Federal Reconciliation of Schedule M-3 Taxable Income with Tax Return Taxable Income for Mixed Groups

Reconciliation of Schedule M-3 Taxable Income with Tax Return Taxable Income for Mixed Groups
Form 8916 (Rev. October 2020)
Form

8916

(Rev. October 2020)
Department of the Treasury
Internal Revenue Service

Reconciliation of Schedule M-3 Taxable Income With
Tax Return Taxable Income for Mixed Groups
▶

Employer identification number

Name(s) as shown on return

Enter total tax reconciliation amount from the applicable line of Schedule M-3.
See instructions . . . . . . . . . . . . . . . . . . . . .

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1

2a Life/non-life loss limitation amount . . . . . . . . . . . . . .
b Phased inclusion of balance of policyholders surplus account (Form 1120-L,
page 1, line 24) . . . . . . . . . . . . . . . . . . . . .
c

2a
2b

(1) Non-life capital loss limitation .

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2c(1)

(2) Life capital loss limitation

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2c(2)

d (1) Non-life charitable deduction limitation .

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2d(1)

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2d(2)

(1) Non-life dual consolidated loss amount disallowed .

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2e(1)

(2) Life dual consolidated loss amount disallowed

2e(2)

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(2) Life charitable deduction limitation
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3

Combine lines 1 through 2e(2) .

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4a

(1) 1120-PC net operating loss deduction

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4a(1)

(2) 1120-L net operating loss deduction .

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4a(2)

(3) 1120 net operating loss deduction

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4a(3)

b (1) Non-life dividends received deduction

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4b(1)

(2) Life dividends received deduction

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4b(2)

(1) Non-life capital loss carryforward used .

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4c(1)

(2) Life capital loss carryforward used

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4c(2)

d (1) Non-life charitable deduction carryforward used .

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4d(1)
4d(2)

c

OMB No. 1545-0123

Attach to Schedule M-3 for Forms 1120, 1120-L, or 1120-PC.
▶ Go to www.irs.gov/Form8916 for the latest information.

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3

(2) Life charitable deduction carryforward used

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5

Add lines 4a(1) through 4d(2)

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5

6

Subtract line 5 from line 3

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6

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Other adjustments to reconcile to taxable income on tax return (attach schedule) . . . . . . .
Total. Combine lines 6 and 7. This amount must equal the amount reported on the “Taxable income”
line of the consolidated Form 1120, Form 1120-L, or Form 1120-PC. See instructions

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For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37727E

7
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Form 8916 (Rev. 10-2020)

Form 8916 (Rev. 10-2020)

Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to Form
8916 and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/Form8916.

General Instructions
Purpose of Form
Use Form 8916 to reconcile Schedule M-3 taxable income to
tax return taxable income for a mixed group, which is a
consolidated tax group which uses two or more of the following
tax return forms: Form 1120, 1120-L, or 1120-PC. A mixed
group is a consolidated tax group that (1) includes both a
corporation that is an insurance company, and a corporation
that is not an insurance company, (2) includes both a life
insurance company and a property and casualty insurance
company, or (3) includes a life insurance company, a property
and casualty insurance company, and a corporation that is not
an insurance company.

Who Must File
Form 8916 must be filed by a mixed group consisting of filers of
Form 1120, 1120-L, or 1120-PC that is required to file Schedule
M-3.

How To File
Attach Form 8916 to the consolidated Schedule M-3. Taxpayers
must summarize the taxpayer tax return taxable income
calculation workpapers on Form 8916 and retain those
workpapers. The taxable income calculation workpapers need
not be submitted with the Form 8916.

Specific Instructions
Note: All line references to Form 1120-L, Form 1120-PC, and
Form 1120 are to the 2020 forms.
Line 1. Schedule M-3 tax reconciliation amount. The amount
on line 1 must equal the tax reconciliation amount from the
applicable line of Schedule M-3. For example, this amount was
reported on Part II, line 30, column (d), of the Schedule M-3 for
Form 1120 (Rev. December 2019), or the 2020 Schedule M-3 for
Form 1120-L or 1120-PC.

Page 2

Line 2a. Life/non-life loss limitation amount. Enter any life/
non-life loss limitation amount from the supporting workpapers.
See section 1503(c).
Line 4a. Net operating loss (NOL) deduction. Enter any NOL
deduction from supporting statements for each entity type
(Form 1120, 1120-L, and 1120-PC). For tax years beginning in
2020, see section 172(a)(1) as amended by section 2303 of P.L.
116-136 (the CARES Act). Also, see section 172(b)(1)(D) and
Rev. Proc. 2020-24 for special rules for losses arising in tax
years 2018, 2019, and 2020.
For tax years beginning after 2020, see section 172(a)(2) as
amended by section 2303 of the CARES Act. See section 172
for more information, including special rules for insurance
companies.
Line 7. Other adjustments to reconcile to taxable income on
tax return. Enter on line 7 any other adjustments necessary to
reconcile to taxable income reported on the consolidated
income tax return from the supporting workpapers and attach a
short explanation of the adjustment.
Line 8. Total. The amount on line 8 must equal the “Taxable
income” line of the applicable consolidated income tax return.
For example, see the 2020 Form 1120, page 1, line 30; 2020
Form 1120-L, page 1, line 25; or 2020 Form 1120-PC, Schedule
A, line 37.
Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the United
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to ensure that you are complying with these laws and to allow
us to figure and collect the right amount of tax.
You are not required to provide the information requested on
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records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for business taxpayers filing this form is approved under OMB
control number 1545-0123.
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would
be happy to hear from you. See the instructions for the tax
return with which this form is filed.