Schedule M-1 — 2025 Inst 1120-RIC (PDF)

Reconciliation of Income (Loss) per Books With Income per Return

Line 5d. Travel and entertainment. Include on line 5d any of the following:

Entertainment expenses not deductible under section 274(a);
Entertainment related meal expenses;
Non-entertainment related meals not deductible under section 274(n);
Expenses for the use of an entertainment facility;
The part of business gifts over $25;
Expenses of an individual over $2,000 that are allocable to conventions on cruise ships;
Employee achievement awards of nontangible property or tangible property over $400 ($1,600 if part of a qualified plan);
The cost of skyboxes;
The part of luxury water travel not deductible under section 274(m);
Expenses for travel as a form of education; and
Other nondeductible travel and entertainment expenses.

Line 7. Tax-exempt interest. Include as interest on line 7 any exempt-interest dividends received by the RIC as a shareholder in a mutual fund or other RIC.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

Estimates of taxpayer burden. The following tables show burden estimates based on current statutory requirements as of December 2025 for taxpayers filing 2025 Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL, and related attachments. Time spent and out-of-pocket costs are presented separately. Time burden is broken out by taxpayer activity, with reporting representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax preparation software costs. While these estimates don’t include burden associated with post-filing activities, IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden.

Reported time and cost burdens are national averages and don’t necessarily reflect a “typical” case. Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type.

20 Instructions for Form 1120-RIC (2025)

The average burden for partnerships filing Forms 1065 and related attachments is about 60 hours and $5,300; the average burden for corporations filing Form 1120 and associated forms is about 90 hours and $8,600; and the average burden for Forms 1066, 1120-REIT, 1120-RIC, 1120-S, and all related attachments is 60 hours and $4,800. Within each of these estimates there is significant variation in taxpayer activity. Tax preparation fees and other out-of-pocket costs vary extensively depending on the tax situation of the taxpayer, the type of software or professional preparer used, and the geographic location. Third-party burden hours are not included in these estimates.

Table 1 – Taxpayer Burden for Entities Taxed as Partnerships Forms 1065, 1066, and all attachments
Forms 1065, 1066, and all attachments
Primary form filed or type of taxpayer	Total number of returns (millions)	Average time (hours)	Average cost ($)	Average monetized burden ($)
All Partnerships	5.5	60	5,300	8,700
Small	5.1	50	3,300	5,200
Large*	0.4	180	29,400	50,700
*A large business is defined as one having end-of-year assets greater than $10 million. A large business is defined the same way for partnerships, taxable corporations, and pass-through corporations. A small business is any business that doesn’t meet the definition of a large business.

Table 2 – Taxpayer Burden for Entities Taxed as Taxable Corporations Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL, and all
Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL, and all attachments
Primary form filed or type of taxpayer	Total number of returns (millions)	Average time (hours)	Average cost ($)	Average monetized burden ($)
All Taxable Corporations	2.3	90	8,600	15,700
Small	2.1	40	3,900	6,000
Large*	0.2	610	69,400	141,500
*A large business is defined as one having end-of-year assets greater than $10 million. A large business is defined the same way for partnerships, taxable corporations, and pass-through corporations. A small business is any business that doesn’t meet the definition of a large business.

Table 3 – Taxpayer Burden for Entities Taxed as Pass-Through Corporations Forms 1120-REIT, 1120-RIC, 1120-S, and all attachments
Forms 1120-REIT, 1120-RIC, 1120-S, and all attachments
Primary form filed or type of taxpayer	Total number of returns (millions)	Average time (hours)	Average cost ($)	Average monetized burden ($)
All Pass-Through Corporations	6.2	60	4,800	7,700
Small	6.1	50	4,200	6,500
Large*	0.1	290	42,600	76,600

*A large business is defined as one having end-of-year assets greater than $10 million. A large business is defined the same way for partnerships, taxable
corporations, and pass-through corporations. A small business is any business that doesn’t meet the definition of a large business.

Comments. If you have comments concerning the accuracy of these time estimates or suggestions for making these forms simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments . Or you can write to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the tax form to this office. Instead, see Where To File , earlier, near the beginning of the instructions.

Instructions for Form 1120-RIC (2025) 21

Index

Accounting methods 5 Accounting period (Tax Year) 6 Address change 9 Amended return 9 Amortization 10 Assembling the return 4

Backup withholding 14 Balance sheets 20 Business start-up expenses 10

Closely held corporations 11 Compensation of officers 11 Contributions, charitable 12 Credits against tax 16

Deductions 10 Depository methods of tax payment 4 Depreciation 12 Direct deposit of refund 14 Disclosure statement 7 Dividend income 9 Dividends paid- deductions 15 Dues, membership and other 13

Electronic deposit requirement 4 Employer identification number (EIN) 9 Establish date 9 Estimated tax payments 5, 14 Estimated tax penalty 14 Extension of time to file 3

Final return 9 Foreign person (defined) 18

Foreign tax credit 16 Forms and publications, how to get 1 Future developments 1

General business credit 16 General instructions 1

Interest due :

Late payment of tax 5 Interest expense 12 Interest income :

Tax-exempt 18, 20 Taxable 9

Limitations on deductions 10, 12 Lobbying activities, nondeductibility 13 Lobbying expenses, nondeductibility 14

Name change 9 Net operating loss (NOL) 11

Other deductions 12 Other income 9 Other taxes 17 Overpaid estimated tax 5

Passive activity limitations 11 Penalties 5 Pension, profit-sharing, etc. plans 13 Personal holding company tax 16 Preparer, tax return 3 Private delivery services 3

Qualified opportunity funds 2

Recapture taxes 17 Reconciliation of income 20 Recordkeeping 6 Related party transactions 10 Rents 11

Salaries and wages 11 Schedule :

A 15 B 15 J 15 K 18 L 20 M-1 20 Shareholders’ equity adjustments 20 Signature 3 Small business taxpayer 19 Specific Instructions 8

Tax and payments 14 Tax issues, unresolved 1 Tax-exempt securities 20 Taxable income 9 Taxes and licenses 11 Total assets 9 Travel, meals, and entertainment 13

What’s new 1 When to file 3 Where to file 4 Who must file 1 Who must sign 3 Worksheet :

Built-in gains 18