Instructions for Schedule M-3 (Form 1120-PC)›(Rev. December 2025)›General Instructions
Purpose of Schedule
Instruction 1120-PC (Schedule M-3) — Instructions for Schedule M-3 (Form 1120-PC), Net Income (Loss) Reconciliation for U.S. Property and Casualty Insurance Companies With Total Assets of $10 Million or More · 2026-10-03 edition · updated 2026-10-04 · United States
Schedule M-3, Part I, asks certain questions about the corporation’s financial statements and reconciles financial statement net income (loss) for the corporation (or consolidated financial statement group, if applicable), as reported on Schedule M-3, Part I, line 4a, to net income (loss) of the corporation for U.S. taxable income purposes, as reported on Schedule M-3, Part I, line 11.
Schedule M-3, Parts II and III, reconcile financial statement net income (loss) for the U.S. corporation (or consolidated tax group, if applicable), as reported on Schedule M-3, Part I, line 11, to the subtotal on Form 1120-PC, Schedule A, line 35 (or Schedule B, line 19, if applicable). For property and casualty insurance companies that prepare an annual statement, financial statement net income (loss) should be reported on the statutory basis on Schedule M-3, Part I, line 11.
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