No Job Name - Internal Revenue Service...2010-2011 Schedule M-3 Profiles And Schedule UTP Filing Status By Charles Boynton, Portia DeFilippes, Ellen Legel, and Lisa Rupert Table of

2010-2011 Schedule M-3 ProfilesAnd Schedule UTP Filing Status

by Charles Boynton, Portia DeFilippes, Ellen Legel, and

Lisa Rupert

Reprinted from Tax Notes, November 3, 2014, p. 535

tax notesVolume 145, Number 5 November 3, 2014

®

(C)

TaxA

nalysts2014.A

llrightsreserved.

TaxA

nalystsdoes

notclaim

copyrightin

anypublic

domain

orthird

partycontent.

2010-2011 Schedule M-3 ProfilesAnd Schedule UTP Filing StatusBy Charles Boynton, Portia DeFilippes,

Ellen Legel, and Lisa Rupert

Table of Contents

I. Executive Summary and Conclusions . . . . 536A. General Conclusions . . . . . . . . . . . . . . . 536B. Discussion . . . . . . . . . . . . . . . . . . . . . . 536C. Conclusions: SEC 10K/Public . . . . . . . . 537D. Conclusions: Audited . . . . . . . . . . . . . . 537E. Conclusions: Unaudited . . . . . . . . . . . . 538

II. Schedules M-3 and UTP Background . . . . 538A. Schedule M-3 Overview . . . . . . . . . . . . 538B. Schedule M-3 Versus Schedule UTP . . . . 540C. Book-Tax Differences and Signs . . . . . . . 541D. Data Source . . . . . . . . . . . . . . . . . . . . 541E. Limits of Schedule M-3 Data . . . . . . . . . 542

F. Reconciling Counts of Schedule UTP . . . 542III. 2011 Worldwide Income to Tax Less

Credits . . . . . . . . . . . . . . . . . . . . . . . . . . 543A. By Asset Size, FS Type, and UTP

Status . . . . . . . . . . . . . . . . . . . . . . . . . 543B. By Industry and UTP Status . . . . . . . . . 548

IV. 2010 and 2011 Adjusted Mini M-3 . . . . . . . 549A. Mini M-3: Specified Versus Other

Lines . . . . . . . . . . . . . . . . . . . . . . . . . 549B. COGS and Other Adjustments . . . . . . . . 549

V. Analysis of Mini M-3 . . . . . . . . . . . . . . . 551A. Mini M-3 by FS Type by UTP Status . . . 551B. SEC Form 10K/Public Mini M-3 . . . . . . 552C. Audited Mini M-3 . . . . . . . . . . . . . . . . 553D. Unaudited Mini M-3 . . . . . . . . . . . . . . 555

Charles Boynton ([email protected]) is aprogram manager and senior program analyst in theIRS Large Business and International Division Officeof Planning, Analysis, Inventory, and Research(PAIR). He was a member of the original Treasury-IRS Schedule M-3 team in 2003 while serving withthe Treasury Office of Tax Analysis (OTA) and is nowa member of the LB&I Schedule M-3 study group.Portia DeFilippes ([email protected])is a financial economist in the OTA’s EconomicModeling and Computer Application Division. EllenLegel ([email protected]) is a senior economist andSchedule M-3 analyst with PAIR/LB&I and a mem-ber of the LB&I Schedule M-3 study group. She wasa designer for the taxpayer information gatewayspecial Schedule M-3 reports and was a corporationtax program lead analyst in the Statistics of Incomedivision. She has worked at the SEC and in privatesector investment banking. Lisa Rupert ([email protected]) is a compliance management team managerin compliance management operations with PAIR/LB&I and a member of the LB&I Schedule M-3 studygroup. She was a prefiling technical guidance tech-nical adviser for compliance assurance process andfor Schedule M-3. She has worked for two Big Fouraccounting firms and in the private sector in federaland state income tax compliance, planning, andconsulting.

This study was prepared for the June 2014 IRSResearch Conference. The authors thank SOI formaking its final corporate files available to create the2010 through 2011 Schedule M-3 ‘‘First Look’’ datasets. Those data sets are available as zip files in anExcel format by e-mail request to [email protected]. The authors also thank RichardBartlett, Thomas Brandt, Paul Coates, Paul Feinberg,Martha Harris, Christopher Larsen, Catherine Leon-ard, Dave Macias, John Miller, Stephen Moore, CliffScherwinski, Matthew Smith, Kenneth Szeflinski,David Wagner, and Kimmy Wang.

The study presents and compares 2010 and 2011Schedule M-3 and Form 1120 tax return data profilesfor Schedule UTP (uncertain tax position statement)filers and nonfilers with $100 million or more inassets. The authors conclude that filing ScheduleUTP does not identify the same tax compliance risksas reporting Schedule M-3 tax-income-decreasingbook-tax differences. They also conclude that Sched-ule UTP and Schedule M-3 are complementary andnot duplicative for tax compliance risk analysis. Onlya minority of large corporations file Schedule UTP,while all file Schedule M-3.

The opinions expressed are those of the authorsand do not necessarily represent positions of theTreasury Department or the IRS.

tax notes™

SPECIAL REPORT

TAX NOTES, November 3, 2014 535

(C) T

ax Analysts 2014. A

ll rights reserved. Tax A

nalysts does not claim copyright in any public dom

ain or third party content.

E. General Conclusions . . . . . . . . . . . . . . . 556VI. References . . . . . . . . . . . . . . . . . . . . . . . . 556

I. Executive Summary and Conclusions

A. General Conclusions

The study presents and compares 2010 and 2011Schedule M-3 and Form 1120 tax return data pro-files for Schedule UTP (uncertain tax position state-ment) filers and nonfilers with $100 million or morein assets. It includes 12,044 corporations in 2010 and12,307 corporations in 2011. In 2010, Schedule UTPfilers decrease tax income using Schedule M-3book-tax differences less (as a percentage of totalpretax book income) than Schedule UTP nonfilersfor all financial statement types (SEC 10K/public,audited, and unaudited). In 2011, Schedule UTPfilers decrease tax income using book-tax differ-ences less than Schedule UTP nonfilers for SEC10K/public financial statements and decrease taxincome no more than nonfilers for audited financialstatements. The authors conclude that filing Sched-ule UTP does not identify the same tax compliancerisks as reporting Schedule M-3 tax-income-decreasing book-tax differences. They also concludeSchedule UTP and Schedule M-3 are complemen-tary and not duplicative for tax compliance riskanalysis. The authors observe that for all financialstatement types, only a minority of large corpora-tions file Schedule UTP, while all file Schedule M-3.

B. DiscussionTaxpayers prepare corporate and partnership tax

returns by adjusting amounts from their financialstatements or books and records. The goal of theSchedule M-3 reconciliation is to increase taxpayertransparency to the IRS regarding the adjustmentsmade to financial statements or books and recordsin preparing the tax return and to assist the IRS inselecting returns and issues for audit only when taxcompliance risk is present.

Schedule UTP was introduced in 2010 for corpo-rations with assets of $100 million or more withaudited financial statements reporting UTPs in theincome tax footnote and for some related corpora-tions. The goal was to increase taxpayer transpar-ency to the IRS regarding items giving rise tofederal income tax UTPs in the taxpayer’s financialstatements and, again, to assist the IRS in selectingappropriate returns and issues for audit.

The study presents and compares Schedule M-3and Form 1120 tax return data profiles for ScheduleUTP filers and nonfilers with $100 million or morein assets in 2010 and 2011. It includes 12,044 corpo-rations in 2010 and 12,307 corporations in 2011.Only a minority of corporations with $100 millionor more in assets filed Schedule UTP in 2010 and2011. Nonfilers either failed to file or were not

required to file because they had no federal incometax UTPs. In 2010, 1,856 corporations (15.4 percent)in the study population filed Schedule UTP. In 2011,2,074 corporations (16.9 percent) filed ScheduleUTP.

In 2010 the study includes 3,446 corporationswith SEC 10K/public financial statements, 5,218with audited financial statements, and 3,380 withunaudited financial statements. In 2011 the studyincludes 3,370 corporations with SEC 10K/publicfinancial statements, 5,396 with audited financialstatements, and 3,540 with unaudited financialstatements.

The rate of filing Schedule UTP varies across thethree financial statement types. In the study popu-lation with SEC 10K/public financial statements,1,093 corporations (31.7 percent) filed ScheduleUTP in 2010, and 1,227 (36.4 percent) filed it in 2011.In the study population with audited financialstatements, 493 corporations (9.4 percent) filedSchedule UTP in 2010, and 535 (9.9 percent) filed itin 2011. In the study population with unauditedfinancial statements, 269 corporations (8 percent)filed Schedule UTP in 2010, and 311 (8.8 percent)filed it in 2011.

The study uses a ‘‘Mini M-3’’ format to summa-rize the book, tax, and book-tax difference data inSchedule M-3, Parts II and III. The study alsopresents distribution tables of key tax and ScheduleM-3 items by Schedule L total assets, financialstatement type, and the presence or absence ofSchedule UTP.

In the Mini M-3 format, the aggregate amountsreported on the Schedule M-3, Parts II and III ‘‘otherwith difference’’ lines are compared with the aggre-gate amounts reported on the Schedule M-3, Parts IIand III ‘‘specified’’ lines. A Schedule M-3 cost ofgoods sold (COGS) adjustment is used to removethe cost of securities, commodity contracts, andother financial products reported in COGS by somecorporations and to reconcile the COGS amountreported by the IRS Statistics of Income corporatedata file. The Mini M-3 format also makes relatedspecial adjustments to ‘‘other income with differ-ence’’ and ‘‘other items with no difference’’ linesand divides the adjusted ‘‘other items with nodifference’’ line into ‘‘other income with no differ-ence’’ and ‘‘other expense/deduction with no dif-ference’’ lines.

After making the data adjustments, the Mini M-3format has 10 categories of ‘‘specified’’ lines, ‘‘otherwith difference’’ or ‘‘no difference’’ lines, and sub-totals or totals:

• other income with no difference (Part II, line 28adjusted) (gross receipts);

• COGS (Part II, line 17 adjusted);• adjusted gross profit;

COMMENTARY / SPECIAL REPORT

536 TAX NOTES, November 3, 2014

(C) T

ax Analysts 2014. A




• specified income (Part II, lines 1-16, 18-24, and29a-29c);

• other income with difference (Part II, line 25adjusted);

• adjusted total income;• specified expense/deduction (Part III, lines

3-36);• other expense/deduction with difference (Part

III, line 37);• other expense/deduction with no difference

(an adjustment to Part II, line 28); and• pretax book income.The report tables and text state all Mini M-3

category data as a percentage of adjusted total bookincome to facilitate comparisons between groupswith corporations that differ in size.

In comparing the Schedule M-3 characteristics ofSchedule UTP filers and nonfilers for the threefinancial statement types in the Mini M-3 format, atemporary or permanent book-tax difference com-ponent for any specified-versus-other category isidentified as large in relative magnitude if it is 1.5percent or more in negative or positive (absolute)magnitude as a percentage of adjusted total bookincome. Total pretax income book-tax difference issimilarly described as large in relative magnitude ifit is 1.5 percent or more in negative or positive(absolute) magnitude as a percentage of adjustedtotal book income. Also, in comparing the ScheduleM-3 characteristics of Schedule UTP filers and non-filers for the three financial statement types, totalpretax income book-tax difference is expressed as apercentage of total pretax book income.

The study presents tables for 2011 that includecomparative tax data for 41,636 corporations thatfile Schedule M-3, including 12,307 corporationswith total assets of $100 million or more that arepotentially subject to filing Schedule UTP. The12,307 corporations (30 percent) with assets of $100million or more report 98 percent of assets, approxi-mately 100 percent of net aggregate worldwideincome, 99 percent of the nonincludable foreignincome, approximately 100 percent of net aggregatepretax book income, 95 percent of the net negative(tax-income-decreasing) temporary book-tax differ-ences, 90 percent of the net positive (tax-income-increasing) permanent book-tax differences, and 95percent of tax less credits for the 41,636 corpora-tions.

The 2,074 corporations (5 percent) with assets of$100 million or more that filed Schedule UTP report70 percent of assets, 94 percent of worldwide in-come, 90 percent of the nonincludable foreign in-come, 91 percent of pretax book income, 108 percentof the net negative temporary book-tax differences,

12 percent of the net positive permanent book-taxdifferences, and 66 percent of tax less credits for the41,636 corporations.

In contrast, the 10,233 corporations (25 percent)with assets of $100 million or more that did not fileSchedule UTP (were not required to file or failed tofile) report 28 percent of assets, 6 percent of world-wide income, 9 percent of nonincludable foreignincome, 9 percent of the pretax book income, netpositive temporary book-tax differences equal to -12percent of the net negative temporary book-taxdifferences, 77 percent of the net positive perma-nent book-tax differences, and 29 percent of tax lesscredits for the 41,636 corporations.

C. Conclusions: SEC 10K/PublicThe requirements to file Schedule UTP in 2010

and 2011 identify a minority group of corporationswith SEC 10K/public financial statements with$100 million or more in assets that has UTPs and, inaggregate, reduces tax income with book-tax differ-ences reported on Schedule M-3 (a 27.8 percentreduction in pretax book income for 2010 and a 20.4percent reduction in 2011). However, similar corpo-rations in financial statement type and asset size notrequired to file Schedule UTP (or failing to file)reduce tax income with book-tax differences to arelatively greater extent (a 37.2 percent reduction inpretax income for 2010 and a 40.5 percent reductionin 2011). For 2010 and 2011, 31.7 percent and 36.4percent, respectively, of the SEC 10K/public corpo-rations filed Schedule UTP, while 68.3 percent and63.6 percent, respectively, did not file a ScheduleUTP. The conclusion for corporations with SEC10K/public financial statements with $100 millionor more in assets is that filing Schedule UTP doesnot identify the same tax compliance risks as report-ing Schedule M-3 tax-income-decreasing book-taxdifferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with SEC 10K/publicfinancial statements that file Schedule UTP.

D. Conclusions: AuditedThe requirements to file Schedule UTP in 2010

identify a minority group of corporations withaudited financial statements with total assets of$100 million or more that has UTPs and, in aggre-gate, increases tax income with book-tax differencesreported on Schedule M-3. (This group of taxpayershad a 65.1 percent increase to pretax book income.)For 2011, the requirements to file Schedule UTPidentify a minority group of corporations withaudited financial statements with total assets of$100 million or more that has UTPs and, in aggre-gate, reduces tax income with book-tax differencesreported on Schedule M-3 (a 46.9 percent reduction



(C) T

ax Analysts 2014. A




in pretax book income). Similar corporations infinancial statement type and asset size not requiredto file Schedule UTP (or failing to file) reduce taxincome with book-tax differences for both 2010 and2011 to a relatively greater or same extent (a 29.8percent reduction in pretax book income for 2010and a 47.6 percent reduction in 2011). For 2010 and2011, 9.4 percent and 9.9 percent, respectively, of theaudited corporations filed Schedule UTP, while 90.6percent and 90.1 percent, respectively, did not file aSchedule UTP. The conclusion for corporations withaudited financial statements with $100 million ormore in assets is that filing Schedule UTP does notidentify the same tax compliance risks as reportingSchedule M-3 tax-income-decreasing book-tax dif-ferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with audited finan-cial statements that file Schedule UTP.

E. Conclusions: UnauditedThe requirements to file Schedule UTP in 2010

and 2011 identify a minority group of corporationswith unaudited financial statements with total as-sets of $100 million or more that has UTPs and, inaggregate, increase tax income with book-tax differ-ences reported on Schedule M-3. (This group oftaxpayers had an increase in pretax book income of123.6 percent for 2010 and 81.2 percent for 2011.)Similar corporations in financial statement type andasset size not required to file Schedule UTP (orfailing to file) reduce tax income with book-taxdifferences in 2010 to a relatively greater extent butnot in 2011 (a reduction of pretax income of 64.5percent for 2010 and an increase of 114 percent for2011). For 2010 and 2011, 8 percent and 8.8 percent,respectively, of the unaudited corporations filedSchedule UTP, while 92 percent and 91.2 percent,respectively, did not file a Schedule UTP. The con-clusion for corporations with unaudited financialstatements with $100 million or more in assets isthat filing Schedule UTP does not identify the sametax compliance risks as reporting Schedule M-3tax-income-decreasing book-tax differences. Thefurther conclusion is that Schedule UTP supple-ments, but does not replace, Schedule M-3 fortransparency and return selection for the minorityof large corporations with unaudited financial state-ments that file Schedule UTP.

II. Schedules M-3 and UTP Background

A. Schedule M-3 OverviewTaxpayers prepare corporate and partnership tax

returns by adjusting amounts from their financialstatements or books and records. The goal of theSchedule M-3 reconciliation is to increase taxpayer

transparency to the IRS regarding the adjustments(book-tax differences) made to financial statementsor books and records in preparing the tax returnand to assist the IRS in selecting returns and issuesfor audit only when tax compliance risk is present.

Schedule M-3 was first introduced in 2004 forU.S. corporations with total assets of $10 million ormore filing U.S. income tax return Form 1120. Itreplaced four decades of use of the less-structuredSchedule M-1 for these corporations for the re-quired reconciliation of financial statement incometo tax income.1

A 1999 Treasury report and Treasury testimony in2000 by then-Treasury Assistant Secretary for TaxPolicy Jonathan Talisman viewed the 1990s’ widen-ing difference between the sum of corporate finan-cial statement income (book income) and federalincome tax expense reported on Form 1120, Sched-ule M-1, lines 1 and 2, and tax income reported onForm 1120, page 1, line 28, as a possible indicator ofcorporate tax shelter activity, but also noted thedifficulty in interpreting Schedule M-1 book-taxdifference data.2

Mills and Plesko (2003) proposed a redesign ofSchedule M-1 to increase the transparency of thecorporate book-to-tax reconciliation and to improve

1This report repeats some material from Charles Boynton,Portia DeFilippes, and Ellen Legel (2005, 2006a, 2006b, and2008); Boynton, DeFilippes, Legel, and Todd Reum (2011 and2014); Boynton and William Wilson (2006); and Boynton andBarbara Livingston (2010). Our tax return table values may notadd as a result of rounding. The SOI corporate data file for yeart includes all tax years ending between July of calendar year tand June of calendar year t+1. Effective for tax years ending onor after December 31, 2004, Schedule M-3 replaced ScheduleM-1 for corporations filing Form 1120 and reporting total assetsof $10 million or more on Form 1120, Schedule L. Effective fortax years ending on or after December 31, 2006, for corporationswith total assets of $10 million or more, Schedule M-3 applies toForm 1120S for S corporations, to Form 1120-C for cooperativeassociations, to Form 1120-L for life insurance companies, and toForm 1120-PC for property and casualty insurance companies.Effective for tax years ending on or after December 31, 2006,Schedule M-3 also applies to Forms 1065 and 1065-B forpartnerships with total assets of $10 million or more and tosome other partnerships. Effective for tax years ending on orafter December 31, 2007, a special Schedule M-3 applies to Form1120-F for foreign corporations with effectively connected U.S.income and total assets of $10 million or more. Schedule M-1continues to apply to Form 1120-RIC for regulated investmentcompanies, to Form 1120-REIT for real estate investment trusts,and to all corporations with total assets of less than $10 million.Effective for tax years ending December 31, 2014, and later,corporations and partnerships with $10 million or more inassets but less than $50 million in assets, and partnerships withless than $10 million in assets required to file Schedule M-3,would be permitted to file Schedule M-3, Part I, and to fileSchedule M-1 in place of Schedule M-3, Parts II and III if they sochoose.

