IRS Form 8916-A "Supplemental Attachment to Schedule M-3"

IRS Form 8916-A or the "Supplemental Attachment To Schedule M-3" is a form issued by the U.S. Department of the Treasury - Internal Revenue Service.

A PDF of the latest IRS Form 8916-A can be downloaded below or found on the U.S. Department of the Treasury - Internal Revenue Service Forms and Publications website.

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Download IRS Form 8916-A "Supplemental Attachment to Schedule M-3"

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8916-A
OMB No. 1545-0123
Supplemental Attachment to Schedule M-3
Form
2018
Attach to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC, or 1120S.
Department of the Treasury
Go to www.irs.gov/Form1120 for the latest information.
Internal Revenue Service
Name of common parent
Employer identification number
Employer identification number
Name of subsidiary
Part I
Cost of Goods Sold
(a)
(b)
(c)
(d)
Cost of Goods Sold Items
Expense per
Temporary
Permanent
Deduction per Tax
Income Statement
Difference
Difference
Return
1
Amounts attributable to cost flow assumptions
.
2
Amounts attributable to:
a Stock option expense .
.
.
.
.
.
.
.
.
.
b Other equity-based compensation .
.
.
.
.
.
c Meals and entertainment .
.
.
.
.
.
.
.
.
d Parachute payments .
.
.
.
.
.
.
.
.
.
e Compensation with section 162(m) limitation .
.
f
Pension and profit sharing
.
.
.
.
.
.
.
.
g Other post-retirement benefits .
.
.
.
.
.
.
h Deferred compensation .
.
.
.
.
.
.
.
.
i
Reserved .
.
.
.
.
.
.
.
.
.
.
.
.
.
j
Amortization .
.
.
.
.
.
.
.
.
.
.
.
.
k Depletion .
.
.
.
.
.
.
.
.
.
.
.
.
.
l
Depreciation .
.
.
.
.
.
.
.
.
.
.
.
.
m Corporate-owned life insurance premiums .
.
.
n Other section 263A costs .
.
.
.
.
.
.
.
.
3
Inventory shrinkage accruals.
.
.
.
.
.
.
.
4
Excess inventory and obsolescence reserves .
.
5
Lower of cost or market write-downs .
.
.
.
.
6
Other items with differences (attach statement)
.
7
Other items with no differences .
.
.
.
.
.
.
8
Total cost of goods sold. Add lines 1 through 7 in
columns a, b, c, and d. Enter totals on the
applicable Schedule M-3. See instructions .
.
.
8916-A
For Paperwork Reduction Act Notice, see instructions.
Form
(2018)
Cat. No. 48657X
8916-A
OMB No. 1545-0123
Supplemental Attachment to Schedule M-3
Form
2018
Attach to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC, or 1120S.
Department of the Treasury
Go to www.irs.gov/Form1120 for the latest information.
Internal Revenue Service
Name of common parent
Employer identification number
Employer identification number
Name of subsidiary
Part I
Cost of Goods Sold
(a)
(b)
(c)
(d)
Cost of Goods Sold Items
Expense per
Temporary
Permanent
Deduction per Tax
Income Statement
Difference
Difference
Return
1
Amounts attributable to cost flow assumptions
.
2
Amounts attributable to:
a Stock option expense .
.
.
.
.
.
.
.
.
.
b Other equity-based compensation .
.
.
.
.
.
c Meals and entertainment .
.
.
.
.
.
.
.
.
d Parachute payments .
.
.
.
.
.
.
.
.
.
e Compensation with section 162(m) limitation .
.
f
Pension and profit sharing
.
.
.
.
.
.
.
.
g Other post-retirement benefits .
.
.
.
.
.
.
h Deferred compensation .
.
.
.
.
.
.
.
.
i
Reserved .
.
.
.
.
.
.
.
.
.
.
.
.
.
j
Amortization .
.
.
.
.
.
.
.
.
.
.
.
.
k Depletion .
.
.
.
.
.
.
.
.
.
.
.
.
.
l
Depreciation .
.
.
.
.
.
.
.
.
.
.
.
.
m Corporate-owned life insurance premiums .
.
.
n Other section 263A costs .
.
.
.
.
.
.
.
.
3
Inventory shrinkage accruals.
.
.
.
.
.
.
.
4
Excess inventory and obsolescence reserves .
.
5
Lower of cost or market write-downs .
.
.
.
.
6
Other items with differences (attach statement)
.
7
Other items with no differences .
.
.
.
.
.
.
8
Total cost of goods sold. Add lines 1 through 7 in
columns a, b, c, and d. Enter totals on the
applicable Schedule M-3. See instructions .
.
.
8916-A
For Paperwork Reduction Act Notice, see instructions.
Form
(2018)
Cat. No. 48657X
2
Form 8916-A (2018)
Page
Part II
Interest Income
(a)
(b)
(c)
(d)
Interest Income Item
Income (Loss) per Income
Temporary
Permanent
Income (Loss) per
Statement
Difference
Difference
Tax Return
1
Tax-exempt interest
income
2
Interest income from hybrid
securities
3
Sale/lease interest income
Intercompany interest
4a
income — From outside tax
affiliated group
Intercompany interest
4b
income — From tax
affiliated group
5
Other interest income
6
Total interest income. Add
lines 1 through 5 in columns
a, b, c, and d. Enter total on
the applicable Schedule M-3.
