What is Form 1120-S used for?

An S-corp is a corporation that chooses “pass-through” taxation, which allows individual shareholders to pay federal income taxes rather than the S-corp itself. The S-Corporation’s corporate income, deductions, and credits are all passed through to shareholders, who disclose this information on their tax forms. Form 1120-S is used to report these goods. In addition, the report includes a Schedule K-1 for each shareholder, which shows their current year allotment of the things listed above.

If you’re not sure how your firm is taxed, ask your tax preparer if you need to submit Form 1120-S.

Who fills out Form 1120-S?

An S-corp files Form 1120-S and gives each shareholder a copy of their Schedule K-1 to help them report their portion of the S-corp’s income on their tax return.

To be taxed as an S-corp, a corporation must fill out and file Form 2553 (Election by a Small Business Corporation). Form 2553 must be submitted to the IRS for approval no later than two months and fifteen days following the start of the tax year in which the election is to take effect. Only certain corporations can make this option, and they must meet strict IRS requirements—for example, an S-corporation cannot have more than 100 stockholders.

How do I file IRS Form 1120-S?

The deadline to file Form 1120-S for the 2023 tax year is March 15, 2024. Form 7004 can be submitted on or before March 15, 2024, to request an automatic extension of time to file, stretching the deadline to September 16, 2024. S-Corporations can file both electronically (e-file online) and physically (by mail). A tax professional or a member of your corporation can complete the tax form.

Learn more about the 2024 company tax deadlines and critical dates for corporations, limited liability companies, and sole proprietorships in the 2023 tax year.

Before the tax season starts, you can prepare to submit 1120-S by having the following information about your company ready:

• Name of your S-Corporation
• Date of incorporation.
• EIN (employer identification number)
• Total Assets
• Mailing Address

Tax forms (known as “schedules”) are supplements to a basic tax return that apply when your company has specific sorts of income or deductions. In addition to the Schedule K-1, Form 1120-S may require:

Schedule B: Other Information

Schedule K-2 is used to report items of foreign tax relevance from the operation of an S-corporation.

Schedule K-3 is used to report to shareholders their share of the items stated in Schedule K-2.

Schedule L: Balance Sheet for Books

Schedule M-1: Reconciliation of Income (Loss) per Books and Income (Loss) per Return

Schedule M-2: Analysis of Accumulated Adjustment Account, Shareholders’ Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments