1120-US: Schedules M-1 and M-2 not calculating (FAQ)

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Question

Why isn't UltraTax CS automatically calculating Schedules M-1 and M-2 for C Corporations and Schedule M-1 for S Corporations?

Answer

UltraTax CS does not calculate Schedules M-1 and M-2 for C Corporations or Cooperative Associations and Schedule M-1 for S Corporations if total receipts for the tax year and the year-end total assets are less than $250,000. If you want these schedules to calculate when assets are less than $250,000, mark the Complete Schedule M-1 and C Corporation Schedule M-2 when receipts and assets are less than $250,000 checkbox in the Setup > 1120 Corporation > Federal tab > Other Return Options > Return Presentation tab. Note that this option applies to all 1120, 1120-C, and 1120S clients; however, the threshold for 1120-F, 1120-PC, and 1120-REIT filers is $25,000 instead of $250,000.

Notes

  • Schedule M-1 is also not completed for C Corporations, Cooperative Associations, Foreign Corporations, Property and Casualty Insurance Companies, or S Corporations when total assets are $10 million or greater and Schedule M-3 is required in lieu of Schedule M-1.
  • To set this option on a return-by-return basis for C Corporations, mark the Complete Schedules M-1 and M-2 when not required field in Screen Mc. This field is disabled if the respective checkbox in the Setup > 1120 Corporation > Federal tab > Other Return Options > Return Presentation tab is already marked.
  • To set this option on a return-by-return basis for S Corporations, mark the Complete Schedule M-1 when not required field in Screen Ms. This field is disabled if the respective checkbox in the Setup > 1120 Corporation > Federal tab > Other Return Options > Return Presentation tab is already marked.

Related topic: 1120 frequently asked questions

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