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

Form 8916-A (2014)

Page

Section references are to the Internal Revenue Code unless

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

otherwise noted.

which the corporation files Form 8916-A.

Future Developments

Part I. Cost of Goods Sold

For the latest information about developments related to

Line 1

Form 8916-A and its instructions, such as legislation

Report differences attributable to cost flow assumptions, for

enacted after they were published, go to

example, differences between book and tax LIFO

computations. Generally, differences in the LIFO reserves for

book and tax purposes should be reported on this line.

General Instructions

Line 2n

What's New

Report differences attributable to section 263A. For example,

For tax years ending December 31, 2014, or later, certain

if book inventory costs do not equal section 471 inventory

separate entities that (a) are required to file a Schedule M-3

costs, report differences between section 471 inventory

and have less than $50 million in total assets at the end of

costs and section 263A inventory costs. This includes all

the tax year or (b) are not required to file a Schedule M-3 and

cost of goods sold differences, not just differences

voluntarily file a Schedule M-3, are not required to file Form

attributable to additional section 263A cost adjustments to

8916-A but may voluntarily do so. See Who Must File, below.

ending inventory. LIFO taxpayers using the simplified

production method or the simplified resale method should

Purpose of Form

report the amount of additional section 263A costs

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

computed after LIFO computations. LIFO taxpayers not

amounts reported on the applicable Schedule M-3 for cost

using a simplified section 263A method should report costs

of goods sold, interest income and interest expense.

attributable to additional section 263A prior to performing

Who Must File

LIFO computation. Differences due to purchasing, and

storage and handling costs, should generally be reported on

Generally, Form 8916-A must be filed for each separate

line 2n (to the extent not already included in lines 2a through

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

2m). Report the additional section 263A cost adjustments to

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

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

1120-PC, or Form 1120S.

ending inventory, if applicable).

However, for tax years ending December 31, 2014, or

Lines 4 and 5

later, certain separate entities that (a) are required to file a

If the taxpayer does not distinguish between obsolescence

Schedule M-3 and have less than $50 million in total assets

and excess inventory reserves and lower of cost or market

at the end of the tax year or (b) are not required to file a

write-downs in its general ledger, report all amounts relating

Schedule M-3 and voluntarily file a Schedule M-3, are not

to these reserves on line 4 for excess inventory and

required to file Form 8916-A but may voluntarily do so.

obsolescence reserves.

Note. Form 1120, Schedule M-3 mixed group filers, all Form

Line 6

1120-L, Schedule M-3 filers, and all Form 1120-PC,

Schedule M-3 filers must continue to file Form 8916-A.

Attach a statement that separately states and adequately

See the instructions for the applicable Schedule M-3 for

discloses the nature and amount of each expense reported

each separate entity.

on this line. See the instructions for the applicable Schedule

M-3 for a definition of “separately stated and adequately

Consolidated groups. In the case of a consolidated tax

disclosed.” It is not required that the supporting detail for

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

Form 8916-A, Part I, line 6, be presented for the eliminations

M-3 prepared for the parent company, each subsidiary, the

Schedule M-3 or the consolidated Schedule M-3. Report

eliminations Schedule M-3, and the consolidated Schedule

differences between book inventory costs and section 471

M-3. It is not required that the supporting detail for Form

inventory costs on this line.

8916-A, Part I, line 6, be presented for the eliminations

Schedule M-3 or the consolidated Schedule M-3.

Line 7

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

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

the instructions for Schedule M-3 for Form 1120, Form

example, if book inventory costs equal section 471 inventory

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

costs, this line should report total book inventory and section

is required at the sub-consolidated level and the sub-

471 inventory costs without regard to amounts reported on

consolidated elimination level.

lines 1 through 5.

How To File

Line 8

Line 8 should equal the amount reported on Schedule M-3

Attach Form 8916-A to each applicable separate Schedule

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

M-3.

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

Specific Instructions

See the instructions for the applicable Schedule M-3.

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

if the corporation is not required to complete these columns

on Schedule M-3. See the instructions for Parts II and III of

the applicable Schedule M-3.

Form 8916-A - Supplemental Attachment To Schedule M-3 - 2014 Page 3

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