Our C corporation had under $250,000 of receipts and assets. Can we really skip Schedule L and M-1, or is there another catch?
I run a small Delaware C corporation owned from Germany. We had about $172,000 of receipts and finished the year with around $141,000 of total assets. The return itself is otherwise straightforward and our bookkeeper keeps telling me the balance-sheet and reconciliation schedules can be omitted.
I am fine with that if the IRS truly allows it, but I want to understand the exact conditions. If there is another Schedule K question or asset test involved, I do not want to skip those schedules and create a mismatch just because we are small.
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