2See Treasury Department (1999) and Talisman (2000). Seealso Mills (1998) cited by Treasury (1999, at 32, n.118).



(C) T

ax Analysts 2014. A




data interpretability.3 The Mills and Plesko (2003)Schedule M-1 redesign recommendations arelargely reflected in Schedule M-3, particularly inPart I.4

Part I of Schedule M-3 is important and unique intax reporting in that it lists the adjustments made toworldwide consolidated income in the parent cor-poration’s financial statements to determine thebook income of the includable corporations in thetax return.5 We also use Part I data to identify eachcorporation financial statement type as SEC Form10K/public, audited, or unaudited.6

Parts II and III of Schedule M-3 are a morestructured listing of book-tax differences than onSchedule M-1 and specify several fixed categoriesas well as two ‘‘other with difference’’ categories.The fixed categories are machine readable. Thebook income and tax income amounts generatingthe book-tax differences are listed, as well as thebook-tax difference and the name for the line.

On Parts II and III of Schedule M-3, book-taxdifferences are characterized as temporary or per-manent. Temporary differences are items of incomeor expense that are recognized for both financialand tax reporting but appear in different periods.Permanent differences are items of income or ex-pense that are recognized for either financial or taxreporting, but not both.7

Parts II and III contain four columns. Column (a)represents financial statement (book) income orexpense amounts using the financial statementsource determined in Part I. Column (d) representsamounts as shown on the tax return. The book-taxdifference between the amount shown in column (a)and the amount shown in column (d) is reportedeither as a temporary difference amount in column(b) or as a permanent difference amount in column(c).

Note that on Schedule M-3, a negative totalbook-tax difference adjustment occurs if tax incomeis below book income. Further note that in ourstudy, we conform the sign of Part III data to agreewith Part II so that a negative book income or taxincome item always reduces total book income ortax income and a negative book-tax difference re-duces tax income.8

We impose some minimum reconciliation re-quirements on the returns included in our study.9

This is the seventh article in a series by theauthors researching the differences between finan-cial statement income (book income) and tax in-come as reported on U.S. corporate income taxreturns.10 This seventh article analyzes final data for

3See Mills and Plesko (2003) for the proposed redesign ofSchedule M-1.

4For a discussion of the development of Schedule M-3, seeBoynton and Mills (2004).

5A major problem with interpreting Schedule M-1 data in thepast was the fact that the taxpayer was allowed to report astarting Schedule M-1, line 1 book income amount withoutreconciling the reported book income amount to financialaccounting income on the taxpayer’s financial statements.Schedule M-3, Part I, line 11 defines the starting book income forthe book-to-tax reconciliation in Parts II and III. The May 10,2013, IRS notice, effective December 31, 2014, permitting the useof Schedule M-1 by corporations and partnerships with $10million but less than $50 million in assets in place of ScheduleM-3, Parts II and III, requires Schedule M-3, Part I, and requiresthat Schedule M-1, line 1 book income equal Schedule M-3, line11.

6We define SEC Form 10K/public to include any tax returnon which (1) Schedule M-3, Part I, line 1a indicated that an SECForm 10K was filed or (2) Part I, line 3a indicated that thecorporation had publicly traded common stock. Some corpora-tions indicate the first without the second, which may meanpublicly traded debt or a reporting error. Other corporationsreport the second without the first, suggesting a reporting error.We make use of the presence of either indicator. We defineaudited to include any tax return on which Schedule M-3, PartI, line 1b indicates that certified audited financial statementswere prepared and our requirements for SEC Form 10K/publicare not met. We define unaudited to include all other returns.

7Temporary differences are important in tax administrationbecause they may identify that an item is being included in thewrong tax year. For example, deferring the recognition of $1

billion of income for 30 years (or accelerating the recognition of$1 billion of deductions by 30 years) involves a substantial timevalue of money change in the value of the tax due. In contrast totemporary differences, permanent differences are adjustmentsthat arise as a result of fundamental permanent differences infinancial and tax accounting rules. These differences result fromtransactions that will not reverse in subsequent periods. Infinancial statement reporting under generally accepted account-ing principles, permanent differences are not considered in theFinancial Accounting Standard No. 109 (ASC Topic 740) com-putation of deferred tax assets and liabilities but do have adirect impact on the effective tax rate. Therefore, permanentdifferences can substantially influence reported financial earn-ings per share computations, and, for public companies, stockprices. Accordingly, permanent differences of a given size mayrepresent a greater audit risk than temporary differences of thesame size.

8See Section II.C of this report for a discussion of signconventions.

9Some companies with assets of less than $10 million volun-tarily filed Schedule M-3. We do not analyze that data. Ourminimum reconciliation tests require Schedule M-3 data agree-ment within tolerances of 1 percent of the maximum absolutevalue of the amounts on Part II, line 30 for income between PartI, line 11 and Part II, line 30, column (a) and for expenses/deductions between Part III, line 38 (line 36 through 2009) andthe carryover line Part II, line 27. The reconciliations of thesubset of corporations meeting our minimum data and recon-ciliation tests for this 2010 and 2011 Schedule M-3 study with thefull 2010 and 2011 SOI corporate files are presented in Distribu-tion Table D3 of the full Schedule M-3 ‘‘First Look’’ data sets for2010 and 2011 available on request.

10See Boynton, DeFilippes, and Legel (2005, 2006a, 2006b,and 2008); and Boynton, DeFilippes, Legel, and Reum (2011 and2014). The first two articles analyze corporate Form 1120,Schedule M-1 reporting for tax years 1990-2003. The third article


(Footnote continued in next column.) (Footnote continued on next page.)


(C) T

ax Analysts 2014. A




the 2010 and 2011 corporate Form 1120, ScheduleM-3 with Schedule UTP filing status.

B. Schedule M-3 Versus Schedule UTPSchedule M-3 was introduced in 2004 for corpo-

rations with assets of $10 million or more to assistthe IRS in reconciling financial statement income totax income, including identifying temporary andpermanent book-tax differences. Taxpayers preparecorporate and partnership tax returns by adjustingamounts from their financial statements. The goal isto increase taxpayer transparency regarding theadjustments made to the financial statements toprepare the tax return. Many of the items that mustbe listed on Schedule UTP generate or affect book-tax differences that must be included on ScheduleM-3. Schedule M-3 reports dollar amounts; Sched-ule UTP does not.

Schedule UTP was introduced in 2010 for corpo-rations with assets of $100 million or more withaudited financial statements reporting UTPs in theincome tax footnote and for some related corpora-tions.11 The purpose was to share with the IRS someof the taxpayer information calculated as part ofpreparing the financial statement income tax foot-note.12 The goal was to increase taxpayer transpar-ency regarding items giving rise to federal incometax UTPs in the taxpayer’s financial statements.

Schedule UTP asks for relevant code sections anda concise description of issues, without dollaramounts, for the UTPs that affect the financial-statement-reported U.S. federal income tax liabili-ties of some corporations that issue or are includedin audited financial statements. The corporate assetreporting threshold is assets of $100 million or morein tax years 2010 and 2011, $50 million or more intax years 2012 and 2013, and $10 million or more intax years ending after December 30, 2014.13

Items listed on Schedule UTP relate to amountsor positions reported on other forms or schedules ofthe current tax return or a prior tax return. Many ofthe Schedule UTP items concern the temporary orpermanent book-tax differences reported on Parts IIand III of Schedule M-3. (Note that adjustments canbe made during an examination for amounts re-ported on Part I of Schedule M-3 because of errorsin the calculations of the income or loss of theincludable and excludable entities. However, it isunlikely taxpayers would report a Schedule UTPitem that would relate to whether an entity shouldbe included or excluded from the consolidated taxreturn.) Other Schedule UTP items may concern taxcredit amounts or international issues that are notreported on Schedule M-3 but are instead reportedon the forms and schedules specific to those items(that is, Form 6765, ‘‘Credit for Increasing ResearchActivities,’’ or Form 5471, ‘‘Information Return ofU.S. Persons With Respect to Certain Foreign Cor-porations’’).14

In summary:• Schedule M-3:

• Schedule M-3 is a crosswalk from the tax-payer’s financial statements to its tax return.

• Part I removes the income (loss) of all enti-ties included in the financial statements butnot included in the consolidated tax return,and it adds the income (loss) of all entitiesnot included in the financial statements butincluded in the consolidated tax return.

• Parts II and III require taxpayers to reportthe dollar amounts of the temporary andpermanent adjustments they make to create

in this series analyzes advance file data for the 2004 corporateForm 1120, Schedule M-3. The fourth article analyzes final datafor the 2005 corporate Form 1120, Schedule M-3, and updatesthe prior 2004 report using final 2004 data. The fifth articleanalyzes final data for the 2006 and 2007 corporate Form 1120,Schedule M-3, and earlier Schedule M-1 data from 1994 through2005 and Schedule M-3 data from 2004-2005. The sixth articleanalyzes final data for 2008, 2009, and 2010 corporate Form 1120,Schedule M-3 as well as earlier Schedule M-3 data for 2006 and2007 and information on 2010 Schedule UTP filing status.

11For a discussion of the UTPs reported on Schedule UTPand an analysis of how Schedule UTP reporting requirementsaffect corporate tax and financial reporting behavior, see Towery(2013).

12Footnote reporting of UTPs is required by U.S. GAAPunder FAS No. 109 (ASC 740) and Financial Accounting Stan-dards Board Interpretation No. 48 (ASC 740-10).

13Schedule UTP requires the reporting of each U.S. federalincome tax position taken by an applicable corporation on itsU.S. federal income tax return for which two conditions are

satisfied: (1) the corporation has taken a tax position on its U.S.federal income tax return for the current tax year or for a priortax year; and (2) either the corporation or a related party hasrecorded a reserve for that tax position for U.S. federal incometax in audited financial statements, or the corporation or relatedparty did not record a reserve for that tax position because thecorporation expects to litigate the position. A tax position forwhich a reserve was recorded (or for which no reserve wasrecorded because of an expectation to litigate) must be reportedregardless of whether the audited financial statements areprepared based on U.S. GAAP, international financial reportingstandards, or other country-specific accounting standards, in-cluding a modified version of any of the above (for example,modified GAAP).

14Although Schedule M-3 does not deal with credits, a directcorrelation may exist between an item on Schedule M-3 and acredit. For example, there is a direct correlation between Sched-ule M-3 research and development costs on Part III, line 36,column (d), and credit-eligible expenses on Form 6765, andtherefore with the research credit. Section 41, governing theresearch credit, is the most frequent code section cited in 2010and 2011 on Schedule UTP, Part I. The second most frequentcode section cited is section 482, for transfer pricing.


(Footnote continued in next column.)


(C) T

ax Analysts 2014. A




their tax return from their financial state-ments as well as the initial book income andfinal tax income amounts for each scheduleditem.

• Schedule UTP:• Schedule UTP reports the federal income tax

UTPs reserved on the taxpayer’s financialstatements for items on the tax return thatthe taxpayer acknowledges the IRS maychallenge.

• Schedule UTP discloses relevant code sec-tions and provides a concise description ofthe UTPs without reporting the dollaramounts.

• Items listed on Schedule UTP may relate tothe amounts reported on Schedule M-3.

• Some items reported on Schedule UTP mayrelate to items not reported on Schedule M-3(that is, tax credit items).15

Schedule M-3 and Schedule UTP are complemen-tary sources of taxpayer transparency that do notoverlap and do not contain duplicative information.Sections V.A to V.D of this report investigate someof the Schedule M-3 characteristics of Schedule UTPfilers and nonfilers. Tables 1A, 1B, 2A, 2B, 4, 5, and6 present additional data on Schedule UTP filersand nonfilers.

C. Book-Tax Differences and SignsBook income is the financial statement income of

the entity filing a corporate or partnership incometax return. For consolidated corporations filing U.S.Form 1120, book income is the consolidated finan-cial statement income of the includable corpora-tions joining in the consolidated tax return and willoften differ from the worldwide consolidated in-come reported by the parent corporation’s world-wide consolidated financial statements. Part I ofSchedule M-3 reconciles worldwide consolidatedfinancial statement income to book income.

We compare pretax book income (book incomemeasured before federal income tax expense) withtax income and calculate book-tax differences aspretax differences, consistent with the book-taxdifference literature since Talisman (2000).16

The book-tax difference literature before the in-troduction of Schedule M-3 defined the sign of thedifference between pretax book income and tax

income as ‘‘book minus tax,’’ resulting in a positivedifference if the book amount is higher than the taxamount. The reconciliation rules of Schedule M-3reverse this prior convention to ‘‘tax minus book.’’

For Schedule M-3, the temporary and permanentadjustment amounts reported in columns (b) and (c)of Parts II and III are the amounts that are added tocolumn (a) book income to determine column (d)tax income. A positive total book-tax difference incolumns (b) and (c) means that the tax amount ishigher than the book amount. A negative totalbook-tax difference in columns (b) and (c) meansthat the tax amount is lower than the book amount.

In our report, the sign of Schedule M-3, Part III,expense/deduction data including book-tax differ-ences has been changed to agree with the effect ofthose expense/deduction items and book-tax differ-ences on net income reported on Part II, line 30. If aPart III expense/deduction item or book-tax differ-ence reduces Part II, line 30 net income, it is shownas a negative amount in our report.17

D. Data SourceA weighted statistical sample of tax return data is

electronically encoded annually by SOI for use bythe Office of Tax Analysis (OTA) and the JointCommittee on Taxation.18 The Office of Planning,Analysis, Inventory, and Research (PAIR) within theLarge Business and International Division also re-ceives a copy of the file.19 The SOI corporate fileincludes Schedule M-1 data and, beginning with the2004 file, Schedule M-3 data. Starting with 2010, theSOI corporate file reports if (1) the taxpayer indi-cates on Form 1120, Schedule K, that Schedule UTPis required; (2) if Schedule UTP, Part I, identifying aUTP is attached to the return with any data; and (3)the number of lines on Schedule UTP, Part I, with

15See supra note 14 (research credits and Schedule M-3).16We calculate total pretax book income and total pretax

temporary and permanent book-tax differences by adding backfederal income tax expense and differences reported on Sched-ule M-3, Part III, lines 1 and 2, columns (a), (b), and (c), to bookincome and differences reported on Schedule M-3, Part II, line30, columns (a), (b), and (c), column by column. Total book-taxdifference is the sum of total temporary and permanent book-tax differences.

17Schedule M-3 instructions require that column (a) bookexpense and column (d) tax deduction amounts that reduce netbook income and reduce net tax income be shown on Part III aspositive amounts. However, some taxpayers fail to follow theinstructions. For a discussion of the problem and how we dealwith it, see Boynton, DeFilippes, and Legel (2006b and 2008);and Boynton, DeFilippes, Legel, and Reum (2011).

18The SOI corporate file is a statistical sample. The record fora smaller tax return (usually measured by total assets) may beweighted to represent more than one tax return. Generally taxreturns for corporations with $50 million or more in assets havea weight of one — that is, the record represents only itself. Therecord for a smaller tax return generally has a weight greaterthan one (for example five), that is, the record represents severalsimilar tax returns (for example, five tax returns). The SOIcorporate data file for year t includes all tax years endingbetween July of calendar year t and June of calendar year t+1.

19Under a formal memorandum of understanding betweenSOI and LB&I, use of the file data by either division is limited toresearch studies. SOI file data is not used for IRS audit casebuilding.



(C) T

ax Analysts 2014. A




any data on the line.20 The 2011 SOI corporate filewas issued to OTA, the JCT, and LB&I in October2013.21

Beginning May 2011, researchers using SOI datamust report tax data as an aggregate for a minimumof five taxpayers to protect taxpayer confidential-ity.22 For statistical reasons, SOI prefers that re-ported aggregate data are for 10 or more taxpayerswhen possible.23

E. Limits of Schedule M-3 Data

With the exception of Schedule M-3, Part I,amounts reported on the Form 1120 tax return andSchedule M-3, Parts II and III:

• are limited to the tax information and pretaxbook income information of the includablecorporations in the tax consolidated return;and

• do not include the tax information or pretaxbook income information of the nonincludablecorporations and partnerships (both foreignand domestic) that are included in the world-wide consolidated after-tax income reportedon Schedule M-3, Part I, line 4 (the worldwidebook income reported in the financial state-ments for consolidated book purposes).

The after-tax income of the nonincludable corpo-rations and partnerships are removed in gross after-tax amounts on Schedule M-3, Part I, lines 5 and 6,as one step in determining the book income of theincludable corporations reported on Schedule M-3,Part I, line 11.

Form 1120 tax return and Schedule M-3 data donot yield generalizations about the financial state-ment pretax consolidated worldwide income.Amounts reported on the Form 1120 and ScheduleM-3 do not provide the data needed to calculate thepretax worldwide effective tax rate for the entitiesincluded in the worldwide financial statements.

