Schedule M-1/M-3 and Schedule UTP Reporting and Companies Requirements

Registration Process: 8:30 AM – 9:00 AM

Session Start Time: 9:00 AM

• Which entities are required to complete the Schedule M-3 for 2014
• Tips for accurately completing the Schedule M-3, Part I
• Clarification of financial statement hierarchy, including when tax-basis Financial Statements can be used for Part I reporting of financial information limits on use of tax-basis reporting
• Conforming Schedule L to required reporting method
• Part I Line 12 disclosure of total assets/liabilities of includible/excludible entities
• Tips for accurately completing the Schedule M-3, Parts II and III, overview
• Report in Parts II and III any item listed in Schedule M-3 that is included in the financial statements or books and records.
• Must report even if no book-tax difference
• Mapping and classification issues
• Meeting the “separately stated” and “adequately disclosed” requirements
• How to report “temporary” differences in Parts II and III, Column (b)
• How to report “permanent” differences in Parts II and III, Column (c)
• Required disclosures for interest income/expense on the expanded Form 8916-A for:
• Hybrid securities
• Sale/lease transactions
• Intercompany interest from outside/inside affiliated group
• Tips for accurately completing the Schedule M-3, Part II
• Income from a subsidiary, equity method vs. dividend method
• Income from a partnership
• Interest income (Form 8916-A)
• Cost of goods sold (Form 8916-A)
• Gain/loss on dispositions of assets
• Other income (loss) items with differences
• Tips for accurately completing the Schedule M-3, Part III
• Meal and entertainment expenses
• Fines and penalties
• Charitable contribution deduction
• Depreciation deduction
• Bad debt expense
• Other expense (deduction) items with differences
• Case Study, completing Schedule M-3, Parts II and III

• Issues unique to S corporations filing consolidated returns required to file Schedule M-3
• Identifying includable/excludable domestic entities
• Identifying includable/excludable foreign entities
• How are disregarded entities reported on Schedule M-3
• Case Study, Completing Schedule M-3, Part I
• Issues unique to partnerships and S corporations required to file Schedule M-3
• Disclosure requirements for Partnerships and S corporations
• How to determine who is a Reportable Entity Partner (REP) and what the reporting requirements are for a REP
• Schedule C reporting requirements for partnerships required to file Schedule M-3
• Capital accounts reporting and reconciliation
• Schedule M-3 disclosure requirements unique to partnerships
• How to report guaranteed payments
• Schedule M-3 disclosure requirements unique to S corporations
• How to report built-in gains tax
• Issues relating to Schedule UTP compliance for S corporations
• Identifying common UTP positions requiring disclosure
• Understanding which uncertain tax positions must be included on Schedule UTP
• Understanding what information describing the UTP must be disclosed on Schedule UTP
• Case Study, Completing Schedule UTP, Parts I and III
• How to avoid taxpayer and tax preparer penalties by satisfying disclosure requirements
• Distinguishing substantial authority from a position that meets the More-likely-than-not test.
• Using Schedule M-3 to meet disclosure requirements
• Other required disclosures

Cherie Hennig, Ph.D., is the co-author of the treatise, Practical Guide to Schedule M-3 Compliance, 2nd edition, published by CCH. She has published numerous articles on Schedule M-3 and Schedule UTP compliance which have appeared in The Tax Advisor, Tax Notes , Taxes—The Tax Magazine, the Journal of Taxation, and NATP TaxPro Journal.

Dr. Hennig began her career as an IRS Revenue Agent in Denver, CO. She received her BS, MBA, and Ph.D. degrees in accounting from the University of Colorado. She has taught undergraduate and graduate tax courses at the University of North Carolina, Wilmington, Florida International University, Colorado State University, the University of South Florida, and Virginia Tech. She has published articles in leading tax journals and has written and taught numerous continuing professional education courses. She is a co-author of Contemporary Tax Practice: Research, Planning and Strategy, 3rd edition, published by CCH, a Wolters Kluwer business. She received the American Taxation Association, Outstanding Service Award and has served on the Tax Executive Committee of the AICPA and on the Editorial Board of the ATA Journal of Legal Tax Research.