1120s Form

What is the 1120s Form

The 1120S form is a tax return specifically designed for S corporations in the United States. This form allows S corporations to report their income, deductions, and credits to the Internal Revenue Service (IRS). Unlike traditional corporations, S corporations pass their income directly to shareholders, who then report it on their personal tax returns. This structure helps avoid double taxation, making the 1120S form essential for S corporations to comply with federal tax regulations.

How to use the 1120s Form

Using the 2019 form 1120S involves several steps to ensure accurate reporting of your S corporation's financial activities. First, gather all necessary financial records, including income statements, balance sheets, and any relevant documentation of deductions. Next, complete the form by entering your corporation's identifying information, such as name, address, and Employer Identification Number (EIN). Follow the instructions for reporting income and expenses, and ensure that all calculations are accurate. Finally, review the form for completeness before submitting it to the IRS.

Steps to complete the 1120s Form

Completing the 2S form requires careful attention to detail. Start by filling out the basic information section, which includes the corporation's name, address, and EIN. Then, report the corporation's income on the first page, including gross receipts and other income sources. Move on to the deductions section, where you can list allowable expenses such as salaries, rent, and utilities. After calculating the total income and deductions, determine the taxable income and any credits that apply. Ensure all sections are filled out correctly before signing and dating the form.

Filing Deadlines / Important Dates

The due date for filing the 2S form is typically March 15, 2020, for calendar year S corporations. If this date falls on a weekend or holiday, the deadline may be extended. It is crucial to file the form on time to avoid penalties and interest charges. If additional time is needed, S corporations can file for an extension, allowing them to submit the form by September 15, 2020. However, an extension to file does not extend the time to pay any taxes owed.

Required Documents

To complete the 2019 form 1120S, several documents are necessary. These include financial statements that detail income and expenses, records of shareholder distributions, and any supporting documentation for deductions claimed. Additionally, corporations should have their previous year's tax return on hand for reference. Gathering these documents in advance can streamline the filing process and help ensure accuracy.

Legal use of the 1120s Form

The 2S form must be completed and filed in accordance with IRS regulations to be considered legally valid. This includes ensuring that all information is accurate and that the form is signed by an authorized officer of the corporation. E-filing is permitted, and using a reliable eSignature solution can enhance the security and legality of the submission. Compliance with the relevant tax laws is essential to avoid penalties and ensure that the S corporation maintains its tax status.