IRS Form 1120 Schedule B "Additional Information for Schedule M-3 Filers"

IRS Form 1120 is a U.S. Department of the Treasury - Internal Revenue Service form also known as the "Schedule B - Additional Information For Schedule M-3 Filers". The latest edition of the form was released in December 1, 2018 and is available for digital filing.

Download an up-to-date IRS Form 1120 in PDF-format down below or look it up on the U.S. Department of the Treasury - Internal Revenue Service Forms website.

Step-by-step Form 1120 instructions can be downloaded by clicking this link.

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Download IRS Form 1120 Schedule B "Additional Information for Schedule M-3 Filers"

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Additional Information for Schedule M-3 Filers
SCHEDULE B
(Form 1120)
OMB No. 1545-0123
(Rev. December 2018)
Attach to Form 1120.
Department of the Treasury
Go to www.irs.gov/Form1120 for the latest information.
Internal Revenue Service
Employer identification number (EIN)
Name
Yes
No
1
Does any amount reported on Schedule M-3 (Form 1120), Part II, line 9 or 10, column (d), reflect allocations to this
corporation from a partnership of income, gain, loss, deduction, or credit that are disproportionate to this
corporation’s capital contribution to the partnership or its ratio for sharing other items of the partnership? .
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2
At any time during the tax year, did the corporation sell, exchange, or transfer any interest in an intangible asset to
a related person as defined in section 267(b)? .
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3
At any time during the tax year, did the corporation acquire any interest in an intangible asset from a related
person as defined in section 267(b)? .
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4 a During the tax year, did the corporation enter into a cost-sharing arrangement with any related foreign party
on whose behalf the corporation did not file Form 5471, Information Return of U.S. Persons With Respect
To Certain Foreign Corporations?
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b At any time during the tax year, was the corporation a participant in a cost-sharing arrangement with any related
foreign party on whose behalf the corporation did not file Form 5471? .
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5
At any time during the tax year, did the corporation make any change in accounting principle for financial
accounting purposes? See instructions for the definition of “change in accounting principle”
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6
At any time during the tax year, did the corporation make any change in a method of accounting for U.S. income
tax purposes?
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7
At any time during the tax year, did the corporation own any voluntary employees’ beneficiary association (VEBA)
trusts that were used to hold funds designated for employee benefits?
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8
At any time during the tax year, did the corporation use an allocation method for indirect costs capitalized to
self-constructed assets that varied from its financial method of accounting? .
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9
At any time during the tax year, did the corporation treat for tax purposes indirect costs, as defined in Regulations
sections 1.263A-1(e)(3)(ii)(F), (G), and (H), as mixed-service costs, as defined in Regulations section 1.263A-1(e)(4)
(ii)(C)? .
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10
Did the corporation, under section 118 or 362(c) and the related regulations, take a return filing position
characterizing any amount as a contribution to the capital of the corporation during the tax year by any
nonshareholders? Amounts so characterized may include, without limitation, incentives, inducements, money,
and property .
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For Paperwork Reduction Act Notice, see the Instructions for Form 1120.
Cat. No. 49737Q
Schedule B (Form 1120) (Rev. 12-2018)
Additional Information for Schedule M-3 Filers
SCHEDULE B
(Form 1120)
OMB No. 1545-0123
(Rev. December 2018)
Attach to Form 1120.
Department of the Treasury
Go to www.irs.gov/Form1120 for the latest information.
Internal Revenue Service
Employer identification number (EIN)
Name
Yes
No
1
Does any amount reported on Schedule M-3 (Form 1120), Part II, line 9 or 10, column (d), reflect allocations to this
corporation from a partnership of income, gain, loss, deduction, or credit that are disproportionate to this
corporation’s capital contribution to the partnership or its ratio for sharing other items of the partnership? .
.
.
2
At any time during the tax year, did the corporation sell, exchange, or transfer any interest in an intangible asset to
a related person as defined in section 267(b)? .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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3
At any time during the tax year, did the corporation acquire any interest in an intangible asset from a related
person as defined in section 267(b)? .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
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.
.
4 a During the tax year, did the corporation enter into a cost-sharing arrangement with any related foreign party
on whose behalf the corporation did not file Form 5471, Information Return of U.S. Persons With Respect
To Certain Foreign Corporations?
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.
.
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b At any time during the tax year, was the corporation a participant in a cost-sharing arrangement with any related
foreign party on whose behalf the corporation did not file Form 5471? .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
At any time during the tax year, did the corporation make any change in accounting principle for financial
accounting purposes? See instructions for the definition of “change in accounting principle”
.
.
.
.
.
.
.
6
At any time during the tax year, did the corporation make any change in a method of accounting for U.S. income
tax purposes?
.
.
.
.
.
.
.
.
.
.
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7
