9501

[#1]

The following diagnostic is generating:

Schedule M-3, Part II, line 26, column (d) does not equal Form 1065, page 6, Analysis of Net Income (Loss) per Return, line 1.

Solution:

Entering Data in Schedule M-3 (Book Tax Adjustment)

1. Navigate to Screen 27 – Schedule M-1, Schedule M-3 (Book Tax-Adj).
2. On the left side, choose Schedule M-3. This opens Screen 27.2.
3. Scroll to the Part I section and locate the field “Worldwide consolidated net income or loss from the income statement.”
4. Enter the net income (from the source identified above) in this field.

The amount entered should represent the book income from the Corporation, S Corporation, or Partnership. Schedule M-3 uses this figure as the base number and applies the differences entered to ultimately calculate the tax return figures.

Use these input fields to complete the reconciliation from worldwide consolidated net income (from the income statement source identified above) to the net income or loss per income statement of includible entities. Supporting statements are generated automatically for any line item that requires an attached schedule.

Refer to the Schedule M-3 instructions for specific guidance on the descriptions of amounts for each line.

Note: When entering the income or loss for an entity, include the entity’s name as well as its EIN (if applicable).

[cpataxcounselors]

Match Analysis of Income per return line 1 with SCH M-3 Part II line 26

this is annoying.  Does not provide a reconciliation form or place to see what the difference is and prevents filing