Should you keep a spreadsheet on the differences between the AAA and retained earnings from year to year?

U.S. Business Taxpayers reporting income using IRS Form 1120S who like to drill down into the tax forms my team prepares usually tend to get a little freaky over the Accumulated Adjustment Account (AAA) reported on Schedule M-2, specifically why the entry doesn’t tie out to what their books and records show for retained earnings. Rightfully…

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