F. Reconciling Counts of Schedule UTPTable 1A of this report shows a total of 2,074

Form 1120 2011 Schedule UTP filers compared with2,190 reported by the PAIR LB&I UTP registry forthe 2011 form year. The difference is a result of (1)including different corporate income tax returnforms (PAIR counts include Form 1120-F, as well asForm 1120 filed by parents of insurance companies,and this report includes neither); (2) using differenttax year beginning months and ending months for2011 (July 2011 to June 2012 for SOI data versusDecember 2011 to November 2012 for PAIR); (3)using different standards for whether ScheduleUTP is filed (SOI reports the indication on Form1120, Schedule K, that Schedule UTP is required;SOI also counts Schedule UTP as present if anySchedule UTP, Part I ‘‘current year’’ line has anydata; and PAIR requires both Schedule UTP, Parts I‘‘current year’’ or II ‘‘prior year’’ and also Part III‘‘concise descriptions’’);24 and (4) different mini-mum asset recognition thresholds (PAIR includes

20The regular 2010 and 2011 SOI corporate files do nottabulate what is reported on Schedule UTP, Part I, and do notreport if an attached Schedule UTP, Part I, contains relevantdata. A special SOI supplement to each of the regular 2010 and2011 SOI corporate files tabulates the limited information re-ported on Schedule UTP, Part I, lines 1 through 10, for current-year UTPs such as code sections cited, temporary andpermanent effect, whether the position is major, and relativerank of the position. Part II concerning prior-year UTPs, andPart III regarding the concise descriptions for the positionslisted in Parts I and II, are not tabulated by SOI.

21The final SOI corporate file may contain placeholder re-cords representing returns that are unavailable for some reasonwhen the SOI file is issued but are desired by SOI for statisticalpurposes. Placeholder data are commonly the edited return datafrom the prior tax year but may also be current-year data fromthe IRS Business Master File (limited return data tabulated bythe IRS when the return is first received and processed) or datafrom the IRS Employee User Portal. Placeholder returns are notincluded in the Schedule M-3 ‘‘First Look’’ data files.

22Before May 2011, the minimum aggregation requirementfor SOI and for other government agencies was data aggrega-tion for three or more taxpayers or individuals. SOI has in-creased the required minimum for the use of SOI data to five ormore. The change for SOI data applies to tax year 2008 and tonew studies of data from earlier tax years. A data count of zerois permitted. Tests must be performed to ensure that data cannotbe generated by subtraction that would violate the minimumaggregation requirement. For a discussion of the older require-ment of three or more taxpayers or individuals for aggregatedata, see Office of Management and Budget working paper 22(2005); and IRS Publication 1075 (rev. 2007).

23Our tax return table values may not add and may differfrom official 2010 and 2011 SOI values because of rounding. SOIpublications do not include Schedules M-1 or M-3 data. Beforethe publication of Boynton, DeFilippes, and Legel (2005 and2006a), only Plesko (2002) (for 1996-1998) and Plesko-Shumofsky (2005) (for 1995-2001) presented public ScheduleM-1 data for the SOI corporate file population. The year-by-yearreconciliations of the subset of corporations meeting our mini-mum data and reconciliation tests for this 2010 and 2011Schedule M-3 study with the full 2010 and 2011 SOI corporatefiles are presented in Distribution Table D3 of the full ScheduleM-3 ‘‘First Look’’ data set for each year, 2010-2011, available onrequest. Our minimum data and reconciliation tests require thatPart I, line 11 and Part II, line 30, column (a) agree and that PartIII, line 38 and Part II, line 27 agree within 1 percent of themaximum absolute value of the amounts on Part II, line 30.

24The regular 2010 and 2011 SOI corporate files do nottabulate what is reported on Schedule UTP, Part I, and do notreport if an attached Schedule UTP, Part I, contains relevantdata. A special SOI supplement to each of the regular 2010 and2011 SOI corporate files tabulates the limited information re-ported on Schedule UTP, Part I, lines 1 through 10, for current-year UTPs such as code sections cited, temporary andpermanent effect, whether the position is major, and relativerank of the position. Part II relating to prior-year UTPs, and Part


(Footnote continued on next page.)


(C) T

ax Analysts 2014. A




voluntary filing by a corporation with assets below$100 million, and this report does not).

In particular: (1) 2011 SOI Schedule UTP data isfor Form 1120 tax returns with year ends of July2011 through June 2012; (2) we recognize a corpo-ration as a Schedule UTP filer if SOI recognizes theindication on Form 1120, Schedule K, that ScheduleUTP is required and/or SOI recognizes the presenceof a Schedule UTP, Part I, with any data on any line;(3) we exclude Form 1120 returns if SOI indicatesthat it is the parent of an insurance company andshould be classified as either 1120-L or 1120-PCunder the SOI test that 50 percent or more of thetotal receipts are from life insurance or propertyand casualty insurance; and (4) we exclude volun-tary 2011 Schedule UTP filed by corporations withtotal Schedule L assets of less than $100 million.

III. 2011 Worldwide Income to Tax Less Credits

A. By Asset Size, FS Type, and UTP StatusTables 1A and 1B present 2011 Schedule M-3, Part

I, data and other tax return data for all corporationsmeeting our study requirements filing the Form1120 and for three financial statement types (SECForm 10K/public, audited, and unaudited).25

Figures 1A through 1C highlight the relativemagnitude of several 2011 Schedule M-3 and Form1120 tax return income and adjustment amountsinvolved in moving from worldwide consolidatedfinancial statement income to tax less credits. Datais presented for three financial statement types: SECForm 10K/public, audited, and unaudited.26

In Figure 1A, for 2011, total worldwide consoli-dated financial statement income (reported onSchedule M-3, Part I, line 4) is $867,248 million forSEC Form 10K/public, $63,688 million for audited,and -$110,295 million for unaudited.

Next shown in Figure 1A is the adjustment toremove nonincludable foreign net income (reportedon Schedule M-3, Part I, line 5). The 2011 adjust-ment is -$748,596 million for SEC Form 10K/public,-$22,616 million for audited, and -$5,223 million forunaudited.27

Data for the following 2011 Schedule M-3, Part I,adjustments are not shown in Figure 1A and are notincluded in tables 1A and 1B28:

• the adjustment to remove nonincludable U.S.net income (reported on Schedule M-3, Part I,line 6);29

• the adjustment to include the net income ofother includable entities (reported on ScheduleM-3, Part I, line 7);30

III relating to the concise descriptions for the positions listed inParts I and II, are not tabulated by SOI.

25Some companies with assets of less than $10 millionvoluntarily filed Schedule M-3. We do not analyze that data.Our minimum reconciliation tests require Schedule M-3 dataagreement within tolerances of 1 percent of the maximum

absolute value of the amounts on Part II, line 30 for incomebetween Part I, line 11 and Part II, line 30 column (a) and forexpenses/deductions between Part III, line 38 and the carryoverline Part II, line 27. The year-by-year reconciliations of thesubset of corporations meeting our minimum data and recon-ciliation tests for this 2010-2011 Schedule M-3 study with the full2010-2011 SOI corporate files are presented in Distribution TableD3 of the full Schedule M-3 ‘‘First Look’’ data set for each year,2010-2011, available on request.

26See supra note 6, regarding the definitions of SEC Form10K/public, audited, and unaudited.

27The adjustment to remove positive nonincludable foreignnet income from worldwide financial statement income isshown as a negative amount on Schedule M-3, Part I in thecalculation of the book income of includable corporations. Theincome must be removed from worldwide financial statementincome in the calculation of the book income of includablecorporations because foreign subsidiaries owned more than 50percent, and some foreign partnerships are includable in world-wide consolidated financial statements, but only U.S. corpora-tions owned more than 80 percent are includable in the U.S. taxconsolidated group tax return.

28Data for 2006-2010 for all of the items are reported in tables1A through 1D of Boynton, DeFilippes, Legel, and Reum (2014).

29The adjustment to remove positive nonincludable U.S. netincome from worldwide financial statement income would beshown as a negative amount. U.S. subsidiaries owned morethan 50 percent and some U.S. partnerships are includable inworldwide consolidated financial statements, but only U.S.corporations owned 80 percent or more are includable in theU.S. tax consolidated group tax return.

30Other includable entities are U.S. subsidiaries owned 80percent or more and some disregarded entities (if owned by any

For 2011UTP registry for Dec. 2011-Nov. 2012 2,190Remove Form 1120-F -22Subtotal Form 1120, 1120-L, 1120-PC forDec. 2011-Nov. 2012

2,168

Remove Form 1120 for July 2012-Nov. 2012 -217Subtotal Form 1120, Form 1120-L, Form1120-PC for Dec. 2011-June 2012

1,951

Add Form 1120 for July 2011-Nov. 2011 +245Subtotal Form 1120, Form 1120-L,Form 1120-PC for July 2011-June 2012

2,196

Add Form 1120 identified by SOI UTP flagNOT in registry

+75

Form 1120+Form 1120-L+Form 1120-PC UTPidentified by SOI UTP flag for July 2011-July2012

2,271

Remove deemed Form 1120-L and Form1120-PC identified by SOI

-111

Form 1120 UTP identified by SOI UTP flag forJuly 2011-June 2012

2,160

Remove Form 1120 for July 2011-June 2012with assets below $100 million

-86

Total Form 1120 for July 2011-June 2012identified by SOI UTP flag with assets of $100million or more

2,074


(Footnote continued in next column.) (Footnote continued on next page.)


(C) T

ax Analysts 2014. A




• the adjustment to financial statement consoli-dation eliminations (reported on Schedule M-3,Part I, line 8) because of the removal of the netincome of foreign and U.S. nonincludable cor-porations and partnerships and the inclusionof the net income of other includable entities;31

• the adjustment to income because of differ-ences in financial statement year and tax year(reported on Schedule M-3, Part I, line 9);

• other adjustments (reported on Schedule M-3,Part I, line 10) required to determine the netincome of includable corporations (book in-come); and32

• the net income of includable corporations(book income) (reported on Schedule M-3, PartI, line 11).33

Shown last in Figure 1A is pretax book income.Pretax book income is $878,771 million for SECForm 10K/public, $92,621 million for audited, and-$92,114 million for unaudited.34

The first item in Figure 1B is pretax book income,repeating the last item in Figure 1A.

Next shown in Figure 1B is the adjustment for nettemporary book-tax difference followed by the ad-justment for net permanent book-tax difference. Nettotal book-tax difference is the sum of net tempo-rary book-tax difference and net permanent book-tax difference. A negative book-tax differencereduces tax net income compared with pretax book

of the includable corporations) for some reason not included inthe worldwide consolidated financial statements and thereforenot included on Schedule M-3, Part I, line 4.

31Those adjustments include the restoration of specific divi-dends, minority interests, and equity method income eliminatedin the consolidation for worldwide consolidated financial state-ments income.

32These adjustments include adjustments required betweenGAAP and statutory accounting when subsidiaries are insur-ance companies.

33Book income on Schedule M-3, Part I, line 11 is the bookanchor for the Schedule M-3 book-to-tax reconciliation in PartsII and III. Tax net income on Form 1120, page 1, line 28 is the taxanchor.

34For our analysis, consistent with the book-tax differenceliterature since Talisman (2000), we adjust book income topretax book income by reversing the recognition of federalincome tax expense (reported on Schedule M-3, Part III, lines 1and 2) and calculate book-tax differences as pretax differences.The adjustment of book income to pretax book income permitsa consistent comparison with tax return income. See our discus-sion of pretax income, book-tax differences, and signs in SectionII.C.

Figure 1A. 2011 U.S. Corp. Schedule M-3: Worldwide Income to Pretax Book Income

-$800,000

-$600,000

-$400,000

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Worldwide Income Nonincludable Foreign Income Pretax Book Income

Doll

ars

inM

illi

on

s

SEC Form 10K/Public Audited Unaudited



(C) T

ax Analysts 2014. A




income. A positive book-tax difference increases taxnet income compared with pretax book income.

The net temporary book-tax difference is-$202,588 million for SEC Form 10K/public,-$54,477 million for audited, and $106,629 millionfor unaudited. The net permanent book-tax differ-ence is -$5,315 million for SEC Form 10K/public,$9,707 million for audited, and $32,416 million forunaudited.

Not shown are the adjustments to Form 1120,page 1, line 4 dividend income and line 28 tax netincome made by SOI to remove intercompany divi-dends and the adjustment to correct other Form1120, page 1 reporting errors affecting line 28 tax netincome.35

Tax net income is the last item in Figure 1B andthe first item in Figure 1C. It is $637,691 million forSEC Form 10K/public, $45,882 million for audited,and $32,300 million for unaudited.

The next item shown in Figure 1C is total positivetax net income — that is, the total tax net income ofcorporations not reporting a loss on Form 1120,page 1, line 28. Loss corporations are not subject tothe regular corporate income tax. Positive tax netincome is $776,399 million for SEC Form 10K/public, $117,093 million for audited, and $114,147for unaudited.

Not shown in Figure 1C are36:• the Form 1120, page 1, line 29a, net operating

loss deduction using prior-year losses to re-duce current taxable income;37 and

• the adjustment for special deductions (divi-dend received deductions) on Form 1120, page1, line 29b (which reduces taxable income).

The next item shown is Form 1120, page 1, line 30taxable income. It is $700,876 million for SEC Form

35Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014). Some taxpayersimproperly include intercompany dividend (ICD) in tax netincome on Form 1120, page 1, line 28, the reconciliation targetfor Schedule M-3. The taxpayer then removes the same ICDamount as a 100 percent dividends received deduction on line29b so that it does not increase final income subject to tax on line30. On the SOI corporate file, SOI removes all ICD that itidentifies from Form 1120 data, including from page 1, line 28,regardless of whether the tax consolidation group contains aninsurance company subsidiary. See the discussion of the historyof ICD editing by SOI for 1990-2003 tax years in Boynton,DeFilippes, and Legel (2005 and 2006a); and Boynton, DeFil-ippes, Legel, and Reum (2011 and 2014). Note that changes on

the SOI corporate file do not change the amounts on the taxreturn and do not affect IRS audits (or lack of audits) forcorporate tax returns.

36Data for 2006-2010 for all the items are reported in tables1A through 1D of Boynton, DeFilippes, Legel, and Reum (2014).

37The adjustment for the NOL deduction would be shown asnegative because the adjustment reduces taxable income.

Figure 1B. 2011 U.S. Corp. Schedule M-3: Pretax Book Income to Tax Net IncomeD

oll

ars

inM

illi

on

s

-$800,000

-$600,000

-$400,000

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Pretax Book Income Pretax TemporaryDifference

Pretax PermanentDifference

Tax Net Income

SEC Form 10K/Public UnauditedAudited




(C) T

ax Analysts 2014. A




10K/public, $101,086 million for audited, and$92,590 million for unaudited.

Not shown is U.S. federal corporate income taxbefore credits.38

The next-to-last item shown is foreign tax creditsof -$104,882 million for all corporations, -$94,412million for SEC Form 10K/public, -$5,769 millionfor audited, and -$4,701 million for unaudited.39

Missing from Figure 1C are adjustments for thegeneral business credit and other credits reducingtaxes due.40

In Figure 1C, the last item is tax less credits of$137,090 million for SEC Form 10K/public, $27,160million for audited, and $26,506 million for unau-dited.

Figure 2 expands on the 2011 analysis of pretaxbook income to tax net income first shown in Figure1B and its focus on the corporations with $100million or more in assets — that is, the study

population potentially subject to filing ScheduleUTP for 2011. Figure 2 and tables 1A and 1B presentdata for Schedule UTP filers and nonfilers by finan-cial statement type.

Tables 1A and 1B present distribution table datafor 2011 for the 41,636 corporations in this studywith rows for asset size, financial statement type,return type, and the presence or absence of Sched-ule UTP.41 The columns are key tax return andSchedule M-3 variables. For Table 1A, they are:number of returns, Schedule L total assets, world-wide income, nonincludable foreign income, pretaxbook income, and tax net income. For Table 1B, theyare: pretax temporary book-tax difference; pretaxpermanent book-tax difference; positive tax netincome, taxable income, FTC, and U.S. corporateincome tax less credits.42

Tables 1A and 1B have two columns of percent-ages following each amount, giving first the per-centage of the total for all 41,636 corporationsrepresented by that row amount, and second the

38Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014).

39The adjustment for FTC is shown as negative because theadjustment reduces the U.S. income tax that is owed. FTCreduces U.S. income taxes, within limits, for income taxes paidto foreign countries on income earned outside the United Statesbut included in U.S. taxable income.

40Data for 2006-2010 are reported in tables 1A through 1D ofBoynton, DeFilippes, Legel, and Reum (2014).

41See Sections III.A, III.B, V.A to V.D, and tables 2A, 2B, 4, 5,and 6 for additional data on Schedule UTP filers and nonfilers.

42Nonincludable foreign income is shown as negative inTable 1A because it is the foreign income that must be removedfrom worldwide income in determining book income for theU.S. tax consolidated group. FTC is shown as negative in Table1B because it reduces the U.S. income tax that is owed.

Figure 1C. 2011 U.S. Corp. Schedule M-3: Tax Net Income to Tax Less CreditsD

oll

ars

inM

illi

on

s

-$800,000

-$600,000

-$400,000

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Tax Net Income Positive TaxNet Income

Taxable Income FTC Tax Less Credits

SEC Form 10K/Public Audited Unaudited



(C) T

ax Analysts 2014. A




percentage of the total for the subgroup of rows inwhich the row is included, represented by that rowamount.

The data in tables 1A and 1B highlight therelative importance to the U.S. corporate tax systemof very large corporations, corporations that arepublicly held and file with the SEC, and so-calledmixed groups (tax consolidated groups with a non-insurance parent and one or more insurance sub-sidiaries). The study data for 2011 include 41,636corporations that file Schedule M-3, including12,307 corporations (30 percent) with total assets of$100 million or more that are potentially subject tofiling Schedule UTP.

The 2,751 corporations (7 percent) with $1 billionor more in assets report 92 percent of the assets, 95percent of the worldwide income, 97 percent of thenonincludable foreign income, 95 percent of pretaxbook income, 82 percent of the net negative (tax-income-reducing) temporary book-tax differences,70 percent of the net positive permanent book-taxdifferences, and 83 percent of the tax less credits forthe 41,636 corporations. The 4,488 corporations (11percent) with SEC Form 10K/public financial state-ments report 74 percent of the assets, 106 percent ofthe worldwide income, 96 percent of the non-includable foreign income, 100 percent of pretaxincome, 135 percent of the net negative temporary

book-tax differences, net negative permanent book-tax differences equal to -14 percent of the aggregatenet positive permanent book-tax differences, and 72percent of the tax less credits. The 420 corporations(1 percent) that are mixed groups report 46 percentof the assets, 32 percent of the worldwide income,55 percent of the nonincludable foreign income, 31percent of pretax book income, net positive tempo-rary book-tax differences equal to -30 percent of theaggregate net negative temporary book-tax differ-ences, net negative permanent book-tax differencesequal to -82 percent of the aggregate net positivepermanent book-tax differences, and 31 percent ofthe tax less credits.

