Go to irsgov and locate form M3 Compare the M3 to the M1 on

Go to irs.gov and locate form M-3. Compare the M-3 to the M-1 on page 16-27 of your text. Please discuss the primary differences between the two forms. Analyze the benefits of the information provided in the M-3 to the IRS as compared to the M-1.

Solution

Form M-1 reconciles book income to taxable income for corporations with business assets of $ 25000 to $10 million whereas Form M-3 for corporations with assets more than $ 10 million.

The major benifit of M-3 is that it has made easier for IRS to check the audit adjustments made and increase the transparency of corporate tax return filing