Massachusetts Net Income Reconciliation (OBSOLETE)

Net Income Reconciliation (OBSOLETE)
sch. NIR
2014
Massachusetts

Schedule NIR
Net Income Reconciliation
Corporation name (enter name of principal reporting corporation if filing 355U)

Federal Identification number

Name of corporation which submits U.S. Schedule M-3

Federal Identification number

Department of
Revenue

General Information
11 Did the corporation file SEC Form 10-K for this tax period?  Yes  No.  If Yes, use the income as reported on SEC Form 10-K for this reconciliation.
12 If the corporation did not file SEC Form 10-K, were the financial statements for this tax period audited?  Yes  No.  If Yes, use the income from the
audited income statement for this reconciliation.
13 If the corporation did not file SEC Form 10-K and its financial statements were not audited, was an income statement prepared for this period? 
Yes  No.  If Yes, use the net income from the unaudited income statement for this reconciliation.If No, use the income from the corporation’s books.

Consolidated Worldwide Income
14 Enter the corporation’s total worldwide income (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
05

Non-includable
foreign entity name

a. Federal
Identification number

b. Entity
type

c. Files in
d. Category
Massachusetts
type

e. Adjustment to
income

06

Non-includable
U.S. entity name

a. Federal
Identification number

b. Entity
type

c. Files in
d. Category
Massachusetts
type

e. Adjustment to
income

07

Other includable
entity name

a. Federal
Identification number

b. Entity
type

c. Files in
d. Category
Massachusetts
type

e. Adjustment to
income

18
19
10
11
12
13

Adjustment to eliminations between includable and non-includible entities (from U.S. Schedule M-3, part 1, line 8). . . 8
Adjustment to reconcile the income statement for the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Intercompany dividend adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Other statutory accounting adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Other adjustments not required by statutory accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Book income from federal return as filed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Schedule NIR Instructions
General Information
What Is the Net Income Reconciliation?
Schedule Net Income Reconciliation (NIR) reconciles income reported
to shareholders with the income reported on the taxpayer’s consolidated U.S. tax return and is similar to U.S. Schedule M-3, Part 1.
Taxpayers must file Schedule NIR if required to file a U.S. Schedule M-3
with their U.S. tax return, including corporations that are part of a consolidated return that includes U.S. Schedule M-3. Corporations included in a
Massachusetts combined group submit Schedule NIR with Form 355U.
Multiple Schedules NIR are required only where a Massachusetts combined group includes corporations that separately submit U.S. Schedules M-3 with separate U.S. tax returns.

Line Instructions
Registration Section. Enter the name and Federal Identification number
of the entity submitting Schedule NIR on the top line. On the 2nd line,
enter the name and Federal Identification number as it appears on U.S.
Schedule M-3 as filed. This may be a corporation that does not have a
requirement to file a return in Massachusetts. If applicable, enter the
same information which was entered in line 1. Do not leave line 2 blank.

Line 5a. Enter the entity’s Federal Identification number. If the entity
does not have one, enter zeros.
Line 5b. Enter the code corresponding to the type of entity for U.S. tax
purposes using the entity type chart.
Line 5c. If the entity files an income tax return of any kind in Massachusetts, enter “Y”. If no return is filed in Massachusetts, enter “N.”
Line 5d. Enter “1” if this is a non-includible foreign entity with net income greater than zero. Enter “2” if this is a non-includible foreign entity
with net income of zero or less than zero.
Line 5e. Enter, as a negative amount, the amount of income excluded
from the U.S. return due to the exclusion of this entity. Losses excluded
from the U.S. return are entered as positive amounts. The total of all
entries on Schedule NIR line 5e should equal the total of the U.S.
Schedule M-3, part 1, lines 5a and 5b.
Line 6. Enter individually the name of each separate domestic entity
whose income is included in the worldwide income shown on line 4 but
not included on the federal tax return. These will be the same entities
identified in the required schedules reconciling the entries on U.S.
Schedule M-3, part 1, lines 6a and 6b.

Lines 1 through 3. Complete lines 1 through 3 using information from
U.S. Schedule M-3, Part 1.

Line 6a. Enter the entity’s Federal Identification number. If the entity
does not have one, enter zeros.

Line 4. Enter in line 4 the consolidated worldwide income exactly as
shown on U.S. Schedule M-3, Part 1, line 4.