In contrast with the above, the 24,012 corpora-tions (58 percent) with assets of $10 million or morebut less than $50 million report only 1 percent oftotal assets, an aggregate financial statement netloss representing less than 1 percent of worldwideincome, and 3 percent of tax less credits.43 The 5,317corporations (13 percent) with assets of $50 million

43Effective for tax years ending December 31, 2014, and later,corporations and partnerships with $10 million or more inassets but less than $50 million in assets and those partnershipswith less than $10 million in assets required to file Schedule M-3

Figure 2. 2011 U.S. Corp. Schedule M-3: Pretax Book Income to Tax Net Income: FS Type by UTP Status

Doll

ars

inM

illi

on

s

-$200,000

-$100,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Pretax BookIncome

Pretax TemporaryDifference

Pretax PermanentDifference

Tax Net Income

SEC Form 10K/Public With UTP

SEC Form 10K/Public Without UTP

Audited WithUTP

Audited WithoutUTP

UnauditedWith UTP

Unaudited WithoutUTP


(Footnote continued on next page.)


(C) T

ax Analysts 2014. A




or more but less than $100 million report only 1percent of total assets, an aggregate financial state-ment net profit representing less than 1 percent ofworldwide income, and 2 percent of tax less credits.Corporations with assets of $50 million or more butless than $100 million are potentially subject tofiling Schedule UTP starting in 2012. Corporationswith assets of $10 million or more but less than $50million are potentially subject to filing ScheduleUTP starting in 2014.

The 12,307 corporations (30 percent) with assetsof $100 million or more in 2011 are potentiallyrequired to file Schedule UTP. They report 98 per-cent of assets, approximately 100 percent of netaggregate worldwide income, 99 percent of thenonincludable foreign income, approximately 100percent of net aggregate pretax book income, 95percent of the net negative temporary book-taxdifferences, 90 percent of the net positive perma-nent book-tax differences, and 95 percent of tax lesscredits for the 41,636 corporations.

The 2,074 corporations (5 percent) with assets of$100 million or more that filed Schedule UTP report70 percent of assets, 94 percent of worldwide in-come, 90 percent of the nonincludable foreign in-come, 91 percent of pretax book income, 108 percentof the net negative (tax-income-reducing) tempo-rary book-tax differences, 12 percent of the netpositive (tax-income-increasing) permanent book-tax differences, and 66 percent of tax less credits forthe 41,636 corporations.

In contrast, the 10,233 corporations (25 percent)with assets of $100 million or more that did not fileSchedule UTP (were not required to file or failed tofile) report 28 percent of assets, 6 percent of world-wide income, 9 percent of nonincludable foreignincome, 9 percent of the pretax book income, netpositive temporary book-tax differences equal to -12percent of the net negative temporary book-taxdifferences, 77 percent of the net positive perma-nent book-tax differences, and 29 percent of tax lesscredits for the 41,636 corporations.

B. By Industry and UTP StatusTables 2A and 2B present distribution table data

for 2011, with rows for 19 major industries andSchedule UTP filing status for 12,307 corporationswith $100 million or more in assets.44 The columns

are key tax return and Schedule M-3 variables:number of returns, Schedule L total assets, world-wide income, nonincludable foreign income, pretaxbook income, pretax temporary book-tax difference,pretax permanent book-tax difference, and U.S.corporate income tax less credits.45 Subtotals arepresented for manufacturing, finance/holding, andother.46

Tables 2A and 2B have two columns of percent-ages following each row amount, giving first, thepercentage of the total for all 12,307 corporationsrepresented by that row amount, and second, thepercentage of the total for the industry withinwhich the row is included, represented by that rowamount.

The rate of filing Schedule UTP by the 12,307corporations with assets of $100 million or morediffers greatly by industry. In manufacturing, 908(34 percent) file Schedule UTP and 1,802 (66 per-cent) do not. In finance/holding, 189 (4 percent) fileand 4,678 (96 percent) do not. In other, 976 (21percent) file and 3,753 (79 percent) do not.

The 908 manufacturing corporations filingSchedule UTP report 18 percent of assets for the12,307 corporations with $100 million or more inassets, 54 percent of the worldwide income, 69percent of nonincludable foreign income, 44 percentof pretax book income, 28 percent of the net nega-tive temporary book-tax differences, 44 percent ofthe net positive permanent book-tax differences,and 28 percent of the tax less credits. In contrast, the1,802 manufacturing corporations that do not fileSchedule UTP report 9 percent of the worldwideincome of the 12,307 corporations, 6 percent of theforeign nonincludable income, and 13 percent of thenet negative permanent book-tax differences.

The 189 finance/holding corporations filingSchedule UTP report a disproportionate 41 percentof assets for the 12,307 corporations with assets of$100 million or more but only 12 percent of tax less

would be permitted to file Schedule M-3, Part I, and to fileSchedule M-1 in place of Schedule M-3, Parts II and III, if theyso choose.

44The industries listed in tables 2A-2B are listed in SOIpublications in the following industries, major codes, and sectorcodes: Petroleum Refineries: Ind. 324110; Pharmaceuticals: Ind.325410; Computers/Electronics: Major code 334; ElectricalEquipment: Major code 335; Transportation Equipment: Major

code 336; Fabricated Metal and Machinery: Major codes 332 and333; Food/Beverage Mfg: Major codes 311 and 312; OtherManufacturing: Major codes 313, 315, 316, 321, 322, 323, 325, 326,327, 331, 337, 339, and Ind. 325125; Non-Bank Holding Com-pany: Ind. 551112; Bank and Bank Holding Company: Ind.551111, and Major code 521; Securities/Commodities: Majorcode 523; Other Financial: Major codes 522, 524, 525, and Sectorcode 53; Trade: Sector code 41; (N) Information: Sector code 51;Utilities: Sector code 22; Transport/Warehousing: Sector code48; Mining: Sector code 21; Construction: Sector code 23; andService/Agriculture/Other: the remainder of the industries notlisted above.

45Nonincludable foreign income is shown as negative inTable 2A because it is the foreign income that must be removedfrom worldwide income in determining book income for theU.S. tax consolidated group.

46See Sections III.A, III.B, V.A to V.D, and tables 1A, 1B, 4, 5,and 6 for additional data on Schedule UTP filers and nonfilers.




(C) T

ax Analysts 2014. A




credits, 10 percent of worldwide income, 5 percentof nonincludable foreign income, 16 percent ofpretax book income, 6 percent of net negative(tax-income-reducing) temporary book-tax differ-ences, and -87 percent of net negative permanentbook-tax differences.

The 976 other non-manufacturing, nonfinancialcorporations filing Schedule UTP report 8 percent ofthe assets for the 12,307 corporations, 13 percent ofworldwide income, 29 percent of nonincludableforeign income, 30 percent of pretax book income,30 percent of tax less credits, 78 percent of netnegative temporary book-tax differences, and netpositive (tax-income-increasing) permanent book-tax differences equal to 56 percent of the net posi-tive permanent book-tax differences of the 12,307corporations.

IV. 2010 and 2011 Adjusted Mini M-3

A. Mini M-3: Specified Versus Other LinesThe ‘‘other with difference’’ lines on Schedule

M-3 with book-tax differences are Part II, line 25and Part III, line 37. The ‘‘other with no difference’’line is Part II, line 28. In two prior studies in thisseries, we noted both the large dollar magnitude ofthe book income, tax income, and book-tax differ-ence amounts reported on the ‘‘other with differ-ence’’ lines and the documentation problems foundon the lines.47

We use a Mini M-3 format to compare the aggre-gate amounts reported on the Schedule M-3, Parts IIand III, ‘‘other with difference’’ or ‘‘other with nodifference’’ lines with the aggregate amounts re-ported on the Schedule M-3, Parts II and III, ‘‘speci-fied’’ lines — that is, the lines with specificcaptions.48

A Schedule M-3 COGS adjustment discussed inthe next section is used to remove the cost ofsecurities, commodity contracts, and other financialproducts reported in COGS by some corporationsand to reconcile the COGS amount reported by theSOI corporate data file. The Mini M-3 format also

makes related special adjustments to ‘‘other incomewith difference’’ and ‘‘other items with no differ-ence’’ lines and separates the ‘‘adjusted other itemswith no difference’’ line into ‘‘other income with nodifference’’ and ‘‘other expense/deduction with nodifference’’ lines.

After making the data adjustments, the Mini M-3format has 10 categories of ‘‘specified’’ lines, ‘‘otherwith difference’’ or ‘‘other with no difference’’ lines,and subtotals or totals49:

• other income with no difference (Part II, line 28adjusted) (gross receipts);

• COGS (Part II, line 17 adjusted);• adjusted gross profit;• specified income (Part II, lines 1-16, 18-24, and

29a-29c);• other income with difference (Part II, line 25

adjusted);• adjusted total income;• specified expense/deduction (Part III, lines

3-36);50

• other expense/deduction with difference (PartIII, line 37);

• other expense/deduction with no difference(an adjustment to Part II, line 28); and

• pretax book income.We use the adjusted total book income amount as

a common-size scaling factor and compare percent-ages of adjusted total book income to remove orminimize the impact of differences in the size ofcorporations from our analysis. Also, in comparingthe Schedule M-3 characteristics of Schedule UTPfilers and nonfilers for the three financial statementtypes, total pretax income book-tax difference isexpressed as a percentage of total pretax bookincome.

B. COGS and Other AdjustmentsWe make a Schedule M-3 COGS adjustment for

the Mini M-3. The adjustment reconciles the Sched-ule M-3 COGS tax income amount with Form 1120,page 1, line 2 COGS reported by SOI for thecorporations in our study. SOI removes the cost ofsecurities, commodity contracts, and other financialproducts reported in Form 1120, page 1, line 247For discussions of the ‘‘other with difference’’ documenta-

tion by large taxpayers in 2005 and 2007, see Boynton, DeFil-ippes, and Legel (2008); and Boynton, DeFilippes, Legel, andReum (2011).

48Amounts reported on the ‘‘other with difference’’ linesrequire attached documentation. The documentation must sepa-rately state and adequately disclose the book-tax difference forthe line. The ‘‘other items with no difference’’ line has nodocumentation. Reporting on the ‘‘other with difference’’ linesis similar to but more detailed than reporting on Schedule M-1.Both allow descriptions determined by the taxpayer. ScheduleM-1 requires only a description and a book-tax difference.Schedule M-3 requires a description, a book income amount, atemporary book-tax difference amount, a permanent book-taxdifference amount, and a tax income amount.

49In tables 4, 5, and 6, we omit the data for ‘‘adjusted otherincome with no difference’’ and adjusted COGS and start thetable data with adjusted gross profit to save space. All book-taxdifferences in adjusted gross profit are from adjusted COGS.The adjustments we make to COGS are made equally to theunadjusted book amount and tax amount and have no effect onthe book-tax differences.

50We exclude federal income tax expense reported on Sched-ule M-3, Part III, lines 1 and 2 from our pretax analysis. See ourdiscussion of pretax income and book-tax differences in SectionII.C.



(C) T

ax Analysts 2014. A




COGS.51 We make the equal adjustments to Part II,line 17 COGS book income and tax income, with theresult that COGS book-tax differences are un-changed. SOI also makes adjustments to Form 1120,page 1, line 1 gross receipts to match the amountsSOI removes from COGS. We match our COGSadjustments with adjustments to other income withdifference and to other items with no difference. Wealso separate the adjusted other items with nodifference into other income with no difference andother expense/deduction with no difference.52

SOI has adjusted Form 1120, page 1, line 1 grossreceipts and line 2 COGS, Schedule A COGS, andSchedule L inventory amounts since the 1980s toremove the cost of securities and commoditiestransactions. SOI-adjusted COGS, gross receipts,and inventory amounts are used by the Bureau ofEconomic Analysis for national income accounts. Atthe OTA’s request, SOI has not adjusted ScheduleM-3 data since its introduction in 2004.

We wish to develop a consistent Schedule M-3measure of total book income before expenses toscale or common-size book income and tax incomecomponents and book expense and tax deductioncomponents for different size corporations. Adopt-ing the SOI adjustments to COGS and gross receiptsfacilitates the development of a consistent measureof total income applicable to different size corpora-tions.53

As shown in Table 3, we adjust 2011 ScheduleM-3 COGS by approximately $41 trillion to agreewith the SOI Form 1120, page 1, line 2 COGS. Indoing so, we need to determine where on ScheduleM-3 to make the matching gross receipts adjust-ment. Using 2010 data, we developed a rule toallocate the matching gross receipts reduction be-tween Schedule M-3, Part II, line 25 other incomewith difference and line 28 other items withoutdifference. We verified our rule on the 2010 datausing the top 25 returns which, for 2010, accountedfor 99 percent of the aggregate adjustment of ap-

proximately $32 trillion.54 Also, for 2011, we com-pare the Form 1120, page 1, line 27 total deductionamount with the total Part III deduction amountcarried over to Part II as reported on Part II, line 27,column (d) to determine the ‘‘total deductions withno difference’’ amount currently included in Part II,line 28 other items with no difference. The amountsof the four adjustments are shown in Table 3.55

Of the 41,636 Schedule M-3 returns in our studyfor 2011, 25,078 reported COGS on Part II, line 17.The total COGS adjustment for 2011 is $41,308,853million. The details of the adjustment are shown inTable 3 and Figure 3. The adjustments do not affectpretax net income and do not affect book-tax differ-ences. Book-tax differences are unaffected by theCOGS and other adjustments described in thissection of the report because equal adjustments aremade to book income and tax income amounts.

Table 3 shows the aggregate amounts of the threeCOGS adjustments and the one ‘‘other expense/deduction with no difference’’ adjustment for allcorporations in our study and by financial state-ment type. The adjustments are largely to SEC Form10K/public. The adjustments do not affect pretaxnet income or book-tax differences.

We use the adjusted book income and tax incomeamounts in our Mini M-3 analysis in Sections V.Bthrough V.D and scale by adjusted total incomebook amount the sum of the ‘‘adjusted other incomewith no difference,’’ ‘‘adjusted COGS,’’ ‘‘specifiedincome,’’ and ‘‘adjusted other income with differ-ence’’ amounts.

51Note that changes on the SOI corporate file do not changethe amounts on the tax return and do not affect IRS audits (orlack of audits) for corporate tax returns.

52We have introduced adjustment lines into our 2010 Sched-ule M-3 ‘‘First Look’’ form tables to show the frequency ofadjustment and the amounts needed to reconcile Schedule M-3,Part II, line 17 COGS to the SOI amount reported for Form 1120,page 1, line 2.

53Aggregate unadjusted book income and tax income re-ported on Schedule M-3, Part II, line 26 for all corporations areboth negative because the large absolute amount of COGS for allcorporations on Part II, line 17 exceeds the income reported onthe ‘‘specified income’’ lines and the ‘‘other income with differ-ence’’ lines combined. A majority of gross receipts are reportedon Part II, line 28, ‘‘other items with no difference.’’

54See Boynton, DeFilippes, Legel, and Reum (2014).55Our allocation rule:ADJ COGS1 and ADJ COGS2: If the absolute value ofP2L17 column D COGS is greater than Form 1120, page 1,line 2 COGS, the excess difference is the COGS adjust-ment and the matching gross receipts adjustment. Theadjustments reduce the absolute magnitude of P2L17,P2L25, and P2L28.ADJ COGS1: The gross receipts adjustment is applied toP2L25 other income with difference if P2L25D otherincome with difference is greater than P2L28D otherincome without difference AND P2L25D is greater than80 percent of the gross receipts adjustmentELSE useADJ COGS2: The gross receipts adjustment goes toP2L28 other income without difference.ADJ COGS3: If the absolute value of P2L17 column (d)COGS is less than 1120, page 1, line 2 COGS, the adjust-ment is an increase to P2L17 and P2L28 in absolutemagnitude.ADJ EXPDED: We estimate expenses/deduction withoutdifferences as the amount if any by which Form 1120,page 1, line 27 total deductions exceed the absolute valueof P2L27 column (d). We show it as an additionalexpense/deduction line and as an increase to P2L28. Theadjusted P2L28 amount changes from ‘‘other items with-out difference’’ to ‘‘other income without difference.’’



(C) T

ax Analysts 2014. A




V. Analysis of Mini M-3

A. Mini M-3 by FS Type by UTP Status

Sections V.B through V.D, tables 4, 5, and 6, andfigures 4, 5, and 6 present adjusted 2010 and 2011data for adjusted gross profit, specified income,adjusted income with difference, adjusted total in-come, specified expense/deduction, other expense/deduction with difference, other expense deductionwith no difference, and pretax book income forbook income, tax income, and temporary and per-manent book-tax difference amounts by financialstatement type (SEC Form 10K/public, audited,and unaudited) further partitioned by the presenceor absence of Schedule UTP.56 The Mini M-3 formatsin tables 4 through 6 do not show the ‘‘adjustedincome with no difference’’ line and the ‘‘adjustedCOGS’’ line but do show the ‘‘adjusted gross profit’’

line resulting from the two omitted lines.57 Allbook-tax differences reported on the ‘‘adjustedgross profit’’ line are from the ‘‘adjusted COGS’’ lineand, when relevant, are discussed as COGS book-tax differences.

The analysis of Schedule UTP filing status islimited to corporations in the study reporting totalassets of $100 million or more, the total assetthreshold in 2011 for Schedule UTP to potentiallyapply. Schedule UTP asks for relevant code sectionsand a concise description of issues, without dollaramounts, for the UTPs that affect the financialstatement-reported U.S. federal income tax liabili-ties of specified corporations that issue or are in-cluded in audited financial statements.58

The first five data columns in tables 4 through 6are book income, temporary difference, permanentdifference, tax income, and total difference in mil-lions of dollars. The next five columns express thefirst five columns as percentages of the book

56The SAS computer code we use for indicating the presenceor absence of UTP filing is as follows:

/*Flag any indication of UTP */HAS_UTP = 0;IF (SCHUTP_REQ_IND = 1) OR (SCHUTP_CD = 1) OR(NUM_SCHUTP > 0) THEN HAS_UTP=1;HAS_UTP3 = HAS_UTP;IF TOT_ASSTS < 100000 THEN HAS_UTP3=0; /* if assetsunder 100m */.We are using UTP3, which does not recognize volunteer

filings by corporations with total assets of less than $100 million.

57The data for the omitted ‘‘adjusted income with no differ-ence’’ and ‘‘adjusted COGS’’ lines in tables 4, 5, and 6 areavailable on request.

