Bridging the Reporting Gap: A Proposal for More Informative Reconciling of Book and Tax Income
Name
4289-03.pdf
Size
166.4 KB
Format
Adobe PDF
Checksum (MD5)
9cbf0ea2172a1550f152e1aec1465451
Author(s)
Plesko, George
Mills, Lillian
Date Issued
March 14, 2003
Series/Report no.
MIT Sloan School of Management Working Paper;4289-03
Abstract
In this paper we review the history and purpose of the corporation income tax return's
Schedule M-1 in light of recent attention to corporate reporting issues. Although the
traditional role for the schedule has been to assist the audit process, the reconciliation of
book to tax accounting numbers also provides information that is useful to tax analysts. We
find the existing tax return Schedule M-1, largely unchanged since its introduction in 1963,
provides insufficient detail for complex reconciliation issues. We propose a modified M-
1 to achieve better reconciliation, and discuss the advantages, and disadvantages, of public
disclosure of such data
Persistent DSpace Link
