SECTION 6. DRAFTING

INFORMATION

The principal author of this revenue procedure is Francis M. McCormick of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue procedure, contact Branch 2 of Procedure and

tions), will not constitute an adequate disclosure.

Additionally, for taxpayers that file the Schedule M–3 (Form 1120), the new Schedule B, Additional Information for Schedule M–3 Filers, must also be completed. For taxpayers that file the Schedule M–3 (Form 1065), the new Schedule C, Additional Information for Schedule M–3 Filers, must also be completed. When required, these new Schedules are necessary to constitute adequate disclosure.

(a) Form 1065. Schedule M–3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships : Column (a), Income (Loss) per Income Statement, of Part II (reconciliation of income (loss) items) and Column (a), Expense per In- come Statement, of Part III (reconciliation of expense/deduction items); Column (b), Temporary Difference, and Column (c), Permanent Difference, of Part II (reconciliation of income (loss) items) and Part III (reconciliation of expense/deduction items); and Column (d), Income (Loss) per Tax Return, of Part II (reconciliation of income (loss) items) and Column (d), Deduction per Tax Return, of Part III (reconciliation of expense/deduction items).

(b) Form 1120. (i) Schedule M–1, Rec- onciliation of Income (Loss) per Books With Income per Return.

(ii) Schedule M–3 (Form 1120), Net Income (Loss) Reconciliation for Corpo- rations with Total Assets of $10 Million or More : Column (a), Income (Loss) per Income Statement, of Part II (reconciliation of income (loss) items) and Column (a), Expense per Income Statement, of Part III (reconciliation of expense/deduction items); Column (b), Temporary Difference, and Column (c), Permanent Difference, of Part II (reconciliation of income (loss) items) and Part III (reconciliation of expense/deduction items) and Column (d), Income (Loss) per Tax Re- turn, of Part II (reconciliation of income (loss) items); and Column (d), Deduction per Tax Return, of Part III (reconciliation of expense/deduction items).

(c) Form 1120–L. Schedule M–3 (Form 1120–L), Net Income (Loss) Reconcilia- tion for U.S. Life Insurance Companies With Total Assets of $10 Million or More : Column (a), Income (Loss) per Income Statement, of Part II (reconciliation of income (loss) items) and Column (a),

Expense per Income Statement, of Part III (reconciliation of expense/deduction items); Column (b), Temporary Differ- ence, and Column (c), Permanent Differ- ence, of Part II (reconciliation of income (loss) items) and Part III (reconciliation of expense/deduction items); and Column (d), Income (Loss) per Tax Return, of Part II (reconciliation of income (loss) items) and Column (d), Deduction per Tax Return, of Part III (reconciliation of expense/deduction items).

(d) Form 1120–PC. Schedule M–3 (Form 1120–PC), Net Income (Loss) Rec- onciliation for U.S. Property and Casualty Insurance Companies With Total Assets of $10 Million or More : Column (a), In- come (Loss) per Income Statement, of Part II (reconciliation of income (loss) items) and Column (a), Expense per In- come Statement, of Part III (reconciliation of expense/deduction items); Column (b), Temporary Difference, and Column (c), Permanent Difference, of Part II (reconciliation of income (loss) items) and Part III (reconciliation of expense/deduction items); and Column (d), Income (Loss) per Tax Return, of Part II (reconciliation of income (loss) items) and Column (d), Deduction per Tax Return, of Part III (reconciliation of expense/deduction items).

(e) Form 1120S. Schedule M–3 (Form 1120S), Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More : Column (a), Income (Loss) per Income Statement, of Part II (reconciliation of income (loss) items) and Column (a), Expense per Income Statement, of Part III (reconciliation of expense/deduction items); Column (b), Temporary Difference, and Column (c), Permanent Difference, of Part II (reconciliation of income (loss) items) and Part III (reconciliation of expense/deduction items); and Column (d), Income (Loss) per Tax Return, of Part II (reconciliation of income (loss) items) and Column (d), Deduction per Tax Return, of Part III (reconciliation of expense/deduction items).

(f) Form 1120–F. Schedule M–3 (Form 1120–F), Net Income (Loss) Reconcilia- tion for Foreign Corporations With Total Assets of $10 Million or More : Column (b), Temporary Difference, Column (c), Permanent Difference, and Column (d), Other Permanent Differences for Allo- cations to Non-ECI and ECI, of Part II

2011–3 I.R.B. 321 January 17, 2011

bona fide residents of a United States possession.

.11 For purposes of this revenue procedure, the source of an organization’s gross receipts other than gifts, grants, contributions, and membership fees is determined by applying the rules in §§ 861 through 865 and the regulations thereunder. .12 For purposes of this revenue procedure, a foreign organization is any organization not described in § 170(c)(2)(A).

.13 Section 7701(a)(9) defines “United States” when used in a geographical sense as only the States and the District of Columbia.

.14 Section 7701(a)(30) defines “United States person” as a citizen or resident of the United States, a domestic partnership, a domestic corporation, any estate that is not a foreign estate (within the meaning of § 7701(a)(31)), or any trust if “(i) a court within the United States is able to exercise primary supervision over the administration of the trust, and (ii) one or more United States persons have the authority to control all substantial decisions of the trust.”

.15 For purposes of this revenue procedure, a “United States possession organization” is any organization created or organized in a possession of the United States.

.16 In connection with the redesign of the Form 990, the IRS announced in a press release, IR–2007–204 (December 20, 2007), that for tax years ending on or after December 31, 2010, exempt organizations whose annual gross receipts are normally not more than $50,000 would not be required to file Form 990.

.17 Section 6033(i), enacted as part of the PPA, provides that any organization relieved from filing an annual return pursuant to § 6033(a)(3)(A)(ii) or § 6033(a)(3)(B) must furnish annually, in electronic form, a notice containing the information described in § 6033(i)(1). The annual notice requirement is satisfied by submitting a Form 990–N e-Postcard. See Treas. Reg. § 1.6033–6.

.18 From time to time, the Commissioner may relieve additional organizations from filing annual returns on Form 990 by publishing an announcement in the Internal Revenue Bulletin, revising the instructions accompanying Form 990, amending the regulations, or issuing other appropriate publications.

Administration at (202) 622–4940 (not a toll free call).

26 CFR 1.6033–2. Returns by exempt organizations (taxable years beginning after December 31, 1969) and returns by certain nonexempt organizations (tax- able years beginning after December 31, 1980).

Rev. Proc. 2011–15