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Form 8916-A                          Supplemental Attachment to Schedule M-3
(Rev. November 2019)                                                                                             OMB No. 1545-0123
                                   ▶ 
Department of the Treasury            Attach to Schedule M-3 for Form 1065, 1120, 1120-L, 1120-PC, or 1120-S.
Internal Revenue Service                ▶  Go to www.irs.gov/Form1120 for the latest information.
Name of common parent                                                                            Employer identification number

Name of subsidiary                                                                               Employer identification number

Part I     Cost of Goods Sold
                                                            (a)            (b)                               (c)               (d) 
                   Cost of Goods Sold Items                 Expense per    Temporary              Permanent            Deduction perTax 
                                                           IncomeStatement Difference             Difference           Return

1    Amounts attributable to cost flow assumptions      .

2    Amounts attributable to:

a    Stock option expense .        .  . . . . .  .    . .

b    Other equity-based compensation.       . .  .    . .

c    Meals and entertainment .        . . . . .  .    . .

d    Parachute payments .          .  . . . . .  .    . .

e    Compensation with section 162(m) limitation .      .

f    Pension and profit sharing       . . . . .  .    . .

g    Other post-retirement benefits .     . . .  .    . .

h    Deferred compensation .          . . . . .  .    . .

i    Reserved .            . . . . .  . . . . .  .    . .  

j    Amortization .          . . . .  . . . . .  .    . .  

k    Depletion .           . . . . .  . . . . .  .    . .

l    Depreciation .          . . . .  . . . . .  .    . .  

m    Corporate-owned life insurance premiums .        . .

n    Other section 263A costs.        . . . . .  .    . .  

3    Inventory shrinkage accruals.      . . . .  .    . .

4    Excess inventory and obsolescence reserves  .      .  

5    Lower of cost or market write-downs .    .  .    . .

6    Other items with differences (attach statement)    .

7    Other items with no differences.     . . .  .    . .
8    Total cost of goods sold.  Add lines 1 through 7 in  
     columns a, b, c, and d. Enter totals on the 
     applicable Schedule M-3. See instructions .      . .
For Paperwork Reduction Act Notice, see instructions.                 Cat. No. 48657X                            Form 8916-A (Rev. 11-2019)

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Form 8916-A (Rev. 11-2019) Page 2
Part II Interest Income
(a) (b) (c) (d)
Interest Income Item Income (Loss) perIncome Temporary Permanent Income (Loss) per
Statement Difference Difference Tax Return
1 Tax-exempt interest
income
2 Interest income from hybrid
securities
3 Sale/lease interest income
4a Intercompany interest
income — From outside tax
affiliated group
4b Intercompany interest
income — From tax
affiliated group

5 Other interest income
6 Total interest income. Add
lines 1 through 5 in columns
a, b, c, and d. Enter total on
the applicable Schedule M-3.
See instructions.
Part III Interest Expense
(a) (b) (c) (d)
Interest Expense Item Expense per Income Temporary Permanent Deduction per TaxReturn
Statement Difference Difference
1 Interest expense from
hybrid securities
2 Lease/purchase interest
expense
3a Intercompany interest
expense — Paid to outside
tax affiliated group
3b Intercompany interest
expense — Paid to tax
affiliated group

4 Other interest expense
5 Total interest expense. Add
lines 1 through 4 in columns
a, b, c, and d. Enter total on
the applicable Schedule M-3.
See instructions.
Form 8916-A (Rev. 11-2019)

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Form 8916-A (Rev. 11-2019) Page 3

