IRS Form 1120-F 2018 Schedule M-3 - Net Income (Loss) Reconciliation for Foreign Corporations With Reportable Assets of $10 Million or More

IRS Form 1120-F is a U.S. Department of the Treasury - Internal Revenue Service - issued form also known as the "Schedule M-3 - Net Income (loss) Reconciliation For Foreign Corporations With Reportable Assets Of $10 Million Or More".

Download a PDF version of the latest IRS Form 1120-F down below or find it on the U.S. Department of the Treasury - Internal Revenue Service Forms website.

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

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Net Income (Loss) Reconciliation for Foreign
SCHEDULE M-3
OMB No. 1545-0123
(Form 1120-F)
Corporations With Reportable Assets of $10 Million or More
2018
Attach to Form 1120-F.
Department of the Treasury
Go to www.irs.gov/Form1120F for instructions and the latest information.
Internal Revenue Service
Name of corporation
Employer identification number
Has the corporation reported taxable income on Form 1120-F, page 4, using a treaty provision to attribute
A
business profits to a U.S. permanent establishment under rules other than section 864(c)? .
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Yes
No
B
Did the corporation prepare a non-consolidated, worldwide, certified audited income statement for the
period (see instructions)?
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Yes
No
C
Did the corporation prepare a non-consolidated, worldwide income statement for the period (see instructions)?
Yes
No
D
Did the corporation prepare certified audited income statement(s) for the set(s) of books reported on
Form 1120-F, Schedule L? .
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Yes
No
Part I
Financial Information and Net Income (Loss) Reconciliation (see instructions)
1
Is the corporation a foreign bank as defined in Regulations section 1.882-5(c)(4)?
Yes. Complete the remainder of Part I as follows:
If D is “Yes,” use the income statement described in D to complete lines 2 through 5 and 7 through 11.
If D is “No,” use the income statement(s) for the set(s) of books reported on Form 1120-F, Schedule L
to complete lines 2 through 5 and 7 through 11.
No. Complete the remainder of Part I as follows:
If B is “Yes,” use the income statement described in B to complete lines 2 through 11.
If B is “No” and C is “Yes,” use the income statement described in C to complete lines 2 through 11.
If B and C are “No” and D is “Yes,” use the income statement described in D to complete lines 2 through 11.
If B, C, and D are “No,” use the income statement described in the instructions to complete lines 2 through 11.
2a Enter the income statement period: Beginning
Ending
b Has the corporation’s income statement been restated for the income statement period entered on line 2a?
Yes. Attach an explanation and the amount of each item restated.
No.
c Has the corporation’s income statement been restated for any of the 5 income statement periods immediately
preceding the period on line 2a?
Yes. Attach an explanation and the amount of each item restated.
No.
3
Is any of the corporation’s stock publicly traded on any exchange, U.S. or foreign?
Yes. List exchange(s) and symbol
No.
4
Non-consolidated foreign corporation net income (loss) in U.S. dollars from the income statement
source identified in line 1 .
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4
5a Net income from includible disregarded foreign entities not included on line 4 (attach statement) .
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5a
5b (
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b Net loss from includible disregarded foreign entities not included on line 4 (attach statement) .
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c Net income from includible disregarded U.S. entities not included on line 4 (attach statement) .
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5c
5d (
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d Net loss from includible disregarded U.S. entities not included on line 4 (attach statement) .
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Net income (loss) from foreign locations not included on line 4 (attach statement) .
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7a (
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7a Net income of non-includible entities (attach statement)
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b Net loss of non-includible entities (attach statement)
7b
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8
Adjustments to intercompany transactions (attach statement)
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8
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Adjustments to reconcile income statement period to tax year (attach statement) .
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10
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Other adjustments to reconcile to amount on line 11 (attach statement)
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11
Adjusted financial net income (loss) of non-consolidated foreign corporation. Combine lines 4
through 10
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11
Note. Part I, line 11, must equal Part II, line 28, column (a) or Schedule M-1, line 1 (see instructions).
For Paperwork Reduction Act Notice, see the Instructions
Cat. No. 39667H
Schedule M-3 (Form 1120-F) 2018
for Form 1120-F.
Net Income (Loss) Reconciliation for Foreign
SCHEDULE M-3
OMB No. 1545-0123
(Form 1120-F)
Corporations With Reportable Assets of $10 Million or More
2018
Attach to Form 1120-F.
Department of the Treasury
Go to www.irs.gov/Form1120F for instructions and the latest information.
Internal Revenue Service
Name of corporation
Employer identification number
Has the corporation reported taxable income on Form 1120-F, page 4, using a treaty provision to attribute
A
business profits to a U.S. permanent establishment under rules other than section 864(c)? .
.
.
.
.
.
Yes
No
B
Did the corporation prepare a non-consolidated, worldwide, certified audited income statement for the
period (see instructions)?
.
.
.
.
.
.
.
.
