Form 1120-S is the annual tax return for businesses that are registered as S corporations. It is used to report income, gains, losses, credits, deductions, and other information to the IRS each year, and must be filed by the 15th day of the 3rd month after the corporation’s tax year.
What is Form 1120S?
Form 1120-S is the IRS tax form used by businesses that have elected to be treated as an S Corporation, allowing them to avoid double taxation. It’s used to report income, losses, deductions, and credits, as well as other information pertaining to the S Corporation. This form must be accompanied by Schedule K-1 which details each individual shareholder and the amount of profit and loss allocated to them. The form is typically due to the IRS by the 15th of the third month after the S Corporation’s tax year end.
IRS Form 1120S – Who Needs to Fill It Out?
Form 1120-S: U.S. Income Tax Return for an S Corporation must be filled out by every S corporation, which is a type of business entity with less than 100 shareholders, to report their income, losses, credits, and deductions to the IRS. To ensure accuracy, this form should be filed electronically or by mail and include Schedule K-1, which lists the individual shareholders and their allotted profit and loss. The form must be completed and filed by the 15th of the third month after the corporation’s tax year end.
Step-by-Step: Form 1120S Instructions For Filling Out the Document
Filing Form 1120-S requires documenting your company’s income, gains, losses, credits, deductions, and other information to the Internal Revenue Service (IRS). The steps can include: preparing the form with your company’s relevant information, such as the corporation name, mailing address, business activity code, and assets; filing Schedule K-1 for each shareholder; and filing the form with the IRS either electronically or by mail. To ensure accuracy, you may find it helpful to have a tax professional complete and submit the form for you. Remember to submit all paperwork within the given timeframe: the 15th day of the 3rd month after the corporation’s tax year. With the right documentation and paperwork, form 1120-S should be an easy filing process.
Below, we present a table that will help you understand how to fill out Form 1120S.
| Step | Description |
|---|---|
| 1. Prepare Form | Fill out Form 1120-S with company details: corporation name, mailing address, business activity code, and assets. |
| 2. File Schedule K-1 | Complete Schedule K-1 for each shareholder, detailing their share of income, gains, losses, credits, and deductions. |
| 3. Choose Filing Method | Decide whether to file electronically or by mail with the IRS. |
| 4. Consider Professional Help | It may be helpful to engage a tax professional to ensure accuracy and compliance. |
| 5. Submission Deadline | Submit all paperwork by the 15th day of the 3rd month after the corporation’s tax year. |
Do You Need to File Form 1120S Each Year?
Before submitting any documents to the IRS, a corporation must first elect to be an S Corporation by filing Form 2553: Election by a Small Business Corporation, and the IRS must accept this election. Form 1120-S: U.S. Income Tax Return for an S Corporation is the annual tax return for businesses that are registered as S corporations. It is used by these businesses to report their income, gains, losses, credits, deductions, and other information to the IRS. This document must be accompanied by Schedule K-1, which lists individual shareholders of the S corporation and the portion of income, profits, losses, credits, and deductions allotted to each. For the most part, these forms must be filed electronically or by mail and must be submitted to the IRS by the 15th of the third month after the end of the corporation’s tax year. Do You Need to File Form 1120-S Each Year? Yes, companies registered as S corporations must complete and submit their tax return, which includes Form 1120-S, to the IRS annually by the due date.
Download the official IRS Form 1120S PDF
On the official IRS website, you will find a link to download Form 1120-S: U.S. Income Tax Return for an S Corporation. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1120-S
Sources:
https://www.irs.gov/forms-pubs/about-form-1120-s
https://www.irs.gov/instructions/i1120s
