8916-A

Supplemental Attachment to Schedule M-3

Agency
IRS
Revision
Rev. November 2019
Fillable fields
140
Pages
4
Official source
IRS form page
Checked
October 21, 2026
Fill 8916-A online
Page 1 of form 8916-A

Form 8916-A: Supplemental Attachment to Schedule M-3

Form 8916-A is a supplemental attachment to Schedule M-3. The form says it is used to provide a detailed schedule of the amounts reported on the applicable Schedule M-3 for cost of goods sold, interest income and interest expense. It is attached to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC or 1120-S.

Each of its three parts has four columns: the amount per income statement, the temporary difference, the permanent difference and the amount per tax return. The totals of each part are entered on the applicable Schedule M-3.

The instructions are printed on pages 3 and 4 of the form. You can fill it out free in your browser on this page and download the result without an account.

What's on Form 8916-A

Header

Name and employer identification number of the common parent and of the subsidiary.

Part I: Cost of Goods Sold

Lines 1 to 8: cost flow assumptions, items such as stock option expense, depreciation and other section 263A costs on line 2, inventory shrinkage, reserves, lower of cost or market write-downs, other items and the total.

Part II: Interest Income

Lines 1 to 6: tax-exempt interest, hybrid securities, sale/lease interest, intercompany interest from outside and from within the tax affiliated group, other interest and the total.

Part III: Interest Expense

Lines 1 to 5: hybrid securities, lease/purchase interest, intercompany interest paid to outside and to the tax affiliated group, other interest and the total.

Columns (a) to (d)

Each line runs across the amount per income statement, the temporary difference, the permanent difference and the amount per tax return.

How to fill out Form 8916-A

  1. 1

    Part I, line 1

    The instructions say to report differences attributable to cost flow assumptions, for example differences between book and tax LIFO computations.

  2. 2

    Part I, lines 2n, 6 and 7

    Line 2n holds differences attributable to section 263A. Line 6 holds other items with differences and needs an attached statement. Line 7 holds other items with no differences.

  3. 3

    Part I, line 8

    Add lines 1 through 7 in each column. The instructions say line 8 should equal Schedule M-3 (Form 1120), Part II, line 17; Schedule M-3 (Form 1120-S), Part II, line 15; or Schedule M-3 (Form 1065), Part II, line 15.

  4. 4

    Part II

    Report each type of interest income on its own line. The instructions say interest income from a debt that is both a hybrid debt and a related party debt goes on line 2, not line 4a or 4b. Line 6 totals the part.

  5. 5

    Part III

    Report each type of interest expense on its own line. The instructions say interest expense from a debt that is both hybrid and related party goes on line 1, not line 3a or 3b. Line 5 totals the part.

  6. 6

    All columns

    The instructions say any filer that completes Parts II and III of Schedule M-3 (Form 1120) and Form 8916-A completes all columns, without exception.

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How it is filed and what it ties to

How to file

The instructions say to attach Form 8916-A to each applicable separate Schedule M-3.

Ties to Schedule M-3

Part I, line 8, Part II, line 6 and Part III, line 5 are entered on the applicable Schedule M-3. The instructions name the matching Schedule M-3 line for each part.

Line 6 statement

The statement separately states and adequately discloses the nature and amount of each expense. The instructions say this detail is not required for the eliminations Schedule M-3 or the consolidated Schedule M-3.

Mixed groups

The instructions say a mixed group files Form 8916-A, if applicable, at the sub-consolidated level and the sub-consolidated elimination level.

Latest information

The form points to www.irs.gov/Form1120 for developments such as legislation enacted after it was published.

Related forms

Who files Form 8916-A?

  • Schedule M-3 filers

    The instructions say Form 8916-A generally is filed for each separate entity required to file a Schedule M-3 for Form 1065, Form 1120, Form 1120-C, Form 1120-L, Form 1120-PC or Form 1120-S.

  • Smaller and voluntary filers

    The instructions say entities required to file a Schedule M-3 with less than $50 million in total assets at the end of the tax year, and entities filing a Schedule M-3 voluntarily, are not required to file it but may voluntarily do so.

  • Mixed groups and insurance companies

    The instructions say Schedule M-3 (Form 1120) mixed group filers, all Schedule M-3 (Form 1120-L) filers and all Schedule M-3 (Form 1120-PC) filers must file Form 8916-A.

  • Consolidated groups

    The instructions say a Form 8916-A is filed as part of the Schedules M-3 prepared for the parent company, each subsidiary, the eliminations Schedule M-3 and the consolidated Schedule M-3.

The form is completed by business entities that file a Schedule M-3. The instructions describe these filers.

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Questions about Form 8916-A

Which returns use Form 8916-A?

The form says it is attached to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC or 1120-S. The instructions also list Form 1120-C.

Is Form 8916-A required for every Schedule M-3 filer?

No. The instructions say entities with less than $50 million in total assets at the end of the tax year, and voluntary Schedule M-3 filers, are not required to file it but may do so.

Where is Form 8916-A attached?

The instructions say to attach it to each applicable separate Schedule M-3, not directly to the return.

What do the four columns mean?

Column (a) is the amount per income statement, (b) the temporary difference, (c) the permanent difference and (d) the amount per tax return.

Where do the totals go?

The form says to enter the totals of each part on the applicable Schedule M-3. The instructions name the matching line for Forms 1120, 1120-S, 1065, 1120-L and 1120-PC.