See instructions.
Part III
Interest Expense
(a)
(b)
(c)
(d)
Interest Expense Item
Expense per Income
Temporary
Permanent
Deduction per Tax Return
Statement
Difference
Difference
1
Interest expense from
hybrid securities
2
Lease/purchase interest
expense
3a
Intercompany interest
expense — Paid to outside
tax affiliated group
3b
Intercompany interest
expense — Paid to tax
affiliated group
4
Other interest expense
5
Total interest expense. Add
lines 1 through 4 in columns
a, b, c, and d. Enter total on
the applicable Schedule M-3.
See instructions.
8916-A
Form
(2018)
3
Form 8916-A (2018)
Page
Part I. Cost of Goods Sold
Section references are to the Internal Revenue Code unless
otherwise noted.
Line 1
Future Developments
Report differences attributable to cost flow assumptions, for
For the latest information about developments related to
example, differences between book and tax LIFO
computations. Generally, differences in the LIFO reserves for
Form 8916-A and its instructions, such as legislation
book and tax purposes should be reported on this line.
enacted after they were published, go to
www.irs.gov/Form1120.
Line 2n
General Instructions
Report differences attributable to section 263A. For example,
if book inventory costs do not equal section 471 inventory
Purpose of Form
costs, report differences between section 471 inventory
costs and section 263A inventory costs. This includes all
Use Form 8916-A to provide a detailed schedule of the
cost of goods sold differences, not just differences
amounts reported on the applicable Schedule M-3 for cost
attributable to additional section 263A cost adjustments to
of goods sold, interest income, and interest expense.
ending inventory. LIFO taxpayers using the simplified
Who Must File
production method or the simplified resale method should
report the amount of additional section 263A costs
Generally, Form 8916-A must be filed for each separate
computed after LIFO computations. LIFO taxpayers not
entity required to file a Schedule M-3 for Form 1065, Form
using a simplified section 263A method should report costs
1120, Form 1120-C, Form 1120-L, Form 1120-PC, or Form
attributable to additional section 263A prior to performing
1120S.
LIFO computation. Differences due to purchasing, and
However, certain separate entities that (a) are required to
storage and handling costs, should generally be reported on
file a Schedule M-3 and have less than $50 million in total
line 2n (to the extent not already included in lines 2a through
assets at the end of the tax year or (b) are not required to file
2m). Report the additional section 263A cost adjustments to
a Schedule M-3 and voluntarily file a Schedule M-3, are not
ending inventory on line 2n (and the reversal of the prior year
required to file Form 8916-A but may voluntarily do so. See
ending inventory, if applicable).
the instructions for the applicable Schedule M-3 for each
Lines 4 and 5
separate entity.
Note. Schedule M-3 (Form 1120) mixed group filers, all
If the taxpayer does not distinguish between obsolescence
Schedule M-3 (Form 1120-L) filers, and all Schedule M-3
and excess inventory reserves and lower of cost or market
(Form 1120-PC) filers must file Form 8916-A.
write-downs in its general ledger, report all amounts relating
to these reserves on line 4 for excess inventory and
Consolidated groups. In the case of a consolidated tax
obsolescence reserves.
group, a Form 8916-A must be filed as part of the Schedules
M-3 prepared for the parent company, each subsidiary, the
Line 6
eliminations Schedule M-3, and the consolidated Schedule
Attach a statement that separately states and adequately
M-3. It is not required that the supporting detail for Form
discloses the nature and amount of each expense reported
8916-A, Part I, line 6, be presented for the eliminations
on this line. See the instructions for the applicable Schedule
Schedule M-3 or the consolidated Schedule M-3.
M-3 for a definition of “separately stated and adequately
Mixed groups. In the case of a mixed group (as described in
disclosed.” It is not required that the supporting detail for
the instructions for Schedule M-3 for Form 1120, Form
Form 8916-A, Part I, line 6, be presented for the eliminations
1120-L, and Form 1120-PC), a Form 8916-A, if applicable, is
Schedule M-3 or the consolidated Schedule M-3. Report
required at the sub-consolidated level and the sub-
differences between book inventory costs and section 471
consolidated elimination level.
inventory costs on this line.
How To File
Line 7
Attach Form 8916-A to each applicable separate Schedule
Report all other items with no differences on this line. For
M-3.
example, if book inventory costs equal section 471 inventory
costs, this line should report total book inventory and section
Specific Instructions
471 inventory costs without regard to amounts reported on
lines 1 through 5.
Note. Any filer that completes Parts II and III of Schedule
Line 8
M-3 (Form 1120) and Form 8916-A, must complete all
columns, without exception. See the instructions for Parts II
Line 8 should equal the amount reported on Schedule M-3
(Form 1120), Part II, line 17; Schedule M-3 (Form 1120S),
and III of the applicable Schedule M-3.
