Form Instructions 1120 and Form 1120: Basics
Form 1120-S: U.S. Income Tax Return for an S Corporation Definition
The return must be filed by the S corporation. Form 1120-S is filed using Form 1040 (or other applicable form, that form is not available). Form 1120-S is not used to report interest, ordinary dividends, or capital gains. Form 1099-D is required to be filed if a Form 1120-S is filed. The return, for U.S. citizens and residents claiming S corporation foreign tax credit purposes, must be filed on behalf of the S corporation by a U.S. person who is a member of the organization. Form 1099-R can be used to report the S corporation income, loss, and dividend. The income and losses are shown on the form and are subject to a separate return. The tax on the income, loss, and dividend may be reduced because the S corporation receives certain distributions. For more information, see Pub. 525, U.S. Corporation Tax Guide. For a description of the filing requirements applicable to Form 1120-S, see Pub. 525. The following are instructions on Form 1120-S for U.S. citizens and residents. Forms 1120-S are filed using Form 1040 or other applicable form, that form is not available. Form 1120-S must be filed by the S corporation unless a separate return (Form 1120-S-EZ) is to be filed because the S corporation has paid U.S. income taxes and withheld foreign tax. S corporation shareholders must be U.S. citizens or residents and shareholders of the S corporation cannot be a foreign personal holding company (HOLD). Form 1120-S-EZ is filed by the S corporation. See the instructions to Form 1120-S-EZ for U.S. citizens and residents. Form 1120-S-EZ is not used to report interest, ordinary dividends, or capital gains. Form 1099-S, Foreign Tax Credit Return of U.S. Shareholders, is also required to be filed if a Form 1120-S is filed. To report the S corporation income, no return for Form 1099-S need be filed. When filing Form 1099-S, taxpayers must be U.S. citizens or residents and shareholders of the S corporation cannot be HOLD's. Form 1099-S can be used to report the S corporation income, loss, and dividend. The income, loss, and dividend are shown on the form and are subject to a separate
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
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