The Evolving Schedule M-3: a New Era of Corporate Show and Tell?(Corporate Income Disclosure Tax Form‪)‬

INTRODUCTION On January 28, 2004, Treasury and Internal Revenue Service (IRS) jointly issued a draft proposed Schedule M-3 to replace Schedule M-1 for U.S. corporate income tax (Form 1120) book-tax reconciliation for corporations with assets of $10 million or more, with a proposed effective date for tax return periods ending December 31, 2004 or later. Draft proposed instructions were issued March 11, 2004. Treasury and IRS issued a revised Schedule M-3 on July 7, 2004 and plan to issue a final Schedule M-3 and instructions by September 30, 2004.