Section references are to the Internal Revenue Code unless Part I. Cost of Goods Sold
otherwise noted.
Line 1
Future Developments Report differences attributable to cost flow assumptions, for
For the latest information about developments related to example, differences between book and tax LIFO
Form 8916-A and its instructions, such as legislation computations. Generally, differences in the LIFO reserves for
enacted after they were published, go to book and tax purposes should be reported on this line.
www.irs.gov/Form1120. Line 2n
General Instructions Report differences attributable to section 263A. For example,
if book inventory costs do not equal section 471 inventory
Purpose of Form costs, report differences between section 471 inventory
Use Form 8916-A to provide a detailed schedule of the costs and section 263A inventory costs. This includes all
amounts reported on the applicable Schedule M-3 for cost cost of goods sold differences, not just differences
of goods sold, interest income, and interest expense. attributable to additional section 263A cost adjustments to
ending inventory. LIFO taxpayers using the simplified
Who Must File production method or the simplified resale method should
Generally, Form 8916-A must be filed for each separate report the amount of additional section 263A costs
entity required to file a Schedule M-3 for Form 1065, Form computed after LIFO computations. LIFO taxpayers not
1120, Form 1120-C, Form 1120-L, Form 1120-PC, or Form using a simplified section 263A method should report costs
1120-S. attributable to additional section 263A prior to performing
However, certain separate entities that (a) are required to LIFO computation. Differences due to purchasing, and
file a Schedule M-3 and have less than $50 million in total storage and handling costs, should generally be reported on
assets at the end of the tax year, or (b) are not required to line 2n (to the extent not already included in lines 2a through
file a Schedule M-3 and voluntarily file a Schedule M-3, are 2m). Report the additional section 263A cost adjustments to
not required to file Form 8916-A but may voluntarily do so. ending inventory on line 2n (and the reversal of the prior year
See the instructions for the applicable Schedule M-3 for ending inventory, if applicable).
each separate entity. Lines 4 and 5
Note. Schedule M-3 (Form 1120) mixed group filers, all If the taxpayer does not distinguish between obsolescence
Schedule M-3 (Form 1120-L) filers, and all Schedule M-3 and excess inventory reserves and lower of cost or market
(Form 1120-PC) filers must file Form 8916-A. write-downs in its general ledger, report all amounts relating
Consolidated groups. In the case of a consolidated tax to these reserves on line 4 for excess inventory and
group, a Form 8916-A must be filed as part of the Schedules obsolescence reserves.
M-3 prepared for the parent company, each subsidiary, the Line 6
eliminations Schedule M-3, and the consolidated Schedule Attach a statement that separately states and adequately
M-3. It is not required that the supporting detail for Form discloses the nature and amount of each expense reported
8916-A, Part I, line 6, be presented for the eliminations on this line. See the instructions for the applicable Schedule
Schedule M-3 or the consolidated Schedule M-3. M-3 for a definition of “separately stated and adequately
Mixed groups. In the case of a mixed group (as described in disclosed.” It is not required that the supporting detail for
the instructions for Schedule M-3 for Form 1120, Form Form 8916-A, Part I, line 6, be presented for the eliminations
1120-L, and Form 1120-PC), a Form 8916-A, if applicable, is Schedule M-3 or the consolidated Schedule M-3. Report
required at the sub-consolidated level and the sub- differences between book inventory costs and section 471
consolidated elimination level. inventory costs on this line.
How To File Line 7
Attach Form 8916-A to each applicable separate Schedule Report all other items with no differences on this line. For
M-3. example, if book inventory costs equal section 471 inventory
costs, this line should report total book inventory and section
Specific Instructions 471 inventory costs without regard to amounts reported on
lines 1 through 5.
Note. Any filer that completes Parts II and III of Schedule
M-3 (Form 1120) and Form 8916-A must complete all Line 8
columns, without exception. See the instructions for Parts II Line 8 should equal the amount reported on Schedule M-3
and III of the applicable 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.
See the instructions for the applicable Schedule M-3.

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Form 8916-A (Rev. 11-2019) Page 4

