Accumulated Adjustment Accounts and the Subchapter S Corp: IRS Form 1120-S Schedule M-3 Column (a)

Now that the corporate tax extension deadline is past and we all prepared, signed and filed our 2012 1120-S IRS forms (yeah right!) I write to report some of my codified thoughts on Schedule M-3, Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’ Undistributed Taxable Income Previously Taxed. Or in tax speak the AAA. Generally…