What is Form 1120-S?
Form 1120-S, U.S. Income Tax Return for an S Corporation, is used by S corporations to report their income, gains, losses, deductions, and credits to the IRS. S corporations are pass-through entities, meaning the corporation itself typically doesn't pay federal income tax.
Who Must File Form 1120-S?
Every domestic corporation that elected S corporation status by filing Form 2553 must file Form 1120-S, even if the corporation has no income or deductions for the year.
When is Form 1120-S Due?
Form 1120-S must be filed by:
- The 15th day of the 3rd month after the end of the tax year
For calendar year corporations, this means the form is due March 15. You can request a 6-month extension by filing Form 7004.
What Does Form 1120-S Report?
The form includes information about:
- Gross receipts and returns
- Cost of goods sold
- Ordinary income or loss
- Tax and payments
- Schedule K (shareholders' pro rata share items)
- Schedule L (balance sheet)
- Schedule M-1 (reconciliation of income)
How is S Corporation Income Taxed?
S corporations don't pay federal income tax at the corporate level. Instead:
- Income, losses, deductions, and credits pass through to shareholders
- Shareholders report their share of items on their personal tax returns
- Each shareholder receives a Schedule K-1 showing their pro rata share
Schedule K-1 Requirements
S corporations must provide each shareholder with a Schedule K-1 (Form 1120-S) by the same date Form 1120-S is due (including extensions).
Official Source: IRS Form 1120-S
