Schedule M-3 revisions.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

The Service has issued a revised, draft version of Schedule M-3 of Form 1120, U.S. Corporation Income Tax Return, to allow taxpayers to take a manufacturing deduction and interest expenses into account.

According to Robert Adams, a senior industry adviser in the IRS's Large and Mid-Size Business Division, the Service is also formulating versions of Schedule M-3 for partnership, S corporation, property and casualty insurance company, and life insurance company returns.

According to Adams, the revised draft Schedule M-3 includes provisions for taxpayers to calculate the new Sec. 199 deduction for domestic manufacturing and includes an interest expense line. The IRS has also expanded its list of Schedule M-3 frequently asked questions and...