Schedule M-3 Book to Tax Adjustments: Overcoming the Toughest Challenges in Reporting Income and Expense Differences

Recording of a 110-minute CPE webinar with Q&A

Conducted on Wednesday, August 10, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide guidance to corporate tax executives and advisers on the complex challenges that arise in the context of book-tax adjustments on Schedule M-3 for partnerships, S Corps and corporate clients. The panel will identify and offer practical solutions for the most complex problems that frequently arise with Schedule M-3 preparation.


Preparing Schedule M-3 to reconcile book and tax income for certain partnership (Form 1065), S corporation (Form 1120-S) and corporate (Form 1120) clients poses a number of complex challenges for tax return preparers. If Schedule M-3 reconciliation totals don’t match income on the form, then the tough work begins.

Our panel will address and offer practical, experienced insights into determining whether all book-tax differences that need to be reported on M-3 have been disclosed, offer solutions to problems that can arise in handling income and expense accounts where tax and book amounts are the same, explain approaches to overcome common difficulties with partnership income, interest income, and expense and other M-3 items.

The panel will identify entities that may elect to file the less complex Schedule M-1 in lieu of Schedule M-3, and how to determine whether your client corporation must also file Schedule UTP, or disclosure of uncertain tax positions.

Listen as our experienced panel focuses on special challenges arising currently with book-tax adjustments on Schedule M-3 for partnership, S corporation and corporate clients to prepare you to anticipate issues with your own client work and deal with them more effectively. Our panel of tax advisers will outline approaches for handling thorny Schedule M-3 compliance challenges.



  1. Identifying book-tax differences that must be reported on Schedule M-3
  2. Reporting differences for income items
  3. Reporting differences for expense items
  4. Special issues particular to forms 1065, 1120-S and 1120.


The panel will explore these and other book-tax reporting issues:

  • Reporting partnership income
  • Identifying equity vs. dividend method for reporting income, gains and losses on asset sales, and reporting sales vs. lease transactions
  • Disclosing interest income and expenses
  • Determining depreciation, amortization and other deductions
  • Filing Schedule M-1 in lieu of Schedule M-3
  • Disclosing uncertain tax positions separately on Schedule UTP when required


Professor Cherie Hennig, Ph.D.
Professor Cherie Hennig, Ph.D.
Associate Professor of Accounting
University of North Carolina at Wilmington

Professor Hennig received her Bachelor's, Master's, and Ph.D. degrees in accounting from the University of...  |  Read More

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