Browsing: IRS Form 1120S

IRS Form 1120S is the U.S. Income Tax Return for S Corporations, used to report income, deductions, gains, losses, and credits for businesses that have elected S Corporation status. Since S Corporations are pass-through entities, their profits and losses are distributed to shareholders, who report them on their individual tax returns. This form ensures compliance with tax regulations and helps businesses document their financial activities for the tax year.

The form includes sections for ordinary business income, rental real estate income, and shareholder distributions. S Corporations must file Form 1120S annually, even if they had no income or activity during the year. Additionally, shareholders receive a Schedule K-1, which outlines their share of the corporation’s income and deductions. Proper completion of this form is crucial for maintaining tax compliance and avoiding penalties.