58See Section II.B for a discussion of Schedule UTP require-ments. See Section II.F for a reconciliation of the 2011 ScheduleUTP count we present with the PAIR LB&I UTP Registry count.See Sections III.A, III.B, V.B to V.D, and tables 1A, 1B, 2A, and 2Bfor additional data on Schedule UTP filers.

Figure 3. 2011 Unadjusted and Adjusted Book Income Amounts

Doll

ars

inM

illi

on

s

-$60 million

-$50 million

-$40 million

-$30 million

-$20 million

-$10 million

$0

$10 million

$20 million

$30 million

$40 million

Adj

uste

dO

ther

Inco

me

No

Dif

fere

nce

Adj

uste

dC

OG

S

Adj

uste

d

Gro

ssPro

fit

Spe

cifi

edIn

com

eA

djus

ted

Oth

er

Inco

me

With

Dif

fere

nce

Spe

cifi

edE

xpen

ses/

Ded

uction

s

Adj

uste

d

Tot

alIn

com

e

Oth

erE

xpen

ses/

Ded

uction

sW

ith

Dif

fere

nce

Adj

uste

dO

ther

Exp

ense

s/

Ded

uction

sN

oD

iffe

renc

ePre

tax

Net

Inco

me

Unadjusted Book Adjusted Book



(C) T

ax Analysts 2014. A




amount of adjusted total income — our primaryscaling factor to correct for the difference in size ofthe three financial statement types.59 The final threecolumns express temporary difference, permanentdifference, and total difference as percentages ofpretax book income.

Tables 4 through 6 present the 2010-2011 MiniM-3 data for Schedule UTP filers and nonfilers forthe three financial statement types: Table 4 for SECForm 10K/public, Table 5 for audited, and Table 6for unaudited.

Figures 4, 5, and 6 compare the 2010 and 2011temporary book-tax differences, permanent book-tax differences, and total book-tax differences as apercentage of pretax book income for Schedule UTP

filers and nonfilers: Figure 4 for SEC Form 10K/public, Figure 5 for audited, and Figure 6 forunaudited filers.

B. SEC Form 10K/Public Mini M-3

1. 2010. See the first panel of Table 4. Schedule UTPfilers report, in aggregate, a relatively large negativetemporary component for specified income book-tax difference (-2.99 percent) and a relatively largenegative permanent component for other incomewith difference book-tax difference (-1.52 percent),contributing to a relatively large total pretax incomenegative book-tax difference (-4.97 percent) reduc-ing tax income from pretax income book (pretaxincome book 17.88 percent to tax income 12.91percent), a reduction of 27.8 percent.

See the second panel of Table 4. Schedule UTPnonfilers report, in aggregate, a relatively largepositive temporary component for COGS (1.9 per-cent), a relatively large negative permanent compo-nent for specified-income book-tax difference (-3.46percent), a relatively large negative temporary com-ponent for other income with difference book-taxdifference (-2.89 percent), and a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-1.94 per-cent), contributing to a relatively large total pretax

59As discussed in Sections IV.A and IV.B, we wish to developa consistent Schedule M-3 measure of total book income beforeexpenses to scale or common size book income and tax incomecomponents and book expense and tax deduction componentsfor different size corporations. Adopting the SOI adjustments toCOGS and gross receipts facilitates development of a consistentmeasure of total income applicable to different size corpora-tions.

Figure 4. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for SEC Form 10K/Public FS by UTP Filing Status

Per

cen

tage

of

Pre

tax

Book

Inco

me

-50%

-40%

-30%

-20%

-10%

0%

10%

Temporary BTD Permanent BTD Total BTD

SEC UTP-10 SEC Without UTP-10 SEC UTP-11 SEC Without UTP-11



(C) T

ax Analysts 2014. A




income negative book-tax difference (-6.23 percent)reducing tax income from pretax income book(pretax income book 16.75 percent to tax income10.52 percent), a reduction of 37.2 percent.

See the last row of the first and second panels ofTable 4, and see Figure 4. Although the pretaxincome negative book-tax difference of the UTPfilers is larger in dollar magnitude than the pretaxincome negative book-tax difference of the nonfilers(UTP filers, -$190,970 million versus UTP nonfilers,-$84,546 million), the nonfiler negative book-taxdifference as a percentage of pretax income bookrepresents a greater tax income reduction (UTPfilers 27.8 percent versus UTP nonfilers 37.2 per-cent).2. 2011. See the third panel of Table 4. Schedule UTPfilers report, in aggregate, a relatively large negativetemporary component for specified income book-tax difference (-2.02 percent), contributing to arelatively large total pretax income negative book-tax difference (-3.64 percent) reducing tax incomefrom pretax income book (pretax income book 17.82percent to tax income 14.18 percent), a reduction of20.4 percent.

See the fourth panel of Table 4. Schedule UTPnonfilers report, in aggregate, a relatively largenegative temporary component for COGS (-1.54percent) and a relatively large negative temporarycomponent for specified expense/deduction book-tax difference (-3.74 percent), contributing to arelatively large total pretax income negative book-tax difference (-4.87 percent) reducing tax incomefrom pretax income book (pretax income book 12.04percent to tax income 7.17 percent), a reduction of40.5 percent.

See the last row of the third and fourth panels ofTable 4, and see Figure 4. Although the pretaxincome negative book-tax difference of the UTPfilers is larger in dollar magnitude than the pretaxincome negative book-tax difference of the nonfilers(UTP filers -$151,180 million versus UTP nonfilers-$58,142 million), the nonfiler negative book-taxdifference as a percentage of pretax income bookrepresents a greater tax income reduction (UTPfilers 20.4 percent versus UTP nonfilers 40.5 per-cent).3. Conclusions: SEC Form 10K/Public. The require-ments to file Schedule UTP in 2010 and 2011 iden-tify a minority group of corporations with SECForm 10K/public financial statements with $100million or more in assets that have both UTPs and,in aggregate, reduce tax income with book-taxdifferences reported on Schedule M-3 (a 27.8 per-cent reduction in pretax book income for 2010 and a20.4 percent reduction in 2011), but similar corpo-rations in financial statement type and asset size notrequired to file Schedule UTP (or failing to file)

reduce tax income with book-tax differences to arelatively greater extent (a 37.2 percent reduction inpretax income for 2010 and a 40.5 percent reductionin 2011). For 2010 and 2011, 31.7 percent and 36.4percent, respectively, of the SEC Form 10K/publiccorporations filed Schedule UTP, while 68.3 percentand 63.6 percent, respectively, did not file a Sched-ule UTP. The conclusion for corporations with SECForm 10K/public financial statements with $100million or more in assets is that filing Schedule UTPdoes not identify the same tax compliance risks asreporting Schedule M-3 tax-income-decreasingbook-tax differences. The further conclusion is thatSchedule UTP supplements, but does not replace,Schedule M-3 for transparency and return selectionfor the minority of large corporations with SECForm 10K/public financial statements that fileSchedule UTP.

C. Audited Mini M-31. 2010. See the first panel of Table 5. Schedule UTPfilers, in aggregate, report a relatively large positivetemporary component for COGS book-tax differ-ence (2.17 percent) reflected in the gross profitsubtotal line, both a relatively large positive tempo-rary component and a relatively large negativepermanent component for specified income book-tax difference (temporary 1.67 percent and perma-nent -1.95 percent), a relatively large negativetemporary component for other income with differ-ence book-tax difference (-2.72 percent), a relativelylarge positive permanent component for specifiedexpense/deduction book-tax difference (1.54 per-cent), and a relatively large positive temporarycomponent for other expense/deduction with dif-ference book-tax difference (3.51 percent), contrib-uting to a relatively large total pretax incomepositive book-tax difference (3.63 percent) increas-ing tax income from pretax income book (pretaxincome book 5.58 percent to tax income 9.21 per-cent), an increase of 65.1 percent.

See the second panel of Table 5. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-1.61 per-cent), contributing to a relatively large total pretaxincome negative book-tax difference (-2.08 percent)reducing tax income from pretax income book(pretax income book 6.98 percent to tax income 4.9percent), a reduction of 29.8 percent.

See the last row of the first and second panels ofTable 5 and see Figure 5. The pretax income positivebook-tax difference of the UTP filers is larger indollar magnitude than the pretax income negativebook-tax difference of the nonfilers (UTP filers,$14,406 million versus UTP nonfilers, -$12,621 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a tax



(C) T

ax Analysts 2014. A




income increase of 65.1 percent, while the nonfilernegative book-tax difference represents a tax in-come decrease of 29.8 percent.2. 2011. See the third panel of Table 5. Schedule UTPfilers, in aggregate, report a relatively large positivetemporary component for COGS book-tax differ-ence (2.12 percent) reflected in the gross profit line,both a relatively large positive temporary compo-nent and a relatively large negative permanentcomponent for specified income book-tax difference(temporary 1.57 percent and permanent -2.31 per-cent), a relatively large negative temporary compo-nent for other income with difference book-taxdifference (-2.35 percent), and both a relatively largenegative temporary component and a relativelylarge positive permanent component for specifiedexpense/deduction book-tax difference (temporary-5.95 percent and permanent 2.3 percent), contrib-uting to a relatively large total pretax income nega-tive book-tax difference (-5.03 percent) decreasingtax income from pretax income book (pretax incomebook 10.72 percent to tax income 5.7 percent), adecrease of 46.9 percent.

See the fourth panel of Table 5. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-2.35 per-

cent), contributing to a relatively large total pretaxincome negative book-tax difference (-3.67 percent)reducing tax income from pretax income book(pretax income book 7.73 percent to tax income 4.05percent), a reduction of 47.6 percent.

See the last row of the third and fourth panels ofTable 5 and see Figure 5. The pretax income nega-tive book-tax difference of the UTP filers is smallerin dollar magnitude than the pretax income nega-tive book-tax difference of the nonfilers (UTP filers-$20,909 million versus UTP nonfilers -$22,290 mil-lion). The filer negative book-tax difference as apercentage of pretax income book represents a taxincome decrease of 46.9 percent, while the nonfilernegative book-tax difference represents a slightlylarger tax income decrease of 47.6 percent.3. Conclusions: Audited. The requirements to fileSchedule UTP in 2010 identify a minority group ofcorporations with audited financial statements withtotal assets of $100 million or more that has UTPsand that, in aggregate, increases tax income withbook-tax differences reported on Schedule M-3.(This group of taxpayers had a 65.1 percent increaseto pretax book income.) For 2011, the requirementsto file Schedule UTP identify a minority group ofcorporations with audited financial statements withtotal assets of $100 million or more that has UTPs

Figure 5. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for Audited FS by UTP Filing Status

Per

cen

tage

of

Pre

tax

Book

Inco

me

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%


Audited UTP-10 Audited Without UTP-10 Audited UTP-11 Audited Without UTP-11



(C) T

ax Analysts 2014. A




and, in aggregate, reduces tax income with book-taxdifferences reported on Schedule M-3 (a 46.9 per-cent reduction in pretax book income). Similarcorporations in financial statement type and assetsize not required to file Schedule UTP (or failing tofile) reduce tax income with book-tax differences forboth 2010 and 2011, respectively, to a relativelygreater or same extent (a 29.8 percent reduction inpretax book income for 2010 and a 47.6 percentreduction in 2011). For 2010 and 2011, 9.4 percentand 9.9 percent, respectively, of the audited corpo-rations filed Schedule UTP, while 90.6 percent and90.1 percent, respectively, did not file a ScheduleUTP. The conclusion for corporations with auditedfinancial statements with $100 million or more inassets is that filing Schedule UTP does not identifythe same tax compliance risks as reporting ScheduleM-3 tax-income-decreasing book-tax differences.The further conclusion is that Schedule UTP supple-ments, but does not replace, Schedule M-3 fortransparency and return selection for the minorityof large corporations with audited financial state-ments that file Schedule UTP.

D. Unaudited Mini M-31. 2010. See the first panel of Table 6. Schedule UTPfilers, in aggregate, report both a relatively large

positive temporary component and a relativelylarge positive permanent component for specifiedincome book-tax difference (temporary 1.85 percentand permanent 3.66 percent) and a relatively largepositive permanent component for specifiedexpense/deduction book-tax difference (1.7 per-cent) contributing to a relatively large total pretaxincome positive book-tax difference (5.98 percent)increasing tax income from pretax income book(pretax income book 4.84 percent to tax income10.81 percent), an increase of 123.6 percent.

See the second panel of Table 6. Schedule UTPnonfilers, in aggregate, report a relatively largenegative permanent component for specified in-come book-tax difference (-3.74 percent) and a rela-tively large negative temporary component forspecified expense/deduction book-tax difference(-1.86 percent) contributing to a relatively large totalpretax income negative book-tax difference (-8.72percent) reducing tax income from pretax incomebook (pretax income book 13.53 percent to taxincome 4.81 percent), a reduction of 64.5 percent.

See the last row of the first and second panels ofTable 6 and see Figure 6. The pretax income positivebook-tax difference of the UTP filers is smaller indollar magnitude than the pretax income negative

Figure 6. 2010-2011 U.S. Corporation M-3: Book-Tax Difference asPercentage of Pretax Book for Unaudited FS by UTP Filing Status

Per

cen

tage

of

Pre

tax

Book

Inco

me

-100%

-50%

0%

50%

100%

150%


Unaudited UTP-10 Unaudited Without UTP-10 Unaudited UTP-11 Unaudited Without UTP-11



(C) T

ax Analysts 2014. A




book-tax difference of the nonfilers (UTP filers$17,939 million versus UTP nonfilers -$44,055 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a taxincome increase of 123.6 percent, while the nonfilernegative book-tax difference represents a tax in-come decrease of 64.5 percent.2. 2011. See the third panel of Table 6. Schedule UTPfilers, in aggregate, report a relatively large positivepermanent component for specified income book-tax difference (4.13 percent), a relatively large nega-tive temporary component for specified expense/deduction book-tax difference (-2.4 percent), and arelatively large positive permanent component forother expense/deduction with book-tax difference(1.58 percent) contributing to a relatively large totalpretax income positive book-tax difference (4.57percent) increasing tax income from pretax incomebook (pretax income book 5.63 percent to tax in-come 10.19 percent), an increase of 81.2 percent.

See the fourth panel of Table 6. Schedule UTPnonfilers, in aggregate, report a relatively largenegative temporary component for specifiedexpense/deduction book-tax difference (-2.87 per-cent) and a relatively large positive temporarycomponent for other expense/deduction withbook-tax difference (26.5 percent) contributing to arelatively large total pretax income positive book-tax difference (26.33 percent) increasing tax incomefrom pretax income book (pretax income book-23.09 percent to tax income 3.23 percent), an in-crease of 114 percent of the absolute value of theloss.

See the last row of the third and fourth panels ofTable 6 and see Figure 6. The pretax income positivebook-tax difference of the UTP filers is smaller indollar magnitude than the pretax income positivebook-tax difference of the nonfilers (UTP filers$14,618 million versus UTP nonfilers $127,298 mil-lion). The filer positive book-tax difference as apercentage of pretax income book represents a taxincome increase of 81.2 percent, while the nonfilerpositive book-tax difference represents a tax incomeincrease of 114 percent.3. Conclusions: Unaudited. The requirements tofile Schedule UTP in 2010 and 2011 identify aminority group of corporations with unauditedfinancial statements with total assets of $100 millionor more that has UTPs and, in aggregate, increasetax income with book-tax differences reported onSchedule M-3 (this group of taxpayers had anincrease in pretax book income of 123.6 percent for2010 and 81.2 percent for 2011). Similar corporationsin financial statement type and asset size not re-quired to file Schedule UTP (or failing to file) reducetax income with book-tax differences in 2010 to arelatively greater extent but not in 2011 (a reduction

of pretax income of 64.5 percent for 2010 and anincrease of 114 percent for 2011). For 2010 and 2011,8 percent and 8.8 percent, respectively, of the unau-dited corporations filed Schedule UTP, while 92percent and 91.2 percent, respectively, did not file aSchedule UTP. The conclusion for corporations withunaudited financial statements with $100 million ormore in assets is that filing Schedule UTP does notidentify the same tax compliance risks as reportingSchedule M-3 tax-income-decreasing book-tax dif-ferences. The further conclusion is that ScheduleUTP supplements, but does not replace, ScheduleM-3 for transparency and return selection for theminority of large corporations with unaudited fi-nancial statements that file Schedule UTP.

E. General ConclusionsThe study presents and compares 2010 and 2011

Schedule M-3 and Form 1120 tax return data pro-files for Schedule UTP filers and nonfilers with $100million or more in assets. It includes 12,044 corpo-rations in 2010 and 12,307 corporations in 2011. In2010 Schedule UTP filers decrease tax income usingSchedule M-3 book-tax differences less, as a per-centage of total pretax book income, than ScheduleUTP nonfilers for all financial statement types (SECForm 10K/public, audited, and unaudited). In 2011Schedule UTP filers decrease tax income usingbook-tax differences less than Schedule UTP nonfil-ers for SEC Form 10K/public financial statementsand decrease tax income no more than nonfilers foraudited financial statements. The authors concludethat filing Schedule UTP does not identify the sametax compliance risks as reporting Schedule M-3tax-income-decreasing book-tax differences. Theyalso conclude that Schedules UTP and M-3 arecomplementary and not duplicative for tax compli-ance risk analysis. Only a minority of large corpo-rations file Schedule UTP while all file ScheduleM-3.

VI. ReferencesBoynton, Charles, Portia DeFilippes, and Ellen Le-

gel, ‘‘Prelude to Schedule M-3: Schedule M-1Corporate Book-Tax Difference Data 1990-2003,’’Tax Notes, Dec. 19, 2005, p. 1579.

Boynton, DeFilippes, and Legel, ‘‘Distribution ofSchedule M-1 Corporate Book-Tax DifferenceData 1990-2003 for Three Large-Size and ThreeIndustry Groups,’’ Tax Notes, Apr. 10, 2006, p. 177[2006a].

Boynton, DeFilippes, and Legel, ‘‘A First Look at2004 Schedule M-3 Reporting by Large Corpora-tions,’’ Tax Notes, Sept. 11, 2006, p. 943 [2006b].

Boynton, DeFilippes, and Legel, ‘‘A First Look at2005 Schedule M-3 Corporate Reporting,’’ TaxNotes, Nov. 3, 2008, p. 563.



(C) T

ax Analysts 2014. A




Boynton, DeFilippes, Legel, and Todd Reum, ‘‘AFirst Look at 2007 Schedule M-3 Reporting byLarge Corporations,’’ Tax Notes, Aug. 15, 2011, p.689.

