Balance Sheet, M1 & M2

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  • Joe Her
    Junior Member
    • Sep 2009
    • 1

    #1

    Balance Sheet, M1 & M2

    What is the threshold of small corp. not having to complete the balance sheet, M1 & M2?

    Were we incorrect by leaving the balance sheet, M1 & M2 blank? Must we file an amended return?
  • ChEAr$
    Senior Member
    • Dec 2005
    • 3872

    #2
    Originally posted by Joe Her
    What is the threshold of small corp. not having to complete the balance sheet, M1 & M2?

    Were we incorrect by leaving the balance sheet, M1 & M2 blank? Must we file an amended return?
    Look at the questions asked on page 2 I think it is for your answer.

    And when all else fails, read the instructions.

    NOT meaning to be harsh here, but understanding the instructions for the forms is basic to our profession.
    You can't depend on software for all the answers.
    ChEAr$,
    Harlan Lunsford, EA n LA

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    • Lion
      Senior Member
      • Jun 2005
      • 4699

      #3
      Maybe

      Don't have it memorized, but it's in the directions. Even if you don't file the balance sheet, don't you want to prepare it? You need to see where they might be out of balance. And, when the company closes, you'll wish you had it.

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      • Snaggletooth
        Senior Member
        • Jun 2005
        • 3314

        #4
        Great Names

        Originally posted by Joe Her
        What is the threshold of small corp. not having to complete the balance sheet, M1 & M2?

        Were we incorrect by leaving the balance sheet, M1 & M2 blank? Must we file an amended return?
        Any kin to Ben Hur? Great movie!

        Welcome to the board, where we will try to answer tax questions and have a bunch of fun too.

        Most M-1s and M-2s are blank, unless they are sufficiently large. Prior C-corp earnings may not even exist.

        Comment

        • S T
          Senior Member
          • Jun 2005
          • 5053

          #5
          Balance Sheet

          1120S instructions on page 35 provide you with the information on when to complete the M-1 and M2

          1120 instructions on page 20 provide you with the information when to complete the M-1 and M-2

          Then you can also refer to the TB Small Business Edition at SB2 and SB3

          As prior posters suggested, it is wise to complete a balance sheet no matter the requirement to submit with tax return, it is the only way to keep your accounting in balance and report income/expenses and distributions and basis correctly.

          Only you based on the information of your taxpayer can determine whether or not an Amended Return needs to be filed. (after you have reviewed the filing requirements)

          Welcome to the Board,

          Sandy

          Comment

          • JG EA
            Senior Member
            • Jul 2005
            • 2176

            #6
            And if you do not need or want to put the balance sheet on the completed return - I do the return with it, print copies for me and for the client (with a "not filed" note) and then click the button that I do not want it with the actual return.
            JG

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