Form 1120-S is used to record S-corporation income, deductions, and distributions to the IRS. Our team of experts knows the special tax concerns that apply to S-corporations and assures proper reporting to keep you in compliance with tax requirements.
Significance of the form
Form 1120-S records an S corporation’s income, deductions, gains, losses, credits, and other important information. The form assists in determining the S corporation’s tax obligation and gives information on income distribution to shareholders.
A checklist to have your form filing process smooth!
- Basic Business Information: Provide your S-corporation’s legal name, address, and Employer Identification Number (EIN).
- Shareholder Information: Include the names, addresses, and ownership percentages of all S-corporation shareholders. Include any changes in ownership that occurred during the tax year.
- Income and Expenses: Summarise the corporation’s income and expenses for the fiscal year. This comprises sales, services, and other revenue, as well as deductible expenses including wages, rent, supplies, and running costs.
- Balance Sheet Information: Create a balance sheet that illustrates the S-corporation’s assets, liabilities, and shareholder’s equity at the beginning and conclusion of the tax year.
- Shareholder Distributions: Provide information about any distributions or dividends made to shareholders throughout the tax year. This data is required to compute the taxable income allotted to each shareholder.
- Tax Payments and Credits: Include any projected tax payments made during the year, as well as any relevant tax credits or deductions.