SECTION 2. CHANGES FROM REV.

PROC. 2005–75

.01. Editorial changes have been made in updating Rev. Proc. 2005–75.

.02. Section 4.02(3) concerning difference in book and income tax reporting is expanded by adding new Schedules M–3 for Forms 1065, U.S. Return of Partner- ship Income, 1120–L, U.S. Life Insurance Company Income Tax Return, 1120–PC, U.S. Property and Casualty Insurance Company Income Tax Return, 1120S, U.S. Income Tax Return for an S Corporation, which reconcile net income (loss) in the financial statements to that shown on an entity’s return.