1120 Sch. B

Additional Information for Schedule M-3 Filers

Agency
IRS
Revision
Rev. December 2018
Fillable fields
24
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 1120 Sch. B online
Page 1 of form 1120 Sch. B

Schedule B (Form 1120): Additional Information for Schedule M-3 Filers

Schedule B (Form 1120), Additional Information for Schedule M-3 Filers, is a corporate attachment to Form 1120. The About page says filers of Schedule M-3 (Form 1120), Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More, use it to provide answers to additional questions.

The schedule is a set of yes or no questions about the tax year: disproportionate partnership allocations, transfers or acquisitions of intangible assets with related persons, cost-sharing arrangements with related foreign parties, changes in accounting principle or method, VEBA trusts, indirect costs and nonshareholder contributions to capital. It prints "Attach to Form 1120" and asks for the corporation's name and employer identification number (EIN). Instructions are printed on page 2 of the PDF.

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What's on Schedule B (Form 1120)

Header

The corporation's name and employer identification number (EIN).

Question 1: partnership allocations

Whether Schedule M-3 Part II, line 9 or 10, column (d) reflects partnership allocations disproportionate to the corporation's capital contribution or sharing ratio.

Questions 2 to 4: intangibles and cost sharing

Transfers or acquisitions of intangible assets with related persons under section 267(b), and cost-sharing arrangements with related foreign parties without a Form 5471.

Questions 5 and 6: accounting changes

Changes in accounting principle for financial accounting purposes and changes in a method of accounting for U.S. income tax purposes.

Questions 7 to 9: VEBAs and indirect costs

Ownership of VEBA trusts holding funds for employee benefits, indirect cost allocation for self-constructed assets, and mixed-service cost treatment.

Question 10: contributions to capital

Whether the corporation took a filing position under section 118 or 362(c) treating an amount from nonshareholders as a contribution to capital.

How to fill out Schedule B (Form 1120)

  1. 1

    Name and EIN

    Enter the corporation's name and employer identification number as on Form 1120.

  2. 2

    Question 1

    The instructions say to answer Yes if the corporation is a partner that received special allocations of income, gain, loss, deduction or credit from the partnership. They give a 99% depreciation allocation as an example.

  3. 3

    Question 5

    The instructions say to answer Yes if a change from one generally accepted accounting principle to another during the year affected, or is expected to affect, income for financial statement purposes.

  4. 4

    Question 6

    Answer whether the corporation changed a method of accounting for tax purposes. The instructions note corporations generally file Form 3115, or a statement in lieu of it, to request such a change.

  5. 5

    Questions 7 to 9

    Answer Yes for owned VEBA trusts holding employee benefit funds, for an indirect cost allocation method that varied from the financial statement method, and for purchasing, handling and storage costs treated as mixed-service costs.

  6. 6

    Remaining questions

    Check Yes or No for questions 2, 3, 4a, 4b and 10 based on the corporation's activity during the tax year.

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Where it goes and what changed

Attach to Form 1120

The schedule prints "Attach to Form 1120." It is filed with the corporation's return, not on its own.

Consolidated groups

The parent corporation files one Schedule B for the entire group, according to the instructions.

Section 118 change

The instructions say that after December 22, 2017, contributions by any civic group or any governmental entity are not eligible for exclusion under section 118, except governmental contributions under a master development plan approved before that date.

Latest information

The schedule points to www.irs.gov/Form1120 for the latest information. The Paperwork Reduction Act Notice is in the Instructions for Form 1120.

Related forms

Who files Schedule B (Form 1120)?

  • Corporations filing Schedule M-3

    Form 1120 filers that file Schedule M-3 (Form 1120) are the general filers named in the instructions.

  • Exception: under $50 million in assets

    The instructions say filers required to file Schedule M-3 with less than $50 million in total assets at the end of the tax year are not required to file Schedule B.

  • Exception: voluntary M-3 filers

    Filers not required to file Schedule M-3 that file it voluntarily are also not required to file Schedule B, according to the instructions.

  • Consolidated groups

    The instructions say a parent corporation files one Schedule B for the entire group.

  • Not an individual form

    The schedule is filed by the corporation with its Form 1120 and identifies the filer by EIN.

The instructions say that, generally, filers of Form 1120 that file Schedule M-3 (Form 1120) complete and file Schedule B (Form 1120), with the exceptions below.

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Questions about Form 1120 Sch. B

Which form does Schedule B (Form 1120) attach to?

Form 1120. The schedule prints "Attach to Form 1120."

Does every Schedule M-3 filer file Schedule B?

No. The instructions exclude filers with less than $50 million in total assets at the end of the tax year and filers who file Schedule M-3 voluntarily.

How many Schedules B does a consolidated group file?

One. The instructions say the parent corporation files one Schedule B for the entire group.

What counts as a change in accounting principle?

The instructions define it as a change from one generally accepted accounting principle to another, as described in SFAS No. 154, Accounting Changes and Error Corrections.

Where are the instructions for Schedule B (Form 1120)?

On page 2 of the PDF. The schedule also points to www.irs.gov/Form1120 for the latest information.