2017-2025 Form

What is the Form 1120 S

The Form 1120 S is a tax document used by S corporations in the United States to report income, deductions, and credits to the Internal Revenue Service (IRS). S corporations are special tax entities that allow income to pass through to shareholders, avoiding double taxation at the corporate level. This form is essential for ensuring compliance with federal tax regulations and accurately reflecting the financial activities of the business for the tax year.

How to use the Form 1120 S

To use the Form 1120 S, businesses must first determine their eligibility as an S corporation. Once confirmed, they should gather all necessary financial information, including income, expenses, and any applicable deductions. The form requires details on shareholder information, including the number of shares owned and the distribution of profits. After completing the form, it must be filed with the IRS, typically by the fifteenth day of the third month following the end of the corporation's tax year.

Steps to complete the Form 1120 S

Completing the Form 1120 S involves several key steps:

• Gather financial records, including income statements and balance sheets.
• Fill out the basic information section, including the corporation's name, address, and Employer Identification Number (EIN).
• Report income and deductions on the appropriate lines, ensuring accuracy and completeness.
• Detail shareholder information, including each shareholder's percentage of ownership and any distributions made during the year.
• Review the form for accuracy and completeness before submission.

Filing Deadlines / Important Dates

The filing deadline for the Form 1120 S is typically the fifteenth day of the third month after the end of the corporation's tax year. For corporations operating on a calendar year, this means the form is due by March 15. If the deadline falls on a weekend or holiday, the due date is extended to the next business day. It is important for corporations to adhere to these deadlines to avoid penalties and interest on unpaid taxes.

Required Documents

To complete the Form 1120 S, several documents are required, including:

• Financial statements, such as income statements and balance sheets.
• Records of all income received and expenses incurred during the tax year.
• Documentation of any shareholder distributions or loans.
• Previous year’s tax return, if applicable, for reference.

Form Submission Methods (Online / Mail / In-Person)

The Form 1120 S can be submitted to the IRS in several ways. Corporations can file electronically using approved e-filing software, which can expedite processing times and reduce errors. Alternatively, the form can be printed and mailed to the appropriate IRS address based on the corporation's location. In-person submissions are generally not accepted, making electronic and mail options the primary methods for filing.