1120-S – S-Corporation Tax Return

  • **A corporation or other entity must file Form 1120-S if (a) it elected to be an S corporation by filing Form 2553, (b) the IRS accepted the election, and (c) the election remains in effect.
    • If you haven’t filed Form 2553, or didn’t file Form 2553 on time, you may be entitled to relief for a late-filed election to be an S corporation.
  • **S Corporations can generally electronically file (e-file) Form 1120-S, related forms, schedules, statements, and attachments; Form 7004 (automatic extension of time to file); and Forms 940, 941, and 944 (employment tax returns). Form 1099 and other information returns can also be electronically filed.
  • **Shareholders must include their share of the income on their tax return whether or not it is distributed to them. Unlike most partnership income, S corporation income isn’t self-employment income and isn’t subject to self-employment tax(tax tip).
  • **Generally, an S corporation must file Form 1120-S by the 15th day of the 3rd month after the end of its tax year.
  • File Income Statement and Balance Sheet
  • **Line 11. Section 179 Deduction: A corporation can elect to expense part or all of the cost of certain property the corporation purchased during the tax year for use in its trade or business or certain rental activities.
  • Tax strategies for 401(k) plans and Retirement. Including Solo 401(K)
  • **Distributions and other payments by an S Corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.
  • Payroll strategies for officer compensation, avoid paying extra tax. Analysis will be performed.
  • **Schedule K. Schedule K is a summary schedule of all shareholders’ shares of the corporation’s income, deductions, credits, etc.
  • **Schedule K-1. Schedule K-1 shows each shareholder’s separate share. Attach a copy of each Schedule K-1 to the Form 1120-S filed with the IRS.

**Forms

  1. 1. Schedule N (Form 1120), Foreign Operations of U.S. Corporations.
  2. Schedule D (Form 1120-S), Capital Gains and Losses and Built-in Gains.
  3. Form 8949, Sales and Other Dispositions of Capital Assets.
  4. Form 8996, Qualified Opportunity Fund.
  5. Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation.
  6. Form 1125-A, Cost of Goods Sold.
  7. Form 8050, Direct Deposit of Corporate Tax Refund.
  8. Form 4136, Credit for Federal Tax Paid on Fuels.
  9. Form 8941, Credit for Small Employer Health Insurance Premiums.
  10. Form 6252, Installment Sale Income.

Tax strategies for distributions will be used to save on the tax bill.