Form 1120 FSC Schedule P, Fill in Version

Instructions and help about Form 1120 FSC Schedule P, Fill in Version

hello and welcome to this session in which we will discuss schedule M1 on 4 11 20. C corporation what is the overall idea what's the big idea of schedule M1 on Form 1120 well here's what's gonna happen the government they want to reconcile your Gap income your generally accepted accounting principal income to your tax income so here's what the IRS is looking for you're not aware of this you we use two different sets of rules one for gaap for financial reporting and one for IRS for tax purposes so we use two separate rules now what's beneficial what would be helpful for students here if they already took Intermediate Accounting and specifically they took the chapter accounting for income taxes why because in that chapter we account for the third taxed asset the third tax liabilities well the concept is the same there are temporary or permanent differences between Gap income and IRS income and GAP expenses and IRS expenses that difference in timing will need to be accounted for so schedu