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Yes
No
C
Did the corporation prepare a non-consolidated, worldwide income statement for the period (see instructions)?
Yes
No
D
Did the corporation prepare certified audited income statement(s) for the set(s) of books reported on
Form 1120-F, Schedule L? .
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Yes
No
Part I
Financial Information and Net Income (Loss) Reconciliation (see instructions)
1
Is the corporation a foreign bank as defined in Regulations section 1.882-5(c)(4)?
Yes. Complete the remainder of Part I as follows:
If D is “Yes,” use the income statement described in D to complete lines 2 through 5 and 7 through 11.
If D is “No,” use the income statement(s) for the set(s) of books reported on Form 1120-F, Schedule L
to complete lines 2 through 5 and 7 through 11.
No. Complete the remainder of Part I as follows:
If B is “Yes,” use the income statement described in B to complete lines 2 through 11.
If B is “No” and C is “Yes,” use the income statement described in C to complete lines 2 through 11.
If B and C are “No” and D is “Yes,” use the income statement described in D to complete lines 2 through 11.
If B, C, and D are “No,” use the income statement described in the instructions to complete lines 2 through 11.
2a Enter the income statement period: Beginning
Ending
b Has the corporation’s income statement been restated for the income statement period entered on line 2a?
Yes. Attach an explanation and the amount of each item restated.
No.
c Has the corporation’s income statement been restated for any of the 5 income statement periods immediately
preceding the period on line 2a?
Yes. Attach an explanation and the amount of each item restated.
No.
3
Is any of the corporation’s stock publicly traded on any exchange, U.S. or foreign?
Yes. List exchange(s) and symbol
No.
4
Non-consolidated foreign corporation net income (loss) in U.S. dollars from the income statement
source identified in line 1 .
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4
5a Net income from includible disregarded foreign entities not included on line 4 (attach statement) .
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5a
5b (
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b Net loss from includible disregarded foreign entities not included on line 4 (attach statement) .
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c Net income from includible disregarded U.S. entities not included on line 4 (attach statement) .
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5c
5d (
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d Net loss from includible disregarded U.S. entities not included on line 4 (attach statement) .
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6
Net income (loss) from foreign locations not included on line 4 (attach statement) .
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6
7a (
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7a Net income of non-includible entities (attach statement)
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b Net loss of non-includible entities (attach statement)
7b
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8
Adjustments to intercompany transactions (attach statement)
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8
9
Adjustments to reconcile income statement period to tax year (attach statement) .
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9
10
10
Other adjustments to reconcile to amount on line 11 (attach statement)
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11
Adjusted financial net income (loss) of non-consolidated foreign corporation. Combine lines 4
through 10
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11
Note. Part I, line 11, must equal Part II, line 28, column (a) or Schedule M-1, line 1 (see instructions).
For Paperwork Reduction Act Notice, see the Instructions
Cat. No. 39667H
Schedule M-3 (Form 1120-F) 2018
for Form 1120-F.
2
Schedule M-3 (Form 1120-F) 2018
Page
Name of corporation
Employer identification number
Part II
Reconciliation of Net Income (Loss) per Income Statement of Non-Consolidated Foreign Corporations With
Taxable Income per Return (see instructions)
(d)
(a)
(b)
(c)
Other Permanent
(e)
Income (Loss) Items
Income (Loss) per
Temporary
Permanent
Differences
Income (Loss)
Income Statement
Differences
Differences
for Allocations to
per Tax Return
Non-ECI and ECI
1
Gross receipts .
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2
Cost of goods sold (attach statement) .
3a
Dividends from foreign entities .
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b
Dividends from U.S. entities .
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c
Substitute dividend payments received
4a
Interest
income
excluding
interest
equivalents .
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b
Substitute interest payments received
c
Interest equivalents not included on line 4b
5
Gross rental income .
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6
Gross royalty income .
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7
Fee and commission income
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8
Income (loss) from equity method
corporations
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9
Net income (loss) from U.S. partnerships
10
Net income (loss) from certain foreign
partnerships (see instructions) .
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11
Net income (loss) from other pass-
through entities (attach statement) .
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12
Items relating to reportable transactions
(attach statement) .
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13
Hedging transactions .
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14a
Mark-to-market income (loss) under
section 475(a) .
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b
Mark-to-market income (loss) subject to
section 475(d)(3)(B)
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c
Mark-to-market income (loss) under
section 475(e) .
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d
Mark-to-market income (loss) under
section 475(f) .
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15
Gain (loss) from certain section 988
transactions
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16a
Interest income from global securities
dealing .
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b
Dividends from global securities dealing
c
Gains (losses) and other fixed and
determinable,
annual,
or
periodic
income from global securities dealing
not included on lines 16a and 16b .
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17
Sales versus lease (for sellers and/or
lessors) .
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18
Section 481(a) adjustments .
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19
Unearned/deferred revenue .
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Original
issue
discount,
imputed
20
interest, and phantom income .
