Form 1120-F and Form 1120: Basics
Form 1120-S: U.S. Income Tax Return for an S Corporation Definition
It is used only where the shareholders are shareholders of a C corporation. To determine an S corporation shareholder, make the following calculations. Enter “S” in box 1, box 2, or box 3 of Form 1120-S, column (a). Enter “C” in box 1, box 2, or box 3 of Form 1120-S, column (b). Enter the S corporation's tax year in box 1, column (c). Enter Form 1120-S, column (a), or box 3, column (b), as appropriate. A. Enter the total of the share for which the shareholder paid the applicable federal tax under the individual income tax return form you used (such as Form 1040 or Form 1040NR) and the applicable state tax return form you used (such as a state income tax return). B. Enter the S corporation's tax year in box 1, column (c), as described in (a). Do not enter more than one S corporation shareholder. C. Include the S corporation's aggregate federal, state, and local income tax liability. Enter the total of the fair market value of S corporation property held by each S corporation shareholder, the sum of all wages, tips, or other compensation, and the total fair market value of S corporation property used by each S corporation shareholder. Enter all such items on lines 23 through 29 of Form 1120-S, column (c). Enter the income tax withheld by an S corporation shareholder in boxes 1c, 2c, or 2d of Form W-2, columns (e), (f), (g), or (h) (depending on which form you filed). D. Enter the total amount of any state and federal withheld income taxes withheld under the federal, state, and local withholding tax laws, the total amount that would have been withheld if each S corporation shareholder did not, in addition, be an employee, and the aggregate of the amounts of such withheld income taxes withheld under the federal, state, and local withholding tax laws (all these amounts on lines 25 through 29 of Form W-2, columns (f), (g), and (h)), using the applicable state withholding income tax rate for the taxpayer's filing status, filing type, income level, and number of employees.
Form 1120-S: U.S. Income Tax Return for an S Corporation Definition
This form is sent to the Internal Revenue Service (IRS). These schedules can be used to: determine whether there is an election to include S corporation share of income by shareholders of the corporation, and Determine how dividends of the corporation and its shareholders are treated. If an S corporation is treated as a partnership for federal income tax purposes, Form 1120-S also requires information about the partnership's income, deductions, and credits. This information should be listed on Part III. If an S corporation is a personal service corporation (PSC) for federal income tax purposes, Form 1120-S also requires information about the corporation's income, deductions, and credits. This information should be listed on Part III. What if the information on the Schedule A is incorrect? If your Schedule A doesn't give the correct information, we will apply the following adjustments and provide notice of your corrections. If the corrected information doesn't affect the corporation's income tax, we'll include it in the return. If the amended information affects the corporation's federal tax liability, we'll apply either of the following: a) the modified adjusted gross income of the corporation, or b) the corporation's income amount on the Form 1120. If either of the adjustments above applies, no notice should be sent. Corrected return with income amount in effect Before we send a corrected return you must receive the following information. The following information must be found on the corrected return: Your corrected income tax return. Your corrected Form 1120-S. This item lists any adjustments that affect your income tax. You must have your corrected Form 1120-S if you haven't received it yet. The date the schedule is due. Any return received after that date but before the due date of the amended return may not be accepted. Corrected schedule Schedule A Corrected return without income amount on Form 1120-S Form 1120-S may be filed by completing the Form 1120. If a return is missing some or all of the information required on the form, or it's incorrect because of a typographical error, we may not fill the entire form. Therefore, our procedures for completing Schedule A depend on the return missing some or all of the required information. If we find that the return is missing any of the information on Schedule A, we won't make any of the adjustments listed on this form, even if the additional information required is on the
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