a non-tax-basis income statement for that period?

Yes. Complete lines 2 through 11 with respect to that income statement.

No. Skip lines 2 through 3b and enter the corporation’s net income (loss) per its books and records on line 4a.

2 Enter the income statement period: Beginning / / Ending / /

3 aHas the corporation’s income statement been restated for the income statement period on line 2?

Yes. If “Yes,” attach an explanation and the amount of each item restated.

No.

bHas the corporation’s income statement been restated for any of the five income statement periods immediately preceding the

period on line 2?

Yes. If “Yes,” attach an explanation and the amount of each item restated.

No.

4aWorldwide consolidated net income (loss) from income statement source identified in Part I, line 1 .4a

b Indicate accounting standard used for line 4a (see instructions):

(1) GAAP (2) IFRS

(3) Tax-basis (4) Other (specify)

5aNet income from nonincludible foreign entities (attach statement) ............5a ( )

b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) ...5b

6 aNet income from nonincludible U.S. entities (attach statement) .............6a ( )

b Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) ....6b

7aNet income (loss) of other foreign disregarded entities (attach statement) ..........7a

bNet income (loss) of other U.S. disregarded entities (except qualified subchapter S subsidiaries)

(attachstatement)............................7b

c Net income (loss) of other qualified subchapter S subsidiaries (QSubs) (attach statement) ....7c

8Adjustment to eliminations of transactions between includible entities and nonincludible entities

(attachstatement)............................8

9 Adjustment to reconcile income statement period to tax year (attach statement) .......9

10 Other adjustments to reconcile to amount on line 11 (attach statement) ..........10

11 Net income (loss) per income statement of the corporation. Combine lines 4 through 10 ...11

Note: Part I, line 11, must equal Part II, line 26, column (a); or Schedule M-1, line 1. See instructions.

12

Enter the total amount (not just the corporation’s share) of the assets and liabilities of all entities included or removed on the following lines:

Total Assets Total Liabilities

a Included on Part I, line 4

b Removed on Part I, line 5

c Removed on Part I, line 6

d Included on Part I, line 7

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S. Cat. No. 39666W Schedule M-3 (Form 1120-S) (Rev. 12-2019)