Boynton, DeFilippes, Legel, and Reum, ‘‘A FirstLook at 2010 Schedule M-3 Reporting and toSchedule UTP Filing Status,’’ Tax Notes, July 21,2014, p. 253.

Boynton and Barbara Livingston, ‘‘PartnershipsWith Reportable Entity Partners,’’ Tax Notes, Aug.30, 2010, p. 949.

Boynton and Lillian Mills, ‘‘The Evolving ScheduleM-3: A New Era of Corporate Show and Tell?’’ 57Nat’l Tax J. 757 (2004).

Boynton and William Wilson, ‘‘A Review of Sched-ule M-3, The Internal Revenue Service’s NewBook-Tax Reconciliation Tool,’’ 25 Petroleum Acct& Fin. Mgmt J. 1 (2006).

IRS Publication 1075, Tax Information Security Guide-lines for Federal, State, and Local Agencies andEntities (rev. 2007).

Mills, ‘‘Book-Tax Differences and Internal RevenueService Adjustments,’’ 36 J. Acct. Res. 343 (1998).

Mills and George Plesko, ‘‘Bridging the Gap: AProposal for More Informative Reconciling ofBook and Tax Income,’’ 56 Nat’l Tax J. 865 (2003).

Office of Management and Budget, ‘‘Report onStatistical Disclosure Limitation Mythology,’’working paper 22 (rev. 2005).

Plesko, ‘‘Reconciling Corporate Book and Tax NetIncome, Tax Years 1996-1998,’’ 21 SOI Bull. 1(2002).

Plesko and Nina L. Shumofsky, ‘‘Reconciling Cor-porate Book and Tax Net Income, Tax Years1995-2001,’’ 24 SOI Bull. 103 (2005).

Talisman, Jonathan, ‘‘Corporate Tax Shelters andthe Corporate Tax Base,’’ testimony before theSenate Finance Committee (Mar. 8, 2000).

Towery, Erin, ‘‘Unintended Consequences of Link-ing Tax Return Disclosures of Tax Certainty toFinancial Reporting for Tax Uncertainty,’’ U. Ga.working paper (2014). Presented at the June 2014IRS Research Conference.

Treasury Department, ‘‘Evidence of Growth in Cor-porate Tax Shelters,’’ The Problem of Corporate TaxShelters: Discussion, Analysis, and Legislative Pro-posals, 31-33 (July 1999).

(Tables appear on the following pages.)



(C) T

ax Analysts 2014. A




Tabl

e1A

.20

11U

.S.

Cor

pora

tion

sF

orm

1120

Sche

dule

M-3

:F

inan

cial

Stat

emen

tT

ype

byA

sset

Size

byU

TP

Fili

ngSt

atus

D1:

Fin

anci

alSt

atem

ent

Typ

e,A

sset

Size

,Sc

hedu

leU

TP

Fili

ngSt

atus

(dol

lars

inm

illio

ns)

Ret

urns

Sche

dule

LTo

talA

sset

sW

orld

wid

eIn

com

e(P

art

IL

n4)

Non

incl

udab

leF

orei

gnIn

com

eP

reta

xB

ook

Tax

Net

Inco

me

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

All

41,6

3610

010

051

,095

,020

100

100

820,

641

100

100

-776

,435

100

100

879,

279

100

100

715,

873

100

100

aSE

CFo

rm10

K/P

ublic

_4,

488

1111

37,6

97,0

4874

7486

7,24

810

610

6-7

48,5

9696

9687

8,77

110

010

063

7,69

189

89

bA

udite

d_

17,2

9842

426,

354,

953

1212

63,6

888

8-2

2,61

63

392

,621

1111

45,8

826

6

cU

naud

ited

_19

,850

4848

7,04

3,01

814

14-1

10,2

95-1

3-1

3-5

,223

11

-92,

114

-10

-10

32,3

005

5

a11

20C

onso

l_

19,4

8547

4720

,243

,234

4040

556,

127

6868

-334

,930

4343

613,

912

7070

242,

821

3434

b11

20M

ixG

rp_

420

11

23,2

73,6

3246

4626

5,44

232

32-4

27,1

2255

5526

9,23

831

3123

3,12

633

33

c11

20U

nCon

s_

21,7

3252

527,

578,

153

1515

-928

00

-14,

383

22

-3,8

720

037

,306

55

A≥

$10

mill

ion

<$5

0m

illio

n24

,012

5858

524,

047

11

-2,3

040

0-7

,086

11

-5,0

77-1

-1-5

,918

-1-1

A≥

$50

mill

ion

<$1

00m

illio

n5,

317

1313

377,

215

11

1,84

50

0-1

,271

00

2,32

30

068

00

A≥

$100

mill

ion

orm

ore

12,3

0730

3050

,193

,759

9898

821,

100

100

100

-768

,079

9999

882,

032

100

100

721,

722

101

101

A≥

$100

mill

ion

orm

ore

with

UT

PA

ll2,

074

517

35,8

83,4

6770

7177

0,00

494

94-6

95,8

2690

9180

3,21

691

9161

1,59

885

85

aSE

C10

K/P

ublic

1,22

73

1031

,349

,918

6162

732,

811

8989

-682

,842

8889

740,

593

8484

558,

750

7877

bA

udite

d53

51

42,

561,

995

55

27,2

783

3-1

1,76

82

244

,613

55

22,2

463

3

cU

naud

ited

311

13

1,97

1,55

34

49,

915

11

-1,2

160

018

,011

22

30,6

034

4

A≥

$100

mill

ion

orm

ore

with

out

UT

PA

ll10

,233

2583

14,3

10,2

9228

2951

,096

66

-72,

253

99

78,8

169

911

0,12

415

15

aSE

C10

K/P

ublic

2,14

35

176,

300,

624

1213

138,

890

1717

-63,

497

88

143,

609

1616

82,9

5912

11

bA

udite

d4,

861

1239

3,38

7,11

57

734

,550

44

-9,1

361

146

,867

55

24,1

163

3

cU

naud

ited

3,22

98

264,

622,

553

99

-122

,344

-15

-15

381

00

-111

,659

-13

-13

3,04

90

0

A≥

$1bi

llion

orm

ore

2,75

17

100

47,1

99,3

8592

100

782,

195

9510

0-7

53,2

6497

100

833,

436

9510

068

7,66

496

100

A≥

$1bi

llion

orm

ore

with

UT

PA

ll1,

072

339

35,4

88,0

6469

7575

7,39

492

97-6

89,0

8089

9179

1,48

290

9559

9,65

684

87

aSE

C10

K/P

ublic

748

227

31,1

48,0

9061

6672

3,34

088

92-6

77,1

2887

9073

2,57

883

8855

1,85

677

80

bA

udite

d15

90

62,

428,

108

55

24,4

733

3-1

0,91

41

141

,776

55

18,2

773

3

cU

naud

ited

165

06

1,91

1,86

64

49,

581

11

-1,0

380

017

,128

22

29,5

244

4

A≥

$1bi

llion

orm

ore

with

out

UT

PA

ll1,

679

461

11,7

11,3

2123

2524

,801

33

-64,

184

89

41,9

545

588

,008

1213

aSE

C10

K/P

ublic

803

229

5,76

1,87

011

1212

8,04

116

16-5

7,57

87

813

4,18

715

1678

,049

1111

bA

udite

d48

61

182,

119,

574

44

23,9

123

3-7

,671

11

29,6

683

412

,925

22

cU

naud

ited

390

114

3,82

9,87

77

8-1

27,1

53-1

5-1

61,

064

00

-121

,901

-14

-15

-2,9

670

0

A≥

$100

mill

ion

but

<$1

billi

on9,

556

2310

02,

994,

374

610

038

,905

510

0-1

4,81

52

100

48,5

986

100

34,0

585

100

A≥

$100

mill

ion

but

<$1

billi

onw

ithU

TP

All

1,00

22

1039

5,40

31

1312

,610

232

-6,7

461

4611

,735

124

11,9

422

35

aSE

C10

K/P

ublic

479

15

201,

828

07

9,47

11

24-5

,714

139

8,01

51

166,

894

120

bA

udite

d37

61

413

3,88

70

42,

805

07

-853

06

2,83

70

63,

969

112

cU

naud

ited

146

02

59,6

870

233

30

1-1

790

188

30

21,

079

03

C≥

$100

mill

ion

but

<$1

billi

onw

ithou

tU

TP

All

8,55

421

902,

598,

971

587

26,2

953

68-8

,069

154

36,8

634

7622

,116

365

aSE

C10

K/P

ublic

1,34

03

1453

8,75

41

1810

,849

128

-5,9

191

409,

422

119

4,91

01

14

bA

udite

d4,

375

1146

1,26

7,54

02

4210

,637

127

-1,4

660

1017

,199

235

11,1

902

33

cU

naud

ited

2,83

97

3079

2,67

72

264,

808

112

-683

05

10,2

411

216,

016

118



(C) T

ax Analysts 2014. A




Tabl

e1B

.20

11U

.S.

Cor

pora

tion

sF

orm

1120

Sche

dule

M-3

:F

inan

cial

Stat

emen

tT

ype

byA

sset

Size

byU

TP

Fili

ngSt

atus

D1:

Fin

anci

alSt

atem

ent

Typ

e,A

sset

Size

,Sc

hedu

leU

TP

Fili

ngSt

atus

(dol

lars

inm

illio

ns)

Pre

tax

Tem

pora

ryD

iffe

renc

eP

reta

xP

erm

anen

tD

iffe

renc

eP

osit

ive

Tax

Net

Inco

me

Taxa

ble

Inco

me

For

eign

Tax

Cre

dit

Tax

Les

sC

redi

ts

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

All

-150

,437

100

100

36,8

0710

010

01,

007,

640

100

100

894,

552

100

100

-104

,882

100

100

190,

756

100

100

aSE

C10

K/P

ublic

_-2

02,5

8813

513

5-5

,315

-14

-14

776,

399

7777

700,

876

7878

-94,

412

9090

137,

090

7272

bA

udite

d_

-54,

477

3636

9,70

726

2611

7,09

312

1210

1,08

611

11-5

,769

66

27,1

6014

14

cU

naud

ited

_10

6,62

9-7

1-7

132

,416

8888

114,

147

1111

92,5

9010

10-4

,701

44

26,5

0614

14

a11

20C

onso

l_

-181

,226

120

120

65,3

3617

817

862

5,86

362

6257

2,09

964

64-7

4,76

271

7111

8,00

862

62

b11

20M

ixG

rp_

45,3

02-3

0-3

0-3

0,03

7-8

2-8

232

6,41

032

3227

6,77

431

31-2

9,04

228

2858

,436

3131

c11

20U

nCon

s_

-14,

513

1010

1,50

84

455

,367

55

45,6

795

5-1

,077

11

14,3

128

8

A≥

$10

mill

ion

<$5

0m

il-lio

n-2

,976

22

2,19

36

624

,808

22

19,3

112

2-1

810

06,

246

33

A≥

$50

mill

ion

<$1

00m

il-lio

n-3

,812

33

1,57

14

414

,900

11

11,6

171

1-2

120

03,

719

22

A≥

$100

mill

ion

orm

ore

-143

,648

9595

33,0

4390

9096

7,93

196

9686

3,62

397

97-1

04,4

8910

010

018

0,79

195

95

A≥

$100

mill

ion

orm

ore

with

UT

PA

ll-1

62,0

0310

811

34,

532

1214

716,

857

7174

647,

420

7275

-88,

912

8585

125,

224

6669

aSE

C10

K/P

ublic

-132

,785

8892

-18,

395

-50

-56

641,

765

6466

580,

837

6567

-83,

242

7980

108,

995

5760

bA

udite

d-2

2,31

815

161,

409

44

36,8

924

433

,344

44

-4,1

254

46,

914

44

cU

naud

ited

-6,9

005

521

,518

5865

38,2

004

433

,239

44

-1,5

451

19,

314

55

A≥

$100

mill

ion

orm

ore

with

out

UT

PA

ll18

,355

-12

-13

28,5

1177

8625

1,07

425

2621

6,20

324

25-1

5,57

715

1555

,567

2931

aSE

C10

K/P

ublic

-70,

126

4749

11,9

8433

3613

2,59

813

1411

8,86

613

14-1

1,15

111

1127

,715

1515

bA

udite

d-2

9,56

520

217,

275

2022

61,4

206

652

,610

66

-1,4

311

115

,407

89

cU

naud

ited

118,

045

-78

-82

9,25

325

2857

,056

66

44,7

275

5-2

,994

33

12,4

467

7

A≥

$1bi

llion

orm

ore

-122

,932

8210

025

,746

7010

087

4,48

087

100

785,

617

8810

0-1

01,4

9997

100

157,

549

8310

0

A≥

$1bi

llion

orm

ore

with

UT

PA

ll-1

61,7

1910

713

23,

873

1115

695,

357

6980

629,

191

7080

-87,

966

8487

120,

283

6376

aSE

C10

K/P

ublic

-131

,758

8810

7-1

8,34

0-5

0-7

162

9,05

362

7257

0,24

264

73-8

2,68

079

8110

6,19

856

67

bA

udite

d-2

2,63

115

1858

52

230

,702

34

27,8

393

4-3

,864

44

5,36

33

3

cU

naud

ited

-7,3

305

621

,627

5984

35,6

024

431

,109

34

-1,4

221

18,

722

56

A≥

$1bi

llion

orm

ore

with

out

UT

PA

ll38

,787

-26

-32

21,8

7359

8517

9,12

318

2015

6,42

617

20-1

3,53

313

1337

,266

2024

aSE

C10

K/P

ublic

-64,

688

4353

10,7

4529

4211

4,92

011

1310

4,32

112

13-1

0,57

010

1023

,384

1215

bA

udite

d-2

1,11

714

174,

612

1318

30,6

983

426

,278

33

-677

11

7,24

04

5

cU

naud

ited

124,

592

-83

-101

6,51

618

2533

,505

34

25,8

293

3-2

,286

22

6,64

33

4

A≥

$100

mill

ion

but

<$1

billi

on-2

0,71

814

100

7,29

720

100

93,4

529

100

78,0

079

100

-2,9

903

100

23,2

4112

100

A≥

$100

mill

ion

but

<$1

billi

onw

ithU

TP

All

-285

01

659

29

21,5

002

2318

,230

223

-946

132

4,94

03

21

aSE

C10

K/P

ublic

-1,0

261

5-5

60

-112

,712

114

10,5

941

14-5

631

192,

797

112

bA

udite

d31

20

-282

42

116,

191

17

5,50

61

7-2

600

91,

550

17

cU

naud

ited

430

0-2

-110

0-2

2,59

80

32,

129

03

-123

04

592

03

C≥

$100

mill

ion

but

<$1

billi

onw

ithou

tU

TP

All

-20,

433

1499

6,63

818

9171

,952

777

59,7

777

77-2

,044

268

18,3

0110

79

aSE

C10

K/P

ublic

-5,4

384

261,

238

317

17,6

772

1914

,545

219

-580

119

4,33

12

19

bA

udite

d-8

,447

641

2,66

27

3630

,722

333

26,3

323

34-7

551

258,

167

435

cU

naud

ited

-6,5

474

322,

738

738

23,5

512

2518

,899

224

-709

124

5,80

33

25



(C) T

ax Analysts 2014. A




Tabl

e2A

.20

11U

.S.

Cor

pora

tion

sF

orm

1120

Sche

dule

M-3

:19

Indu

stri

esby

Ass

etSi

zeby

UT

PF

iling

Stat

us

D24

:19

Key

Indu

stri

esby

HA

S_U

TP

3fo

rC

orpo

rati

onW

ith

Tota

lAss

ets

≥$1

00M

illio

n

Ret

urns

Sche

dule

LTo

talA

sset

sW

orld

wid

eIn

com

e(P

art

IL

n4)

Non

incl

udab

leF

orei

gnIn

com

e

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

All,

asse

ts≥

$100

mill

ion

12,3

0710

010

050

,193

,759

100

100

821,

100

100

100

-768

,079

100

100

i.Su

btot

al,

man

ufac

turi

ng

No

Sche

dule

UT

P1,

802

1566

1,78

5,15

34

1776

,523

915

-45,

477

68

Sche

dule

UT

P90

87

348,

937,

084

1883

445,

044

5485

-533

,494

6992

n.Su

btot

al,

finan

cial

No

Sche

dule

UT

P4,

678

3896

8,67

5,00

617

30-1

06,9

74-1

347

8-1

,310

03

Sche

dule

UT

P18

92

420

,433

,731

4170

84,6

0110

-378

-41,

964

597

y.Su

btot

al,

othe

r

No

Sche

dule

UT

P3,

753

3079

3,85

0,13

38

3781

,547

1025

-25,

466

317

Sche

dule

UT

P97

68

216,

512,

652

1363

240,

359

2975

-120

,368

1683

a.Pe

trol

eum

refin

erie

s

No

Sche

dule

UT

P28

074

216,

424

09

14,6

702

14-5

,276

17

Sche

dule

UT

P10

026

2,12

8,28

94

9193

,198

1186

-71,

301

993

b.Ph

arm

aceu

tical

s

No

Sche

dule

UT

P58

049

27,9

360

356

90

15

00

Sche

dule

UT

P60

051

1,00

2,63

12

9752

,041

699

-173

,851

2310

0

c.C

ompu

ters

/ele

ctro

nics

No

Sche

dule

UT

P13

91

3914

3,45

20

132,

973

03

-2,1

570

2

Sche

dule

UT

P21

62

6195

3,74

52

8795

,375

1297

-131

,237

1798

d.E

lect

rica

leq

uipm

ent

No

Sche

dule

UT

P80

171

53,0

960

51,

174

05

-1,7

510

6

Sche

dule

UT

P32

029

947,

861

295

20,7

253

95-2

9,48

84

94

e.T

rans

port

atio

neq

uipm

ent

No

Sche

dule

UT

P20

72

6712

8,78

40

114,

284

16

-2,7

340

13

Sche

dule

UT

P10

01

331,

079,

082

289

64,9

918

94-1

8,19

42

87

f.Fa

bric

ated

met

al/m

achi

nery

No

Sche

dule

UT

P31

83

7121

8,90

20

2311

,984

129

-8,8

811

28

Sche

dule

UT

P12

81

2971

5,07

91

7729

,159

471

-23,

350

372

g.Fo

od/b

ever

age

man

ufac

turi

ng

No

Sche

dule

UT

P20

42

7832

9,15

31

3023

,279

347

-13,

613

232

Sche

dule

UT

P57

022

760,

280

270

26,6

373

53-2

8,54

14

68

h.O

ther

man

ufac

turi

ng

No

Sche

dule

UT

P76

76

7266

7,40

71

3317

,590

222

-11,

070

116

Sche

dule

UT

P30

52

281,

350,

116

367

62,9

188

78-5

7,53

27

84

j.N

on-b

ank

hold

ing

com

pany

No

Sche

dule

UT

P36

73

9627

4,99

21

6697

40

9-1

,482

012

Sche

dule

UT

P17

04

140,

437

034

9,73

91

91-1

0,42

71

88

k.B

ank

(and

bank

hold

ing

com

pany

)

No

Sche

dule

UT

P3,

288

2798

4,90

7,80

710

3222

,754

329

-194

01

Sche

dule

UT

P55

02

10,2

72,5

7220

6855

,146

771

-16,

088

299

l.Se

curi

ties/

com

mod

ities

No

Sche

dule

UT

P24

12

842,

651,

577

542

-146

,364

-18

118

5,29

7-1

-172

Sche

dule

UT

P47

016

3,62

8,47

47

5822

,321

3-1

8-8

,374

127

2

m.