Part II, line 15; or Schedule M-3 (Form 1065), Part II, line 15.
See the instructions for the applicable Schedule M-3.
4
Form 8916-A (2018)
Page
Part II. Interest Income
Line 2
Report on line 2, column (a), total interest expense from
Line 1
periodic payments from transactions characterized as a
Report on line 1, column (a), tax-exempt interest income
lease for financial accounting and as a purchase for tax
defined under section 103. Complete columns (b) and (c), as
purposes. Report on line 2, column (d), total interest expense
applicable.
from periodic payments from transactions characterized as a
Line 2
purchase for financial accounting and as a lease for tax
purposes. Complete columns (b) and (c), as applicable. See
Report on line 2, column (a), the total amount of interest
the instructions for Schedule M-3, Part III, line 34 (Form
income included on Schedule M-3, Part I, line 11, from
1120), line 35 (Forms 1120-L and 1120-PC), or line 28
hybrid securities characterized as debt for financial
(Forms 1120S and 1065).
accounting and as equity for tax purposes. Report on line 2,
column (d), the total amount of interest income from hybrid
Line 3a
securities characterized as equity for financial accounting
Report on line 3a total intercompany interest expense
and as debt for tax purposes. Complete columns (b) and (c),
included on Schedule M-3, Part I, line 4 but not included on
as applicable. Report interest income from a debt that is
Schedule M-3, Part I, line 11. Report hybrid security interest
both a hybrid debt and a related party debt on line 2 and not
expense or deduction on line 1 and purchase/lease interest
on line 4a or 4b.
expense or deduction on line 2 and not on line 3a.
Line 3
Line 3b
Report on line 3, column (a), the total interest income from
Report on line 3b total intercompany interest expense to an
periodic payments from transactions characterized as a
entity within the tax affiliated group. Report hybrid security
lease for financial accounting and as a sale for tax purposes.
interest expense or deduction on line 1 and purchase/lease
Report on line 3, column (d), the total interest income from
interest expense or deduction on line 2 and not on line 3b.
periodic payments from transactions characterized as a sale
Note. Report interest expense from a debt that is both a
for financial accounting and as a lease for tax purposes.
hybrid debt and a related party debt on line 1 and not on line
Complete columns (b) and (c), as applicable. See the
3a or 3b.
instructions for sale versus lease for Schedule M-3, Part II,
Line 4
line 18 (Forms 1120 and 1120-L), line 17 (Form 1120-PC), or
line 16 (Forms 1120S and 1065).
Report on line 4 total interest expense not required to be
Line 4a
reported on lines 1 through 3b.
Line 5
Report on line 4a total intercompany interest income from an
entity included on Schedule M-3, Part I, line 4 but not
Line 5 must equal the amounts for all columns reported on
included on Schedule M-3, Part I, line 11. Report hybrid
Schedule M-3 (Form 1120), Part III, line 8; Schedule M-3
security interest income on line 2 and sale/lease interest
(Forms 1120-PC and 1120-L), Part III, line 36; Schedule M-3
income on line 3 and not on line 4a.
(Form 1065), Part III, line 27; or Schedule M-3 (Form 1120S),
Line 4b
Part III, line 26. See the instructions for the applicable
Schedule M-3.
Report on line 4b total intercompany interest income from an
entity within the tax affiliated group. Report hybrid security
Paperwork Reduction Act Notice. We ask for the
interest income on line 2 and sale/lease interest income on
information on this form to carry out the Internal Revenue
line 3 and not on line 4b.
laws of the United States. You are required to give us the
Note. Report interest income from a debt that is both a
information. We need it to ensure that you are complying
hybrid debt and a related party debt on line 2 and not on line
with these laws and to allow us to figure and collect the right
4a or 4b.
amount of tax.
Line 5
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
Report on line 5 total interest income not required to be
unless the form displays a valid OMB control number. Books
reported on lines 1 through 4b.
or records relating to a form or its instructions must be
Line 6
retained as long as their contents may become material in
Line 6 must equal the amount for all columns reported on
the administration of any Internal Revenue law. Generally,
Schedule M-3, Part II, line 13 (Forms 1120, 1120-L, and
tax returns and return information are confidential, as
1120-PC) or line 11 (Forms 1120S and 1065). See the
required by section 6103.
instructions for the applicable Schedule M-3.
The time needed to complete and file this form will vary
Part III. Interest Expense
depending on individual circumstances. The estimated
burden for business taxpayers filing this form is approved
Line 1
under OMB control number 1545-0123 and is included in the
Report on line 1, column (a), total interest expense from
estimates shown in the instructions for their business income
hybrid securities characterized as debt for financial
tax return.
accounting and as equity for tax purposes. Report on line 1,
If you have comments concerning the accuracy of these
column (d), total interest expense from hybrid securities
time estimates or suggestions for making this form simpler,
characterized as equity for financial accounting and as debt
we would be happy to hear from you. See the instructions
for tax purposes. Complete columns (b) and (c), as
for the tax return with which this form is filed.
applicable. Report interest expense from a debt that is both
a hybrid debt and a related party debt on line 1 and not on
line 3a or 3b.
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