Part II. Interest Income Line 2
Line 1 Report on line 2, column (a), total interest expense from
periodic payments from transactions characterized as a
Report on line 1, column (a), tax-exempt interest income lease for financial accounting and as a purchase for tax
defined under section 103. Complete columns (b) and (c), as purposes. Report on line 2, column (d), total interest expense
applicable. from periodic payments from transactions characterized as a
Line 2 purchase for financial accounting and as a lease for tax
Report on line 2, column (a), the total amount of interest purposes. Complete columns (b) and (c), as applicable. See
income included on Schedule M-3, Part I, line 11, from the instructions for Schedule M-3, Part III, line 34 (Form
hybrid securities characterized as debt for financial 1120), line 35 (Forms 1120-L and 1120-PC), or line 28
accounting and as equity for tax purposes. Report on line 2, (Forms 1120-S and 1065).
column (d), the total amount of interest income from hybrid Line 3a
securities characterized as equity for financial accounting Report on line 3a total intercompany interest expense
and as debt for tax purposes. Complete columns (b) and (c), included on Schedule M-3, Part I, line 4, but not included on
as applicable. Report interest income from a debt that is Schedule M-3, Part I, line 11. Report hybrid security interest
both a hybrid debt and a related party debt on line 2 and not expense or deduction on line 1 and purchase/lease interest
on line 4a or 4b. expense or deduction on line 2 but not on line 3a.
Line 3 Line 3b
Report on line 3, column (a), the total interest income from Report on line 3b total intercompany interest expense to an
periodic payments from transactions characterized as a entity within the tax affiliated group. Report hybrid security
lease for financial accounting and as a sale for tax purposes. interest expense or deduction on line 1 and purchase/lease
Report on line 3, column (d), the total interest income from interest expense or deduction on line 2 but not on line 3b.
periodic payments from transactions characterized as a sale
for financial accounting and as a lease for tax purposes. Note. Report interest expense from a debt that is botha
Complete columns (b) and (c), as applicable. See the hybrid debt and a related party debt on line 1 but noton line
instructions for sale versus lease for Schedule M-3, Part II, 3a or 3b.
line 18 (Forms 1120 and 1120-L), line 17 (Form 1120-PC), or Line 4
line 16 (Forms 1120-S and 1065). Report on line 4 total interest expense not required to be
Line 4a reported on lines 1 through 3b.
Report on line 4a total intercompany interest income from an Line 5
entity included on Schedule M-3, Part I, line 4, but not Line 5 must equal the amounts for all columns reported on
included on Schedule M-3, Part I, line 11. Report hybrid Schedule M-3 (Form 1120), Part III, line 8; Schedule M-3
security interest income on line 2 and sale/lease interest (Forms 1120-PC and 1120-L), Part III, line 36; Schedule M-3
income on line 3 but not on line 4a. (Form 1065), Part III, line 27; or Schedule M-3 (Form 1120-S),
Line 4b Part III, line 26. See the instructions for the applicable
Report on line 4b total intercompany interest income from an Schedule M-3.
entity within the tax affiliated group. Report hybrid security Paperwork Reduction Act Notice. We ask forthe
interest income on line 2 and sale/lease interest income on information on this form to carry out the InternalRevenue
line 3 but not on line 4b. laws of the United States. You are required togive us the
Note. Report interest income from a debt that is both a information. We need it to ensure that youare complying
hybrid debt and a related party debt on line 2 but noton line with these laws and to allow us to figureand collect the right
4a or 4b. amount of tax.
Line 5 You are not required to provide the information requested
Report on line 5 total interest income not required to be on a form that is subject to the Paperwork Reduction Act
reported on lines 1 through 4b. unless the form displays a valid OMB control number. Books
Line 6 or records relating to a form or its instructions must be
retained as long as their contents may become material in
Line 6 must equal the amount for all columns reported on the administration of any Internal Revenue law. Generally,
Schedule M-3, Part II, line 13 (Forms 1120, 1120-L, and tax returns and return information are confidential, as
1120-PC) or line 11 (Forms 1120-S and 1065). See the required by section 6103.
instructions for the applicable Schedule M-3.
The time needed to complete and file this form will vary
Part III. Interest Expense depending on individual circumstances. The estimated
Line 1 burden for business taxpayers filing this form is approved
under OMB control number 1545-0123 and is included in the
Report on line 1, column (a), total interest expense from estimates shown in the instructions for their business income
hybrid securities characterized as debt for financial tax return.
accounting and as equity for tax purposes. Report on line 1,
column (d), total interest expense from hybrid securities If you have comments concerning the accuracy of these
characterized as equity for financial accounting and as debt time estimates or suggestions for making this form simpler,
for tax purposes. Complete columns (b) and (c), as we would be happy to hear from you. See the instructions
applicable. Report interest expense from a debt that is both for the tax return with which this form is filed.
a hybrid debt and a related party debt on line 1 but not on
line 3a or 3b.

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