At any time during the tax year, did the corporation own any voluntary employees’ beneficiary association (VEBA)
trusts that were used to hold funds designated for employee benefits?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
At any time during the tax year, did the corporation use an allocation method for indirect costs capitalized to
self-constructed assets that varied from its financial method of accounting? .
.
.
.
.
.
.
.
.
.
.
.
.
9
At any time during the tax year, did the corporation treat for tax purposes indirect costs, as defined in Regulations
sections 1.263A-1(e)(3)(ii)(F), (G), and (H), as mixed-service costs, as defined in Regulations section 1.263A-1(e)(4)
(ii)(C)? .
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.
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.
.
.
.
.
10
Did the corporation, under section 118 or 362(c) and the related regulations, take a return filing position
characterizing any amount as a contribution to the capital of the corporation during the tax year by any
nonshareholders? Amounts so characterized may include, without limitation, incentives, inducements, money,
and property .
.
.
.
.
.
.
.
.
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.
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.
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For Paperwork Reduction Act Notice, see the Instructions for Form 1120.
Cat. No. 49737Q
Schedule B (Form 1120) (Rev. 12-2018)
2
Schedule B (Form 1120) (Rev. 12-2018)
Page
General Instructions
Question 5. Changes in Accounting Principle
The term “change in accounting principle,” means a
Section references are to the Internal Revenue Code
change from one generally accepted accounting principle
unless otherwise noted.
to another generally accepted accounting principle as
Future Developments
described in Statement of Financial Accounting
Standards (SFAS) No. 154—Accounting Changes and
For the latest information about developments related to
Error Corrections.
Schedule B (Form 1120) and its instructions, such as
Answer “Yes” if a change in accounting principle
legislation enacted after they were published, go to
occurred during the tax year that affected (or is expected
www.irs.gov/Form1120.
to affect) the amount of income reported for financial
What’s New
statement purposes.
After December 22, 2017, the following nonshareholder
If the corporation has audited financial
contributions to the capital of a corporation are not
statements, any changes in accounting principle
TIP
eligible for exclusion under section 118.
should be identified in footnotes to those
statements.
• Any contribution by any civic group; or
• Any contribution by any governmental entity, except any
Question 6. Change in Method of Accounting
contribution that was made after December 22, 2017,
Corporations are generally required to file Form 3115,
according to a master development plan that was
Application for Change in Accounting Method, or a
approved prior to December 22, 2017, by a governmental
statement in lieu of Form 3115, to request a change in a
entity.
method of accounting. See the Instructions for Form
Purpose of Form
3115 for information on requesting a change in
accounting method.
Use Schedule B (Form 1120) to provide answers to
Question 7. Voluntary Employees’ Beneficiary
additional questions for filers of Schedule M-3 (Form
1120).
Association Trusts
Employers that establish and fund welfare benefit plans
Who Must File
on behalf of their employees do so through a tax-exempt
Generally, filers of Form 1120 that file Schedule M-3
trust that is referred to as a voluntary employees’
(Form 1120), must complete and file Schedule B (Form
beneficiary association (VEBA). See section 501(c)(9) and
1120). However, filers that (a) are required to file Schedule
Regulations sections 1.501(c)(9)-1 through 1.501(c)(9)-8
M-3 and have less than $50 million in total assets at the
for details.
end of the tax year or (b) are not required to file Schedule
Answer “Yes” if the corporation owned any VEBA trusts
M-3 and voluntarily file Schedule M-3, are not required to
that were used to hold funds designated for employee
file Schedule B (Form 1120). See the Instructions for
benefits.
Schedule M-3 (Form 1120) for more information.
Question 8. Indirect Costs
In the case of a consolidated group, a parent
corporation files one Schedule B for the entire group.
Section 446(a) and Regulations section 1.446-1(a)(1)
generally provide that taxable income shall be figured
Specific Instructions
under the method of accounting on the basis of which the
corporation regularly figures its income in keeping its
Question 1. Partnership Allocations
books. An exception applies if book income does not
Answer “Yes” if this corporation is a partner in a
clearly reflect income.
partnership and has received special allocations of
Answer “Yes” if the corporation, during the tax year,
income, gain, loss, deduction, or credit from such
used an allocation method for indirect costs capitalized
partnership.
to self-constructed assets that varied from its financial
Example. P, a corporation, joins with B, an individual,
statement method of accounting. Otherwise, answer
in forming the PB Partnership. P and B each contribute
“No.” Also answer “No” if the corporation used the same
$50,000 in cash to PB Partnership. Profits and losses are
method of allocating indirect costs to self-constructed
allocated equally, with the exception of depreciation,
assets, but capitalized a different amount due to
which is allocated 99% to P and 1% to B.
differences in the amount of costs which are includible
in the computation of income for the tax year.
P answers “Yes” to question 1 because its 99%
allocation of depreciation deductions from PB Partnership
Question 9. Mixed–Service Costs
is disproportionate to its ratio of sharing other items of
Answer “Yes” if the corporation, during the tax year,
income, gain, loss, deduction, or credit from PB
treated purchasing, handling, and storage, as discussed
Partnership.
in Regulations sections 1.263A-3(c)(1) through (5), and as
defined in Regulations sections 1.263A-1(e)(3)(ii)(F), (G),
and (H), as mixed-service costs as defined in Regulations
section 1.263A-1(e)(4)(ii)(C). Otherwise, answer “No.”
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