Completing Schedule M-3 (Form 1120-S)

A corporation that is required to file Schedule M-3 (Form 1120-S) and has at least $50 million total assets at the end of the tax year must complete Schedule M-3 (Form 1120-S) entirely.

A corporation that (a) is required to file Schedule M-3 (Form 1120-S) and has less than $50 million total assets at the end of the tax year or (b) isn't required to file Schedule M-3 (Form 1120-S) and voluntarily files Schedule M-3 (Form 1120-S) must either (i) complete Schedule M-3 (Form 1065) entirely or (ii) complete Schedule M-3 (Form 1120-S) through Part I and complete Form 1120-S, Schedule M-1 instead of completing Parts II and III of Schedule M-3 (Form 1120-S). If the corporation chooses to complete Form 1120-S, Schedule M-1 instead of completing Parts II and III of Schedule M-3 (Form 1120-S), line 1 of Form 1120-S, Schedule M-1 must equal line 11 of Part I of Schedule M-3 (Form 1120-S).

For any part of Schedule M-3 (Form 1120-S) that is completed, all columns must be completed, all applicable questions must be answered, all numerical data asked for must be

Section references are to the Internal Revenue Code unless otherwise noted.