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Electronic organizer data entry for insurance returns

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If the insurance company is not required to file an Annual Statement, they can enter their data directly into the 1120-L or 1120-PC Electronic Organizer. The data source method selected should be Electronic Organizer, not Annual Statement.
note
You can't enter data directly into the Annual Statement Organizer pages. All data entry should be made in the 1120-L or 1120-PC Electronic Organizer.
Schedule M-3
There are two ways to complete the data entry for Schedule M-3 in the Electronic Organizer. The first method, DIF import files, is preferred because it saves you the most time.
  • DIF import files are used to import data for all three parts of Schedule M-3.
  • Part I of Schedule M-3 is used only for single company or top consolidated returns.
  • DIF import files are available for 1120-L, 1120-PC, and 1120 separate returns, including Part I for top consolidations.
  • Use the Schedule M-3 DIF/KAT files in the
    Data imports and exports
     table on the product landing page to import the data.
Enter Schedule M-3 data directly into the electronic Organizer in the M-3 Organizer fields.
  • 1120L: In Organizer, select
    Life Electronic Organizer Page 7
    , then
    Schedule M-3
    .
  • 1120PC: In Organizer, select
    PC Electronic Organizer Page 8
    , then
    Schedule M-3
    .
Statutory-to-Tax Adjustments
Because tax adjustment balances are entered directly into the Organizer, there are no statutory-to-tax adjustments. Statutory tax adjustments are only used for Annual Statement customers.
Adjustments and Reclasses
Adjustments, which are made either automatically or entered directly in the Organizer while preparing the return, are one-sided only. However, reclasses are two-sided entities with both a debit and credit amount entered. An example of a reclass adjustment occurs when an amount is included in Other Income when it should have been included in Interest Expense.
You can reconcile a balanced return back to the statutory calculations through a summary of reclasses and tax adjustments. This summary is an important part of the supporting documentation of the insurance return.
  1. Select Tax Forms,
    Federal
    120-PC Corporate Income Tax Return
    1120-PC Pg 1-8
    1120-PC, Page 2 tab
    .
  2. Select the link on line 13 to view the yellow detail.
    Select the link (blue turn-down arrow) in the Other Income field on the tax return.
    Find the Other Income Reclassed Items or Other Income Tax Adjustments, which are shown on the yellow detail image. Select the
    Other Income
     tab to view a screen where you can enter adjustments.
Reclasses In Balance
  1. Select the Tax Forms tab, then
    Federal
    1120-PC Corporate Income Tax Return
    Tax Summary
    Tax to A/S Reconciliation tab
    .
  2. Reclass items need to be balanced entries to keep a return in balance. You can verify that the return is balanced by going to the
    Total Reclasses per reconciliation
     field.
  3. You can select the field and use the down arrow link to open the
    Summary of Statutory Reclassed Items
    . If the return is in balance, a message stating this appears at the bottom of the screen.

This article applies to:

  • Product: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • Subject: insurance

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