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21a
Income statement gain/loss on sale,
exchange, abandonment, worthlessness, or
other disposition of assets other than
inventory and pass-through entities
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b
Gross capital gains from Schedule D,
excluding amounts from pass-through
entities .
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Schedule M-3 (Form 1120-F) 2018
3
Schedule M-3 (Form 1120-F) 2018
Page
Name of corporation
Employer identification number
Part II
Reconciliation of Net Income (Loss) per Income Statement of Non-Consolidated Foreign Corporations
With Taxable Income per Return (see instructions) (continued from page 2)
(d)
(e)
(a)
(b)
(c)
Other Permanent
Income (Loss) Items
Income (Loss) per
Temporary
Permanent
Differences
Income (Loss)
Income Statement
Differences
Differences
for Allocations to
per Tax Return
Non-ECI and ECI
21c
Gross capital losses from Schedule D,
excluding amounts from pass-through
entities,
abandonment
losses,
and
worthless stock losses
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d
Net gain/loss reported on Form 4797,
line
17,
excluding
amounts
from
pass-through
entities,
abandonment
losses, and worthless stock losses .
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e
Abandonment losses .
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f
Worthless stock losses (attach statement)
g
Other gain/loss on disposition of assets
other than inventory .
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22
Capital loss limitation and carryforward
used
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23
Gross effectively connected income of
foreign banks from books that do not
give
rise
to
U.S.
booked
liabilities
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24
Other
income
(loss)
items
with
differences (attach statement)
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25
Total income (loss) items. Combine
lines 1 through 24 .
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26
Total expense/deduction items (from
Part III, line 33)
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27
Other items with no differences .
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28
Reconciliation totals. Combine lines 25
through 27 .
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Note. Line 28, column (a), must equal Part I, line 11, and column (e) must equal Form 1120-F, page 4, line 29.
Part III
Reconciliation of Net Income (Loss) per Income Statement of Non-Consolidated Foreign Corporations
With Taxable Income per Return (see instructions)
(d)
(e)
(a)
(b)
(c)
Other Permanent
Expense/Deduction Items
Expense per
Temporary
Permanent
Differences
Deduction per
Income Statement
Differences
Differences
for Allocations to
Tax Return
Non-ECI and ECI
1
U.S. current income tax expense
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2
U.S. deferred income tax expense .
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3
Non-U.S. current income tax expense
(other than foreign withholding taxes) .
4
Non-U.S.
deferred
income
tax
expense
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5
Non-U.S. withholding taxes .
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6
Compensation
with
section
162(m)
limitation
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7
Salaries and other base compensation
8
Stock option expense
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9
Other equity-based compensation .
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10
Meals and entertainment .
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11
Fines and penalties
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12
Judgments, damages, awards, and
similar costs
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Schedule M-3 (Form 1120-F) 2018
4
Schedule M-3 (Form 1120-F) 2018
Page
Name of corporation
Employer identification number
Reconciliation of Net Income (Loss) per Income Statement of Non-Consolidated Foreign
Part III
Corporations With Taxable Income per Return (see instructions) (continued from page 3)
(d)
(e)
(a)
(b)
(c)
Other Permanent
Expense/Deduction Items
Expense per
Temporary
Permanent
Differences
Deduction per
Income Statement
Differences
Differences
for Allocations to
Tax Return
Non-ECI and ECI
13
Pension and profit-sharing
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14
Other post-retirement benefits .
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15
Deferred compensation .
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16
Charitable contributions .
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Section 162(r)–FDIC premiums paid by
17
certain large financial institutions (see
instructions)
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18
Current
year
acquisition
or
reorganization
investment
banking
fees, legal and accounting fees .
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Current year acquisition/reorganization
19
other costs .
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20
Amortization/impairment of goodwill
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21
Amortization
of
acquisition,
reorganization, and start-up costs .
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22
Other
amortization
or
impairment
write-offs
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23
Depreciation
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24
Bad debt expense
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25
Purchase versus lease (for purchasers
and/or lessees)
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26a
Interest expense per books .
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b
Interest expense under Regulations
section 1.882-5 (from Schedule I (Form
1120-F), line 23)
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c
Regulations section 1.882-5 allocation
amount
subject
to
deferral
or
disallowance (from Schedule I (Form
(
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1120-F), line 24d) .
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d
Substitute interest payments
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e
Interest
equivalents
(for
example,
guarantee fees) not included on line 26d
27
Substitute dividend payments
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28
Fee and commission expense
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29
Rental expense
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30
Royalty expense .
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31
Expenses
allocable
to
effectively
connected income under Regulations
section 1.861-8 from home office or
other books that do not give rise to U.S.
booked liabilities (from Schedule
H
(Form 1120-F), line 20)
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32
Other expense/deduction items with
differences (attach statement)
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33
Total
expense/deduction
items.
Combine lines 1 through 32. Enter here
and on Part II, line 26 .
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Schedule M-3 (Form 1120-F) 2018
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