Form Instruction 1120 & 1120-A and Form 1120: Basics
Form 1120-S: U.S. Income Tax Return for an S Corporation Definition
Form 1120-S is generally used to report the amount of dividends received from an S corporation but the return may be used separately to report the amount of income and losses arising out of S corporation operations or S corporation investments. See Rev. Run. 2002-52, 2002-1 C.B. 381 for related references. The following items should be reported in the applicable returns: Any dividend received. This includes the amount to which the shareholder is entitled at the time of the dividend. The total of all transfers of stock. This total will equal the amount of stock to which the shareholder is entitled at the time of the transfer at a price equal to the shareholder's share of the corporation's stock at that time. For example, if a shareholder pays a price per share of 5.00, then the amount of stock to which the shareholder is entitled at the time of a transfer of stock of 5.00 in any given year will equal 5.00/share. The amount paid or the fair market value of the stock transferred. The amount of any capital gain or loss realized upon the dispositions of stock. The number of shares of stock sold or purchased. See Rev. Run. 2002-52, 2002-1 C.B. 381 for related references. An additional paragraph to the return to report the date of receipt of shareholder dividend by the corporation. Report the amount of dividend received in box 18b (or boxes 12b or 12c), as applicable. In addition, the following information is required for the return: The total amount paid by the corporation to a shareholder, including dividends, capital gains, losses and interest earned on dividends. The total amount of losses accrued during the taxable year by the corporation or any predecessor of the corporation that is related to dividends received and to the shareholder's ownership interest in the corporation. The adjusted basis of the beneficial ownership of the stock. The fair market value of the stock as of the date of dividend. The sum of any stock dividends received during the taxable year. An additional paragraph reporting the date of receipt of beneficial ownership in box 3 and the total of the shareholder's capital gains, loss, and deductions computed separately for each corporation, or related entities, in order to report the amount of total capital gains or losses computed separately with respect to each
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
Award-winning PDF software