Line 6b. Enter the code corresponding to the type of entity for federal
tax purposes. Use the same entity type codes provided for line 5b.

Lines 5 through 7. List individually the different entities, included or excluded in converting the consolidated worldwide income on line 4 to the
net income per income statement figure reported on U.S. Schedule M3, Part 1, line 11. Each entity must be identified by name, Federal Identification number (if applicable), and entity type using the following
table:

Line 6c. If the entity files a return in Massachusetts, enter “Y.” If not,
enter “N.”

Entity Type Codes for Column b
01: Corporations exempt from taxation under section 501 and not included in a U.S. consolidated income tax return.
02: Insurance companies subject to tax under section 801 and not included in a U.S. consolidated income tax return.
03: Foreign corporations not included in a U.S. consolidated income tax
return.
04: Corporations with respect to which and election under section 936
(relating to possession tax credit) is in effect for the taxable year.
05: Regulated Investment Company subject to tax under subchapter M
06: Real Estate Investment Trust subject to tax under subchapter M
07: A DISC as defined in section 992(a)(1)).
21: A U.S. domestic corporation, whether included or excluded in the
U.S. return, where code numbers 01 through 07 do not apply.
22: A U.S. domestic limited liability company, whether included or excluded in the U.S. return, where code numbers 01 through 07 do not
apply.
23: A U.S. domestic entity which is not a corporation or a limited liability
company, whether included or excluded in the U.S. return, where code
numbers 01 through 07 do not apply.
31: A foreign entity, whether included or excluded in the U.S. return,
where code numbers 01 through 07 do not apply.
Line 5. Enter individually the name of each separate foreign entity
whose income is included in the worldwide income shown on line 4 but
not included on the U.S. tax return. These will be the same entities
identified in the required schedules reconciling the entries on U.S.
Schedule M-3, Part 1, lines 5a and 5b.

Line 6d. Enter “3” if this is a non-includible domestic entity with net income greater than zero. Enter “4” if this is a non-includible domestic entity with net income of zero or less than zero.
Line 6e. Enter, as a negative amount, the amount of income excluded
from the U.S. return due to the exclusion of this entity. Losses excluded
from the U.S. return are entered as positive amounts. The total of all
entries on Schedule NIR line 6e should equal the total of the U.S.
Schedule M-3, Part 1, lines 6a and 6b.
Line 7. Enter individually the names of each separate entity whose income or loss is not included in the worldwide income shown on line 4
but which is included on the federal tax return. These will be the same
entities identified in the required schedules reconciling the entries on
U.S. Schedule M-3. Part 1, lines 7a and 7b.
Line 7a. Enter the entity’s Federal Identification number. If the entity
does not have one, enter zeros.
Line 7b. Enter the code corresponding to the type of entity for U.S. tax
purposes. Use the same entity type codes provided above.
Line 7c. No entries should be entered in this column.
Line 7d. Enter “5” if this is an “other includible entity” with net income
greater than zero. Enter “6” if this is an “other includible entity” with net
income of zero or less than zero.
Line 7e. Enter, as a positive amount, the amount of income attributable
to the entity being added to worldwide consolidated income for the tax
return. Enter all losses as negative numbers. This differs from the federal instructions.
Line 8. Enter the total amount of the adjustment to eliminations of transactions between includible entities and non-includible entities. This is
the amount shown on U.S. Schedule M-3, Part 1, line 8.
Line 9. Enter the total amount of any adjustment to reconcile the income statement period to the tax year. This is the amount shown on
U.S. Schedule M-3, Part 1, line 9.

Line 10. Enter the total amount of any intercompany dividend adjustments required to reconcile worldwide income as shown in line 4 to line
13. This is the amount shown on U.S. Schedule M-3, Part 1, line 10a.
Line 11. Enter the total amount of any statutory accounting adjustments
required to reconcile worldwide income as shown in line 4 to line 13.
This is the amount shown on U.S. Schedule M-3, Part 1, line 10b.
Line 12. Enter the total amount of any other adjustments to reconcile
worldwide income as shown in line 4 to line 13. This is the amount
shown on U.S. Schedule M-3, Part 1, line 10c.
Line 13. Enter the net income or loss per income statement of includible
corporations. Combine lines 4 through 12 (use column e amounts for
lines 5, 6 and 7). The total must match final result of schedule M-3, Part
1 as filed with the U.S. tax return for the year (Schedule M-3, Part 1,
line 11 for corporations filing U.S. Form 1120).