A corporation is required to report differences between book and taxable income on either Schedule M-1 or Schedule M-3 of the corporate income tax return.

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This statement is true. Corporations are required to report differences between book (financial accounting) and taxable income on either Schedule M-1 or Schedule M-3 of the corporate income tax return. Schedule M-1 is required for all corporations, while Schedule M-3 is required for certain larger corporations. These schedules reconcile the differences between book and taxable income, which can arise due to differences in accounting methods or timing differences in recognizing income and deductions.

A Corporation Is Required to Report Differences Between Book and Taxable