1120 – Corporation Tax Return

  • **New employee retention credit. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows a new employee retention credit for qualified wages. Any qualified wages for which an eligible employer claims against payroll taxes for the new employee retention credit may not be taken into account for purposes of determining other credits.
  • **Temporary suspension of limitations on certain contributions. Under the CARES Act, a corporation may elect to deduct certain qualified cash contributions made in 2020 and 2021 without regard to the 10% taxable income limit. The total amount of the contribution claimed cannot exceed 25% of the excess of the corporation’s taxable income over all other allowable charitable contributions.
  • **Corporations engaged in farming. A corporation (other than a corporation that is a subchapter T cooperative) that engages in farming should use Form 1120 to report the income (loss) from such activities.
  • ** Form 3115 – Application for Change in Accounting Method
  • ** Form 1128 – Application To Adopt, Change, or Retain a Tax Year
  • **A corporation with total assets of $10 million or more on the last day of
    the tax year must file Schedule M-3 (Form 1120), Net Income (Loss) Reconciliation for
    Corporations With Total Assets of $10 Million or More, instead of Schedule M-1
  • File Corporation Income Statement and Balance Sheet Ono tax return. M1, M2 and M3 adjustments will be processed and evaluated.
  • Do research on Employment and R&D tax credits (employee retention credit) also all other tax credits like solar power investments
  • **Form 1125 -A (Cost of Goods Sold) to be evaluated
  • **Form 1125 – E (Compensation of Officers) to be evaluated
  • **Schedule C – Asset Management, Depreciation Strategies, Credits State Tax return may be necessary
  • Work opportunity credit (Form 5884).
  • Employee retention credit (Form 5884-A).
  • Credit for increasing research activities (Form 6765).
  • Orphan drug credit (Form 8820).
  • Disabled access credit (Form 8826).
  • Empowerment zone employment credit (Form 8844).
  • Indian employment credit (Form 8845).
  • Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846).
  • Credit for small employer pension plan start-up costs (Form 8881).
  • Credit for employer-provided childcare facilities and services (Form 8882).
  • Low sulfur diesel fuel production credit (Form 8896).
  • Mine rescue team training credit (Form 8923).
  • Credit for employer differential wage payments (Form 8932).
  • Credit for small employer health insurance premiums (Form 8941).
  • Employer credit for paid family and medical leave (Form 8994).