Oth

erfin

anci

al

No

Sche

dule

UT

P78

26

9284

0,63

12

1215

,662

212

0-4

,932

141

Sche

dule

UT

P70

18

6,39

2,24

813

88-2

,605

0-2

0-7

,075

159

o.T

rade

No

Sche

dule

UT

P1,

185

1081

993,

513

232

37,2

415

30-8

,586

115

Sche

dule

UT

P28

32

192,

083,

899

468

85,4

5210

70-4

8,94

16

85

p.In

form

atio

n

No

Sche

dule

UT

P43

54

7164

5,10

71

272,

496

04

1,88

20

-5

Sche

dule

UT

P17

41

291,

720,

048

373

65,2

988

96-3

6,98

45

105

q.U

tiliti

es

No

Sche

dule

UT

P16

11

7343

8,64

01

277,

299

121

-13

01

Sche

dule

UT

P59

027

1,17

2,24

52

7327

,427

379

-2,4

920

99

r.T

rans

port

/war

ehou

sing

No

Sche

dule

UT

P24

62

8734

7,36

61

5923

40

248

00

-48

Sche

dule

UT

P36

013

242,

174

041

14,4

702

98-1

,490

014

8

s.M

inin

g

No

Sche

dule

UT

P32

93

9058

4,64

81

6125

,048

348

-16,

577

259

Sche

dule

UT

P35

010

370,

655

139

27,2

913

52-1

1,43

11

41

t.C

onst

ruct

ion

No

Sche

dule

UT

P18

21

8911

2,25

00

70-1

,032

0-2

51-3

40

6

Sche

dule

UT

P22

011

48,9

570

301,

443

035

1-5

460

94

x.Se

rvic

es/a

gric

ultu

re/o

ther

No

Sche

dule

UT

P1,

214

1077

728,

608

145

10,2

621

35-2

,617

012

Sche

dule

UT

P36

73

2387

4,67

42

5518

,979

265

-18,

484

288



(C) T

ax Analysts 2014. A




Tabl

e2B

.20

11U

.S.

Cor

pora

tion

sF

orm

1120

Sche

dule

M-3

:19

Indu

stri

esby

Ass

etSi

zeby

UT

PF

iling

Stat

us

D24

:19

Key

Indu

stri

esby

HA

S_U

TP

3fo

rC

orpo

rati

onW

ith

Tota

lAss

ets

≥$1

00M

illio

n

Pre

tax

Boo

kP

reta

xTe

mpo

rary

Dif

fere

nce

Pre

tax

Per

man

ent

Dif

fere

nce

Tax

Les

sC

redi

ts

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

Sum

Per

cent

age

Per

cent

age

All,

asse

ts≥

$100

mill

ion

882,

032

100

100

-143

,648

100

100

33,0

4310

010

018

0,79

110

010

0

i.Su

btot

al,

man

ufac

turi

ng

No

Sche

dule

UT

P63

,405

714

-19,

334

1332

2,47

57

1413

,878

822

Sche

dule

UT

P39

1,89

744

86-4

0,36

728

6814

,658

4486

50,1

2528

78

n.Su

btot

al,

finan

cial

No

Sche

dule

UT

P-9

1,15

6-1

0-1

7610

3,23

8-7

211

04,

089

12-1

715

,033

841

Sche

dule

UT

P14

2,82

416

276

-9,1

836

-10

-28,

590

-87

117

21,2

0212

59

y.Su

btot

al,

othe

r

No

Sche

dule

UT

P10

6,56

712

28-6

5,55

046

3721

,948

6654

26,6

5615

33

Sche

dule

UT

P26

8,49

630

72-1

12,4

5378

6318

,463

5646

53,8

9630

67

a.Pe

trol

eum

refin

erie

s

No

Sche

dule

UT

P14

,723

212

-5,2

764

50-5

80-2

-41,

488

121

Sche

dule

UT

P11

2,00

413

88-5

,197

450

16,7

7951

104

5,75

93

79

b.Ph

arm

aceu

tical

s

No

Sche

dule

UT

P67

10

349

60

7-5

20

038

30

5

Sche

dule

UT

P23

,681

397

6,23

0-4

9314

,943

4510

07,

748

495

c.C

ompu

ters

/ele

ctro

nics

No

Sche

dule

UT

P2,

396

04

-2,5

012

181,

248

4-4

257

70

6

Sche

dule

UT

P63

,091

796

-11,

480

882

-4,2

18-1

314

29,

510

594

d.E

lect

rica

leq

uipm

ent

No

Sche

dule

UT

P35

60

1-7

521

2055

02

-13

323

027

Sche

dule

UT

P26

,965

399

-2,9

202

80-4

,694

-14

113

884

073

e.T

rans

port

atio

neq

uipm

ent

No

Sche

dule

UT

P2,

250

04

-1,9

681

943

91

-536

80

6

Sche

dule

UT

P58

,572

796

-19,

724

1491

-8,5

86-2

610

55,

310

394

f.Fa

bric

ated

met

al/m

achi

nery

No

Sche

dule

UT

P8,

452

125

-1,2

201

401,

410

447

2,36

61

32

Sche

dule

UT

P24

,756

375

-1,8

291

601,

577

553

4,95

53

68

g.Fo

od/b

ever

age

man

ufac

turi

ng

No

Sche

dule

UT

P19

,653

245

-1,1

581

77-2

,521

-859

3,94

42

41

Sche

dule

UT

P23

,634

355

-352

023

-1,7

24-5

415,

566

359

h.O

ther

man

ufac

turi

ng

No

Sche

dule

UT

P14

,904

220

-6,9

555

581,

981

677

4,42

82

30

Sche

dule

UT

P59

,194

780

-5,0

964

4258

12

2310

,393

670

j.N

on-b

ank

hold

ing

com

pany

No

Sche

dule

UT

P2,

327

020

-3,5

032

465,

244

1632

2,19

51

54

Sche

dule

UT

P9,

468

180

-4,0

383

5411

,051

3368

1,89

51

46

k.B

ank

(and

bank

hold

ing

com

pany

)

No

Sche

dule

UT

P31

,696

422

-10,

897

815

8-1

,532

-53

7,45

34

47

Sche

dule

UT

P11

2,28

413

783,

997

-3-5

8-4

4,77

8-1

3697

8,35

85

53

l.Se

curi

ties/

com

mod

ities

No

Sche

dule

UT

P-1

41,1

81-1

611

513

1,49

1-9

210

31,

512

536

2,11

71

30

Sche

dule

UT

P18

,829

2-1

5-3

,597

3-3

2,72

98

645,

056

370

m.

Oth

erfin

anci

al

No

Sche

dule

UT

P16

,002

288

-13,

853

1071

-1,1

35-3

-89

3,26

72

36

Sche

dule

UT

P2,

242

012

-5,5

444

292,

409

718

95,

893

364

o.T

rade

No

Sche

dule

UT

P49

,379

632

-15,

913

1159

2,81

79

3313

,052

731

Sche

dule

UT

P10

5,26

512

68-1

0,90

98

415,

655

1767

28,6

1416

69

p.In

form

atio

n

No

Sche

dule

UT

P6,

048

19

6,93

0-5

-47

2,41

67

252,

758

218

Sche

dule

UT

P62

,704

791

-21,

627

1514

77,

130

2275

12,2

087

82

q.U

tiliti

es

No

Sche

dule

UT

P8,

058

116

-15,

636

1123

-1,8

18-6

1933

00

34

Sche

dule

UT

P41

,766

584

-53,

348

3777

-7,9

96-2

481

652

066

r.T

rans

port

/war

ehou

sing

No

Sche

dule

UT

P2,

075

09

-7,3

085

371,

940

610

495

41

25

Sche

dule

UT

P20

,337

291

-12,

415

963

-83

0-4

2,87

12

75

s.M

inin

g

No

Sche

dule

UT

P28

,581

354

-28,

992

2069

11,0

2533

108

2,75

82

51

Sche

dule

UT

P24

,749

346

-12,

764

931

-818

-2-8

2,63

01

49

t.C

onst

ruct

ion

No

Sche

dule

UT

P-8

330

-386

-1,5

611

9817

61

2946

40

52

Sche

dule

UT

P1,

049

048

6-2

90

242

31

7142

70

48

x.Se

rvic

es/a

gric

ultu

re/o

ther

No

Sche

dule

UT

P13

,259

251

-3,0

692

695,

391

1628

6,33

94

49

Sche

dule

UT

P12

,625

149

-1,3

601

3114

,152

4372

6,49

44

51



(C) T

ax Analysts 2014. A




Tab

le3.

2011

U.S

.Cor

por

atio

nFo

rm11

20S

ched

ule

M-3

:Cos

tof

Goo

ds

Sol

d(C

OG

S)

Rel

ated

Ad

just

men

ts$

Mil

lion

sA

dju

stm

ents

2011

All

Un

adju

sted

Boo

kA

dju

sted

CO

GS

1A

dju

sted

CO

GS

2A

dju

sted

CO

GS

3A

dju

sted

Exp

ense

s/D

edu

ctio

ns

Tota

lA

dju

sted

Ad

just

edB

ook

Oth

erin

com

eno

dif

fere

nce

34,4

88,3

65-2

5,73

3,87

144

6,38

52,

387,

246

-22,

900,

240

11,5

88,1

24

CO

GS

-51,

429,

810

16,0

21,3

6725

,733

,871

-446

,385

41,3

08,8

53-1

0,12

0,95

6

Gro

sspr

ofit

-16,

941,

445

16,0

21,3

670

02,

387,

246

18,4

08,6

131,

467,

168

Spec

ifie

din

com

e1,

804,

671

01,

804,

671

Oth

erin

com

ew

ith

dif

fere

nce

20,3

40,3

77-1

6,02

1,36

7-1

6,02

1,36

74,

319,

010

Tota

lin

com

e5,

203,

603

00

02,

387,

246

2,38

7,24

67,

590,

849

Spec

ifie

dex

pens

es/

ded

ucti

ons

-2,0

98,9

460

-2,0

98,9

46

Oth

erex

pens

es/

ded

ucti

ons

wit

hd

iffe

renc

e-2

,225

,382

0-2

,225

,382

Oth

erex

pens

es/

ded

ucti

ons

nod

iffe

renc

e0

-2,3

87,2

46-2

,387

,246

-2,3

87,2

46

Pret

axne

tin

com

e87

9,27

90

00

00

879,

279

2011

SE

CFo

rm10

K/P

ub

lic

Un

adju

sted

Boo

kA

dju

sted

CO

GS

1A

dju

sted

CO

GS

2A

dju

sted

CO

GS

3A

dju

sted

Exp

ense

s/D

edu

ctio

ns

Tota

lA

dju

sted

Ad

just

edB

ook

Oth

erin

com

eno

dif

fere

nce

29,1

67,6

53-2

4,32

4,22

435

2,20

61,

451,

683

-22,

520,

335

6,64

7,31

9

CO

GS

-45,

958,

356

15,9

93,1

5824

,324

,224

-352

,206

39,9

65,1

76-5

,993

,181

Gro

sspr

ofit

-16,

790,

703

15,9

93,1

580

01,

451,

683

17,4

44,8

4165

4,13

8

Spec

ifie

din

com

e1,

470,

206

01,

470,

206

Oth

erin

com

ew

ith

dif

fere

nce

19,2

40,0

58-1

5,99

3,15

8-1

5,99

3,15

83,

246,

900

Tota

lin

com

e3,

919,

561

00

01,

451,

683

1,45

1,68

35,

371,

244

Spec

ifie

dex

pens

es/

ded

ucti

ons

-1,5

64,3

680

-1,5

64,3

68

Oth

erex

pens

es/

ded

ucti

ons

wit

hd

iffe

renc

e-1

,476

,426

0-1

,476

,426

Oth

erex

pens

es/

ded

ucti

ons

nod

iffe

renc

e0

-1,4

51,6

83-1

,451

,683

-1,4

51,6

83

Pret

axne

tin

com

e87

8,77

10

00

00

878,

771

2011

Au

dit

edU

nad

just

edB

ook

Ad

just

edC

OG

S1

Ad

just

edC

OG

S2

Ad

just

edC

OG

S3

Ad

just

edE

xpen

ses/

Ded

uct

ion

sTo

tal

Ad

just

edA

dju

sted

Boo

k

Oth

erin

com

eno

dif

fere

nce

2,82

3,32

8-3

57,7

9044

,962

522,

623

209,

795

3,03

3,12

3

CO

GS

-2,9

99,7

9210

,505

357,

790

-44,

962

323,

333

-2,6

76,4

59

Gro

sspr

ofit

-176

,464

10,5

050

052

2,62

353

3,12

835

6,66

4

Spec

ifie

din

com

e18

5,01

60

185,

016

Oth

erin

com

ew

ith

dif

fere

nce

706,

232

-10,

505

-10,

505

695,

727

Tota

lin

com

e71

4,78

40

00

522,

623

522,

623

1,23

7,40

8

Spec

ifie

dex

pens

es/

ded

ucti

ons

-286

,067

0-2

86,0

67

Oth

erex

pens

es/

ded

ucti

ons

wit

hd

iffe

renc

e-3

36,0

960

-336

,096

Oth

erex

pens

es/

ded

ucti

ons

nod

iffe

renc

e0

-522

,623

-522

,623

-522

,623

Pret

axne

tin

com

e92

,621

00

00

092

,621

2011

Un

aud

ited

Un

adju

sted

Boo

kA

dju

sted

CO

GS

1A

dju

sted

CO

GS

2A

dju

sted

CO

GS

3A

dju

sted

Exp

ense

s/D

edu

ctio

ns

Tota

lA

dju

sted

Ad

just

edB

ook

Oth

erin

com

eno

dif

fere

nce

2,49

7,38

3-1

,051

,857

49,2

1641

2,94

0-5

89,7

011,

907,

682

CO

GS

-2,4

71,6

6117

,704

1,05

1,85

7-4

9,21

61,

020,

345

-1,4

51,3

17

Gro

sspr

ofit

25,7

2217

,704

00

412,

940

430,

644

456,

365

Spec

ifie

din

com

e14

9,44

90

149,

449

Oth

erin

com

ew

ith

dif

fere

nce

394,

086

-17,

704

-17,

704

376,

383

Tota

lin

com

e56

9,25

70

00

412,

940

412,

940

982,

197

Spec

ifie

dex

pens

es/

ded

ucti

ons

-248

,510

0-2

48,5

10

Oth

erex

pens

es/

ded

ucti

ons

wit

hd

iffe

renc

e-4

12,8

600

-412

,860

Oth

erex

pens

es/

ded

ucti

ons

nod

iffe

renc

e0

-412

,940

-412

,940

-412

,940

Pret

axne

tin

com

e-9

2,11

40

00

00

-92,

114



(C) T

ax Analysts 2014. A




Tabl

e4.

2010

-201

1:U

.S.

Cor

pora

tion

For

m11

20Sc

hedu

leM

-3:

Min

iM

-3by

UT

PSt

atus

:SE

CF

orm

10K

/Pub

licF

S:A

sset

s$1

00M

illio

nor

Mor

eSp

ecif

ied

vs.

Oth

erby

FS

&U

TP

$in

Mill

ions

Per

cent

age

ofA

djus

ted

Tota

lIn

com

eB

ook

Per

cent

age

ofP

reta

xB

ook

2010

SEC

For

m10

K/P

ublic

Wit

hU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t1,

287,

530

-24,

531

3,89

11,

266,

891

-20,

640

33.5

1-0

.64

0.10

32.9

8-0

.54

-3.6

0.6

-3.0

Spec

ified

inco

me

1,28

9,81

5-1

14,7

19-1

3,34

91,

161,

754

-128

,067

33.5

7-2

.99

-0.3

530

.24

-3.3

3-1

6.7

-1.9

-18.

6

Adj

uste

dot

her

inco

me

with

diff

eren

ce1,

264,

432

3,58

3-5

8,28

71,

209,

747

-54,

704

32.9

10.

09-1

.52

31.4

9-1

.42

0.5

-8.5

-8.0

Adj

uste

dto

tal

inco

me

3,84

1,77

8-1

35,6

67-6

7,74

53,

638,

392

-203

,412

100.

00-3

.53

-1.7

694

.71

-5.2

9-1

9.8

-9.9

-29.

6

Spec

ified

expe

nses

/ded

uctio

ns-1

,230

,384

28,9

9422

,723

-1,1

78,6

7651

,718

-32.

030.

750.

59-3

0.68

1.35

4.2

3.3

7.5

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-9

78,9

50-3

4,79

4-4

,483

-1,0

18,2

42-3

9,27

6-2

5.48

-0.9

1-0

.12

-26.

50-1

.02

-5.1

-0.7

-5.7

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-9

45,6

410

0-9

45,6

410

-24.

610.

000.

00-2

4.61

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e68

6,80

3-1

41,4

66-4

9,50

449

5,83

3-1

90,9

7017

.88

-3.6

8-1

.29

12.9

1-4

.97

-20.

6-7

.2-2

7.8

2010

SEC

For

m10

K/P

ublic

Wit

hout

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t62

4,08

325

,810

-140

649,

762

25,6

6945

.99

1.90

-0.0

147

.88

1.89

11.4

-0.1

11.3

Spec

ified

inco

me

147,

010

15,5

62-4

7,01

211

5,56

6-3

1,45

010

.83

1.15

-3.4

68.

52-2

.32

6.8

-20.

7-1

3.8

Adj

uste

dot

her

inco

me

with

diff

eren

ce58

6,02

9-3

9,25

2-1

7,03

152

9,74

5-5

6,28

343

.18

-2.8

9-1

.25

39.0

3-4

.15

-17.

