Instructions for Form 1120-PM3

This IRS instruction booklet (Rev. Jan 2024) explains how U.S. property and casualty insurance companies with $10 million or more in total assets complete Schedule M-3 (Form 1120-PC). It describes who must file, consolidated and mixed-group rules, and how to reconcile statutory/financial statement net income to taxable income reported on Form 1120-PC. It provides detailed guidance for Parts I–III, including reporting temporary vs. permanent differences, intercompany eliminations, minority interest, partnership items, reportable transactions, depreciation, and section 174 research cost amortization. The booklet itself is not signed or filled; it supports preparing the actual tax schedules.