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Schedule M-3: The IRS introduced two new line items to Part III of the 2010 Form 1120 Schedule M-3, Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More, one of which is for R&E expenditures.
The IRS posted on its Frequently Asked Questions (FAQs) for Form 1120 Schedule M-3 page (http://tinyurl.