A REVIEW OF SCHEDULE M-3: THE INTERNAL REVENUE SERVICE'S NEW BOOK-TAX RECONCILIATION TOOL

摘要

In the late 1990s,the Department of Treasury (Treasury) began to focus in earnest on the growing difference between financial statement income and tax return income (the book-tax gap).A Treasury report in 1999 and Treasury testimony in 2000 by then Assistant Secretary (Tax Policy) Jonathan Talisman noted that book-tax income differences increased sigonificantly over the 1991 to 1997 period.Both the report and the testimony viewed the 1990s book-tax gap as a possible indicator of corporate tax shelter activity,but also noted the deficiencies in Schedule M-1.