3-7

.5-2

4.8

Adj

uste

dto

tal

inco

me

1,35

7,12

22,

120

-64,

184

1,29

5,07

4-6

2,06

510

0.00

0.16

-4.7

395

.43

-4.5

70.

9-2

8.2

-27.

3

Spec

ified

expe

nses

/ded

uctio

ns-3

38,3

53-2

6,28

9-1

40-3

64,7

99-2

6,42

9-2

4.93

-1.9

4-0

.01

-26.

88-1

.95

-11.

6-0

.1-1

1.6

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-3

77,0

11-1

3,38

817

,336

-373

,063

3,94

8-2

7.78

-0.9

91.

28-2

7.49

0.29

-5.9

7.6

1.7

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-4

14,4

250

0-4

14,4

250

-30.

540.

000.

00-3

0.54

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e22

7,33

2-3

7,55

7-4

6,98

914

2,78

6-8

4,54

616

.75

-2.7

7-3

.46

10.5

2-6

.23

-16.

5-2

0.7

-37.

2

2011

SEC

For

m10

K/P

ublic

Wit

hU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t24

5,22

113

,563

-2,7

4825

6,03

710

,816

5.90

0.33

-0.0

76.

160.

261.

8-0

.41.

5

Spec

ified

inco

me

1,25

2,74

5-8

3,87

2-1

5,12

51,

153,

790

-98,

996

30.1

4-2

.02

-0.3

627

.76

-2.3

8-1

1.3

-2.0

-13.

4

Adj

uste

dot

her

inco

me

with

diff

eren

ce2,

658,

720

-7,8

95-3

3,59

52,

617,

230

-41,

490

63.9

6-0

.19

-0.8

162

.96

-1.0

0-1

.1-4

.5-5

.6

Adj

uste

dto

tal

inco

me

4,15

6,68

6-7

8,20

4-5

1,46

74,

027,

056

-129

,671

100.

00-1

.88

-1.2

496

.88

-3.1

2-1

0.6

-6.9

-17.

5

Spec

ified

expe

nses

/ded

uctio

ns-1

,280

,402

-19,

186

29,0

58-1

,270

,570

9,87

2-3

0.80

-0.4

60.

70-3

0.57

0.24

-2.6

3.9

1.3

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

,090

,956

-35,

395

4,01

9-1

,122

,333

-31,

377

-26.

25-0

.85

0.10

-27.

00-0

.75

-4.8

0.5

-4.2

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-1

,044

,741

00

-1,0

44,7

410

-25.

130.

000.

00-2

5.13

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e74

0,59

3-1

32,7

85-1

8,39

558

9,41

3-1

51,1

8017

.82

-3.1

9-0

.44

14.1

8-3

.64

-17.

9-2

.5-2

0.4

2011

SEC

For

m10

K/P

ublic

Wit

hout

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t39

7,31

7-1

8,37

71,

744

380,

669

-16,

634

33.3

1-1

.54

0.15

31.9

2-1

.39

-12.

81.

2-1

1.6

Spec

ified

inco

me

214,

691

2,82

712

,700

230,

274

15,5

2618

.00

0.24

1.06

19.3

11.

302.

08.

810

.8

Adj

uste

dot

her

inco

me

with

diff

eren

ce58

0,65

62,

216

-3,6

2857

9,24

4-1

,412

48.6

90.

19-0

.30

48.5

7-0

.12

1.5

-2.5

-1.0

Adj

uste

dto

tal

inco

me

1,19

2,66

4-1

3,33

410

,816

1,19

0,18

8-2

,519

100.

00-1

.12

0.91

99.7

9-0

.21

-9.3

7.5

-1.8

Spec

ified

expe

nses

/ded

uctio

ns-2

78,5

18-4

4,64

217

8-3

23,0

24-4

4,46

4-2

3.35

-3.7

40.

01-2

7.08

-3.7

3-3

1.1

0.1

-31.

0

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-3

77,1

89-1

2,15

099

0-3

88,3

49-1

1,16

0-3

1.63

-1.0

20.

08-3

2.56

-0.9

4-8

.50.

7-7

.8

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-3

93,3

480

0-3

93,3

480

-32.

980.

000.

00-3

2.98

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e14

3,60

9-7

0,12

611

,984

85,4

66-5

8,14

212

.04

-5.8

81.

007.

17-4

.87

-48.

88.

3-4

0.5



(C) T

ax Analysts 2014. A




Tabl

e5.

2010

-201

1:U

.S.

Cor

pora

tion

For

m11

20Sc

hedu

leM

-3:

Min

iM

-3by

UT

PSt

atus

:A

udit

edF

S:A

sset

s$1

00M

illio

nor

Mor

eSp

ecif

ied

vs.

Oth

erby

FS

&U

TP

$in

Mill

ions

Per

cent

age

ofA

djus

ted

Tota

lIn

com

eB

ook

Per

cent

age

ofP

reta

xB

ook

2010

Aud

ited

Wit

hU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t16

,809

8,59

9-4

425

,372

8,55

54.

242.

17-0

.01

6.39

2.16

38.8

-0.2

38.6

Spec

ified

inco

me

53,5

266,

630

-7,7

5652

,399

-1,1

2513

.49

1.67

-1.9

513

.20

-0.2

829

.9-3

5.0

-5.1

Adj

uste

dot

her

inco

me

with

diff

eren

ce32

6,53

6-1

0,78

1-1

,716

314,

039

-12,

497

82.2

8-2

.72

-0.4

379

.13

-3.1

5-4

8.7

-7.8

-56.

4

Adj

uste

dto

tal

inco

me

396,

871

4,44

9-9

,516

391,

810

-5,0

6710

0.00

1.12

-2.4

098

.72

-1.2

820

.1-4

3.0

-22.

9

Spec

ified

expe

nses

/ded

uctio

ns-1

15,0

32-8

186,

103

-109

,754

5,28

5-2

8.98

-0.2

11.

54-2

7.65

1.33

-3.7

27.6

23.9

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

43,1

6713

,925

257

-128

,985

14,1

82-3

6.07

3.51

0.06

-32.

503.

5762

.91.

264

.1

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-1

16,5

310

0-1

16,5

310

-29.

360.

000.

00-2

9.36

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e22

,139

17,5

61-3

,155

36,5

4514

,406

5.58

4.42

-0.7

99.

213.

6379

.3-1

4.3

65.1

2010

Aud

ited

Wit

hout

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t21

0,20

9-4

,403

353

206,

199

-4,0

5134

.65

-0.7

30.

0633

.99

-0.6

7-1

0.4

0.8

-9.6

Spec

ified

inco

me

114,

477

-1,2

662,

870

116,

061

1,60

318

.87

-0.2

10.

4719

.13

0.26

-3.0

6.8

3.8

Adj

uste

dot

her

inco

me

with

diff

eren

ce28

1,99

0-3

41-6

,459

275,

191

-6,8

0046

.48

-0.0

6-1

.06

45.3

6-1

.12

-0.8

-15.

2-1

6.1

Adj

uste

dto

tal

inco

me

606,

676

-6,0

11-3

,237

597,

452

-9,2

4810

0.00

-0.9

9-0

.53

98.4

8-1

.52

-14.

2-7

.6-2

1.8

Spec

ified

expe

nses

/ded

uctio

ns-1

46,5

71-9

,770

5,91

1-1

50,4

53-3

,859

-24.

16-1

.61

0.97

-24.

80-0

.64

-23.

114

.0-9

.1

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

59,1

9510

837

7-1

58,7

1048

5-2

6.24

0.02

0.06

-26.

160.

080.

30.

91.

1

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-2

58,5

510

0-2

58,5

510

-42.

620.

000.

00-4

2.62

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e42

,359

-15,

672

3,05

129

,738

-12,

621

6.98

-2.5

80.

504.

90-2

.08

-37.

07.

2-2

9.8

2011

Aud

ited

Wit

hU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t-1

,516

8,83

762

7,38

38,

899

-0.3

62.

120.

011.

772.

1419

.80.

119

.9

Spec

ified

inco

me

52,2

236,

549

-9,5

9149

,183

-3,0

4212

.55

1.57

-2.3

111

.82

-0.7

314

.7-2

1.5

-6.8

Adj

uste

dot

her

inco

me

with

diff

eren

ce36

5,27

5-9

,796

-505

354,

974

-10,

301

87.8

1-2

.35

-0.1

285

.33

-2.4

8-2

2.0

-1.1

-23.

1

Adj

uste

dto

tal

inco

me

415,

982

5,59

0-1

0,03

441

1,53

9-4

,444

100.

001.

34-2

.41

98.9

3-1

.07

12.5

-22.

5-1

0.0

Spec

ified

expe

nses

/ded

uctio

ns-1

13,7

37-2

4,73

59,

572

-128

,900

-15,

163

-27.

34-5

.95

2.30

-30.

99-3

.65

-55.

421

.5-3

4.0

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

22,8

02-3

,174

1,87

1-1

24,1

04-1

,303

-29.

52-0

.76

0.45

-29.

83-0

.31

-7.1

4.2

-2.9

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-1

34,8

300

0-1

34,8

300

-32.

410.

000.

00-3

2.41

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e44

,613

-22,

318

1,40

923

,704

-20,

909

10.7

2-5

.37

0.34

5.70

-5.0

3-5

0.0

3.2

-46.

9

2011

Aud

ited

Wit

hout

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t21

5,91

2-6

,756

490

214,

503

-6,2

6635

.60

-1.1

10.

0835

.36

-1.0

3-1

4.4

1.0

-13.

4

Spec

ified

inco

me

114,

346

-7,1

341

102,

304

-7,1

3218

.85

-1.1

80.

0016

.87

-1.1

8-1

5.2

0.0

-15.

2

Adj

uste

dot

her

inco

me

with

diff

eren

ce27

6,28

7-1

,302

-772

274,

321

-2,0

7545

.55

-0.2

1-0

.13

45.2

3-0

.34

-2.8

-1.6

-4.4

Adj

uste

dto

tal

inco

me

606,

546

-15,

192

-281

591,

128

-15,

473

100.

00-2

.50

-0.0

597

.46

-2.5

5-3

2.4

-0.6

-33.

0

Spec

ified

expe

nses

/ded

uctio

ns-1

41,5

45-1

4,22

96,

334

-149

,491

-7,8

95-2

3.34

-2.3

51.

04-2

4.65

-1.3

0-3

0.4

13.5

-16.

8

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

58,2

00-1

451,

222

-157

,126

1,07

7-2

6.08

-0.0

20.

20-2

5.91

0.18

-0.3

2.6

2.3

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-2

59,9

350

0-2

59,9

350

-42.

850.

000.

00-4

2.85

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e46

,867

-29,

565

7,27

524

,577

-22,

290

7.73

-4.8

71.

204.

05-3

.67

-63.

115

.5-4

7.6



(C) T

ax Analysts 2014. A




Tabl

e6.

2010

-201

1:U

.S.

Cor

pora

tion

For

m11

20Sc

hedu

leM

-3:

Min

iM

-3by

UT

PSt

atus

:U

naud

ited

FS:

Ass

ets

$100

Mill

ion

orM

ore

Spec

ifie

dvs

.O

ther

byF

S&

UT

P$

inM

illio

nsP

erce

ntag

eof

Adj

uste

dTo

tal

Inco

me

Boo

kP

erce

ntag

eof

Pre

tax

Boo

k

2010

Una

udit

edW

ith

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t29

,257

484

127

29,8

6861

19.

750.

160.

049.

950.

203.

30.

94.

2

Spec

ified

inco

me

44,9

255,

540

10,9

9561

,412

16,5

3414

.97

1.85

3.66

20.4

65.

5138

.275

.811

3.9

Adj

uste

dot

her

inco

me

with

diff

eren

ce22

5,91

9-3

,963

-2,6

5021

9,30

6-6

,613

75.2

8-1

.32

-0.8

873

.08

-2.2

0-2

7.3

-18.

3-4

5.6

Adj

uste

dto

tal

inco

me

300,

101

2,06

08,

472

310,

586

10,5

3210

0.00

0.69

2.82

103.

493.

5114

.258

.472

.6

Spec

ified

expe

nses

/ded

uctio

ns-9

5,61

8-1

,549

5,10

8-9

2,01

23,

558

-31.

86-0

.52

1.70

-30.

661.

19-1

0.7

35.2

24.5

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

03,5

452,

778

1,07

0-9

9,69

73,

849

-34.

500.

930.

36-3

3.22

1.28

19.1

7.4

26.5

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-8

6,42

50

0-8

6,42

50

-28.

800.

000.

00-2

8.80

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e14

,514

3,28

914

,650

32,4

5317

,939

4.84

1.10

4.88

10.8

15.

9822

.710

0.9

123.

6

2010

Una

udit

edW

itho

utU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t20

3,19

0-2

,239

8720

1,03

7-2

,153

40.2

3-0

.44

0.02

39.8

1-0

.43

-3.3

0.1

-3.2

Spec

ified

inco

me

121,

951

-2,1

29-1

8,91

010

0,89

6-2

1,03

924

.15

-0.4

2-3

.74

19.9

8-4

.17

-3.1

-27.

7-3

0.8

Adj

uste

dot

her

inco

me

with

diff

eren

ce17

9,90

7-5

,082

1,29

517

6,12

7-3

,787

35.6

2-1

.01

0.26

34.8

7-0

.75

-7.4

1.9

-5.5

Adj

uste

dto

tal

inco

me

505,

049

-9,4

50-1

7,52

947

8,06

0-2

6,97

910

0.00

-1.8

7-3

.47

94.6

6-5

.34

-13.

8-2

5.7

-39.

5

Spec

ified

expe

nses

/ded

uctio

ns-1

35,6

31-9

,390

-2,9

39-1

47,9

55-1

2,32

9-2

6.86

-1.8

6-0

.58

-29.

30-2

.44

-13.

7-4

.3-1

8.0

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

27,3

36-2

,225

-2,5

22-1

32,0

84-4

,747

-25.

21-0

.44

-0.5

0-2

6.15

-0.9

4-3

.3-3

.7-6

.9

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-1

73,7

530

0-1

73,7

530

-34.

400.

000.

00-3

4.40

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e68

,328

-21,

065

-22,

990

24,2

74-4

4,05

513

.53

-4.1

7-4

.55

4.81

-8.7

2-3

0.8

-33.

6-6

4.5

2011

Una

udit

edW

ith

UT

PF

iling

Col

umn

AB

ook

Col

umn

BTe

mpo

rary

Col

umn

CP

erm

anen

tC

olum

nD

Tax

Tota

lD

iffe

renc

eB

ook

Tem

pora

ryP

erm

anen

tTa

xTo

tal

Dif

fere

nce

Tem

pora

ryP

erm

anen

tTo

tal

Dif

fere

nce

Adj

uste

dgr

oss

profi

t10

5,49

72,

609

342

108,

449

2,95

232

.95

0.81

0.11

33.8

80.

9214

.51.

916

.4

Spec

ified

inco

me

48,8

3327

813

,225

62,3

3213

,502

15.2

50.

094.

1319

.47

4.22

1.5

73.4

75.0

Adj

uste

dot

her

inco

me

with

diff

eren

ce16

5,80

051

7-8

2716

5,48

9-3

1151

.79

0.16

-0.2

651

.69

-0.1

02.

9-4

.6-1

.7

Adj

uste

dto

tal

inco

me

320,

130

3,40

312

,740

336,

270

16,1

4310

0.00

1.06

3.98

105.

045.

0418

.970

.789

.6

Spec

ified

expe

nses

/ded

uctio

ns-9

0,56

4-7

,682

3,70

4-9

4,53

8-3

,978

-28.

29-2

.40

1.16

-29.

53-1

.24

-42.

720

.6-2

2.1

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-1

15,5

25-2

,622

5,07

4-1

13,0

732,

452

-36.

09-0

.82

1.58

-35.

320.

77-1

4.6

28.2

13.6

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-9

6,03

00

0-9

6,03

00

-30.

000.

000.

00-3

0.00

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e18

,011

-6,9

0021

,518

32,6

2814

,618

5.63

-2.1

66.

7210

.19

4.57

-38.

311

9.5

81.2

2011

Una

udit

edW

itho

utU

TP

Fili

ngC

olum

nA

Boo

kC

olum

nB

Tem

pora

ryC

olum

nC

Per

man

ent

Col

umn

DTa

xTo

tal

Dif

fere

nce

Boo

kTe

mpo

rary

Per

man

ent

Tax

Tota

lD

iffe

renc

eTe

mpo

rary

Per

man

ent

Tota

lD

iffe

renc

e

Adj

uste

dgr

oss

profi

t21

8,46

9-2

,970

121

5,46

4-2

,969

45.1

8-0

.61

0.00

44.5

6-0

.61

-2.7

0.0

-2.7

Spec

ified

inco

me

85,0

796,

692

4,36

796

,140

11,0

5917

.60

1.38

0.90

19.8

82.

296.

03.

99.

9

Adj

uste

dot

her

inco

me

with

diff

eren

ce17

9,95

170

1,51

318

1,53

51,

584

37.2

20.

010.

3137

.55

0.33

0.1

1.4

1.4

Adj

uste

dto

tal

inco

me

483,

499

3,79

25,

882

493,

139

9,67

410

0.00

0.78

1.22

101.

992.

003.

45.

38.

7

Spec

ified

expe

nses

/ded

uctio

ns-1

34,1

30-1

3,87

794

-147

,883

-13,

783

-27.

74-2

.87

0.02

-30.

59-2

.85

-12.

40.

1-1

2.3

Oth

erex

pens

es/d

educ

tions

with

diff

eren

ce-2

63,1

4512

8,13

13,

277

-131

,734

131,

407

-54.

4326

.50

0.68

-27.

2527

.18

114.

82.

911

7.7

Adj

uste

dot

her

expe

nses

/ded

uctio

nsno

diff

eren

ce-1

97,8

830

0-1

97,8

830

-40.

930.

000.

00-4

0.93

0.00

0.0

0.0

0.0

Pret

axne

tin

com

e-1

11,6

5911

8,04

59,

253

15,6

3912

7,29

8-2

3.09

24.4

11.

913.

2326

.33

105.

78.

311

4.0



(C) T

ax Analysts 2014. A




Documents

No Job Name - Internal Revenue Service...2010-2011 Schedule M-3 Profiles And Schedule UTP Filing Status By Charles Boynton, Portia DeFilippes, Ellen Legel, and Lisa Rupert Table of