REC: Reconciliation (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota’s 2025 REC, Reconciliation, is a schedule used to reconcile income on federal consolidated returns with income reported on M4I, line 1a. It lists federal taxable income before net operating loss and special deductions, accounts for companies included in or excluded from
Who files this form
The 2025 Minnesota Schedule REC is used to reconcile income reported on federal consolidated returns with income reported on M4I, line 1a.
What you'll need
Have these records and details available:
- Federal consolidated returns, including federal Form 1120, line 28, which shows taxable income before the net operating loss deduction and special deductions.
- Any other federal returns for companies included in the unitary business.
- Names, FEINs, and Minnesota Tax IDs for the corporations listed on the schedule.
- The amount reported on M4I, line 1a.
- An explanation to attach for any company included in the federal consolidated returns in Part 1 but excluded from the unitary business.
- An explanation of each component of any difference reported on line 7.
Common mistakes
- Do not enter amounts with cents. The form requires you to round amounts to the nearest whole dollar.
Questions people ask
What goes in Part 1?
List the parent corporations from your federal consolidated returns and their total federal taxable income from Form 1120, line 28. Total these amounts on line 1.
What goes in Part 2?
List companies included in the unitary business from federal returns not listed in Part 1. Total their federal taxable income on line 2, then add lines 1 and 2 on line 3.
How do I report companies excluded from the unitary business?
In Part 3, list companies included in the federal consolidated returns in Part 1 that are not included in the unitary business. Enter their portion of Form 1120, line 28, and attach an explanation for the exclusion. Total these amounts on line 4.
How do I calculate the reconciliation difference?
Subtract line 4 from line 3 and enter the result on line 5. Enter the amount from M4I, line 1a, on line 6. Report the difference between lines 5 and 6 on line 7 and explain each component amount.