Form 8916-A, Supplemental Attachment to Schedule M-3, is required when cost of goods sold, interest income and/or interest expense is included on the return.
Follow these steps to manually enter input for Form 8916-A:
Corporation
- Go to Screen 39, Schedule M-1, M-3.
- Select Supplemental Attachment to Schedule M-3 from the left menu.
- Make applicable entries in Part I - Cost of Goods Sold.
- Make applicable entries in Part II- Interest Income.
- Make applicable entries in Part III- Interest Expense.
S Corporation
- Go to Screen 31, Schedule M-1, M-3.
- Select Supplemental Attachment to Schedule M-3 from the left menu.
- Make applicable entries in Part I - Cost of Goods Sold.
- Make applicable entries in Part II- Interest Income.
- Make applicable entries in Part III- Interest Expense.
Partnership
- Go to Screen 27, Schedule M-1, M-3 (Book-Tax Adj.)
- Select Supplement to Schedule M-3 from the left menu.
- Make applicable entries in Part I - Cost of Goods Sold.
- Make applicable entries in Part II- Interest Income.
- Make applicable entries in Part III- Interest Expense.
Follow the same guidelines for the M-3 when making input for Form 8916-A.
- Only columns (b) and (c) should be completed for the first year a corporation is required to file Schedule M-3.
- Columns (a) and (d) can be forced to complete by checking the box Complete columns (a) and (d) of Parts II and III within the M-3 input.
- When entering amounts for columns (b) and (c), enter as a positive amount, any item for which the tax return amount is greater than the income statement amount. Enter as a negative amount, any item for which the tax return amount is less than the income statement amount.
- For consolidated returns, use the 8916-A input screen of the consolidator to enter any eliminations or adjustments needed to arrive at consolidated income.
