Fillable Form 8916-A - Supplemental Attachment To Schedule M-3

Form 8916-A (2013)

Page

Section references are to the Internal Revenue Code

263A costs computed after LIFO computations. LIFO

unless otherwise noted.

taxpayers not using a simplified section 263A method

should report costs attributable to additional section

Future Developments

263A prior to performing LIFO computation. Differences

For the latest information about developments related to

due to purchasing, and storage and handling costs,

Form 8916-A and its instructions, such as legislation

should generally be reported on line 2n (to the extent not

enacted after they were published, go to

already included in lines 2a through 2m). Report the

additional section 263A cost adjustments to ending

inventory on line 2n (and the reversal of the prior year

General Instructions

ending inventory, if applicable).

Purpose of Form

Lines 4 and 5

Use Form 8916-A to provide a detailed schedule of the

If the taxpayer does not distinguish between

amounts reported on the applicable Schedule M-3 for

obsolescence and excess inventory reserves and lower of

cost of goods sold, interest income and interest expense.

cost or market write-downs in its general ledger, report all

amounts relating to these reserves on line 4 for excess

Who Must File

inventory and obsolescence reserves.

Form 8916-A must be filed for each separate entity

Line 6

required to file a Schedule M-3 for Form 1065, Form

Attach a statement that separately states and adequately

1065-B, Form 1120, Form 1120-C, Form 1120-L, Form

discloses the nature and amount of each expense

1120-PC, or Form 1120S.

reported on this line. See the instructions for the

Consolidated groups. In the case of a consolidated tax

applicable Schedule M-3 for a definition of “separately

group, a Form 8916-A must be filed as part of the

stated and adequately disclosed.” It is not required that

Schedules M-3 prepared for the parent company, each

the supporting detail for Form 8916-A, Part I, line 6, be

subsidiary, the eliminations Schedule M-3, and the

presented for the eliminations Schedule M-3 or the

consolidated Schedule M-3. It is not required that the

consolidated Schedule M-3. Report differences between

supporting detail for Form 8916-A, Part I, line 6, be

book inventory costs and section 471 inventory costs on

presented for the eliminations Schedule M-3 or the

this line.

consolidated Schedule M-3.

Line 7

Mixed groups. In the case of a mixed group (as

described in the instructions for Schedule M-3 for Form

Report all other items with no differences on this line. For

1120, Form 1120-L, and Form 1120-PC), a Form 8916-A,

example, if book inventory costs equal section 471

if applicable, is required at the sub-consolidated level and

inventory costs, this line should report total book

the sub-consolidated elimination level.

inventory and section 471 inventory costs without regard

to amounts reported on lines 1 through 5.

How To File

Line 8

Attach Form 8916-A to each applicable separate

Line 8 should equal the amount reported on Schedule

Schedule M-3.

M-3 (Form 1120), Part II, line 17; Schedule M-3 (Form

Specific Instructions

1120S), Part II, line 15; or Schedule M-3 (Form 1065), Part

II, line 15. See the instructions for the applicable

A corporation is not required to complete columns (a) and

Schedule M-3.

(d) if the corporation is not required to complete these

Part II. Interest Income

columns on Schedule M-3. See the instructions for Parts

II and III of the applicable Schedule M-3.

Line 1

Columns (b) and (c) must be completed for any tax year

Report on line 1, column (a), tax-exempt interest income

for which the corporation files Form 8916-A.

defined under section 103. Complete columns (b) and (c),

Part I. Cost of Goods Sold

as applicable.

Line 2

Line 1

Report on line 2, column (a), the total amount of interest

Report differences attributable to cost flow assumptions,

income included on Schedule M-3, Part I, line 11, from

for example, differences between book and tax LIFO

hybrid securities characterized as debt for financial

computations. Generally, differences in the LIFO reserves

accounting and as equity for tax purposes. Report on line

for book and tax purposes should be reported on this line.

2, column (d), the total amount of interest income from

Line 2n

hybrid securities characterized as equity for financial

Report differences attributable to section 263A. For

accounting and as debt for tax purposes. Complete

example, if book inventory costs do not equal section 471

columns (b) and (c), as applicable. Report interest income

inventory costs, report differences between section 471

from a debt that is both a hybrid debt and a related party

inventory costs and section 263A inventory costs. This

debt on line 2 and not on line 4a or 4b.

includes all cost of goods sold differences, not just

differences attributable to additional section 263A cost

adjustments to ending inventory. LIFO taxpayers using

the simplified production method or the simplified resale

method should report the amount of additional section

Form 8916-A - Supplemental Attachment To Schedule M-3 - 2013 Page 3

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