⇨

Blank IRS 1120 PDF Form

The IRS 1120 form, recognized as the U.S. Corporation Income Tax Return, serves as the standard federal income tax form for domestic corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service. This form plays a critical role in ensuring that entities comply with U.S. tax law by accurately declaring their taxable income. For detailed guidance on how to fill out this form, click the button below.

Content Overview

Navigating the complexities of tax season can be daunting for many, especially for corporations in the United States tasked with ensuring compliance with the Internal Revenue Service's (IRS) regulations. Central to this compliance is the IRS 1120 form, a critical document for U.S. corporations, including LLCs that elect to be treated as corporations. This form serves as the primary tool through which these entities report their income, gains, losses, deductions, and credits to the IRS. Beyond merely fulfilling a tax obligation, the careful preparation of the IRS 1120 form can uncover opportunities for tax savings and provide valuable insights into the financial health of a corporation. Failure to accurately complete this form can lead to penalties or audits, making it imperative for corporations to approach this task with diligence and an understanding of the form's nuances. As corporations endeavor to meet their tax responsibilities, the importance of the IRS 1120 form in maintaining compliance cannot be overstated, encompassing a myriad of components, each vital for the fiscal transparency and compliance of the filing entity.

Document Preview

Form 1120

Department of the Treasury

Internal Revenue Service

A Check if:

1a Consolidated return (attach Form 851) .

b Life/nonlife consoli- dated return . . .

2Personal holding co. (attach Sch. PH) . .

3Personal service corp. (see instructions) . .

4 Schedule M-3 attached

		U.S. Corporation Income Tax Return							OMB No. 1545-0123
		U.S. Corporation Income Tax Return


For calendar year 2021 or tax year beginning					, 2021, ending		, 20		2021
	▶ Go to www.irs.gov/Form1120 for instructions and the latest information.								2021
	Name						B Employer identification number
TYPE
TYPE	Number, street, and room or suite no. If a P.O. box, see instructions.						C Date incorporated
OR							C Date incorporated
OR
PRINT
PRINT	City or town, state or province, country, and ZIP or foreign postal code						D Total assets (see instructions)
							D Total assets (see instructions)
								$
E Check if: (1)		Initial return	(2)	Final return	(3)	Name change	(4)	Address change

	1a			Gross receipts or sales								. . .		.		1a
		b		Returns and allowances								. . .		.		1b
		c		Balance. Subtract line 1b from line 1a								. . . . . . . . . . . .										1c
	2			Cost of goods sold (attach Form 1125-A)								. . . . . . . . . . . .										2
	3			Gross profit. Subtract line 2 from line 1c								. . . . . . . . . . . .										3
Income	4			Dividends and inclusions (Schedule C, line 23)								. . . . . . . . . . . .										4
Income	5			Interest		. . . . . . . . . . . . . . . . . .						. . . . . . . . . . . .										5
	5			Interest		. . . . . . . . . . . . . . . . . .						. . . . . . . . . . . .										5
	6			Gross rents								. . . . . . . . . . . .										6
	7			Gross royalties								. . . . . . . . . . . .										7
	8			Capital gain net income (attach Schedule D (Form 1120)) . . . .								. . . . . . . . . . . .										8
	9			Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)								. . . . . . . . . . . .										9
	10			Other income (see instructions—attach statement)								. . . . . . . . . . . .										10
	11			Total income. Add lines 3 through 10								. . .		.	. .		. .	.	.	.	▶	11
deductions.)	12			Compensation of officers (see instructions—attach Form 1125-E) .								. . .		.	. .		. .	.	.	.	▶	12
deductions.)	13			Salaries and wages (less employment credits)								. . . . . . . . . . . .										13
	13			Salaries and wages (less employment credits)								. . . . . . . . . . . .										13
	14			Repairs and maintenance								. . . . . . . . . . . .										14
	15			Bad debts								. . . . . . . . . . . .										15
on	16			Rents								. . . . . . . . . . . .										16
on	17			Taxes and licenses								. . . . . . . . . . . .										17
limitations	17			Taxes and licenses								. . . . . . . . . . . .										17
limitations	20			Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . .																		20
	18			Interest (see instructions)								. . . . . . . . . . . .										18
	19			Charitable contributions								. . . . . . . . . . . .										19
for
for	21			Depletion								. . . . . . . . . . . .										21
instructions	25			Reserved for future use								. . . . . . . . . . . .										25
	22			Advertising								. . . . . . . . . . . .										22
	23			Pension, profit-sharing, etc., plans				. . . . . . . . . .				. . . . . . . . . . . .										23
	24			Employee benefit programs			. . . . . . . . . . . .					. . . . . . . . . . . .										24
(See
(See	26			Other deductions (attach statement)								. . . . . . . . . . . .										26
	26			Other deductions (attach statement)								. . . . . . . . . . . .										26
Deductions	27			Total deductions. Add lines 12 through 26								. . .		.	. .		. .	.	.	.	▶	27
Deductions	28			Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. .																		28
	28																					28
	29a			Net operating loss deduction (see instructions)								. . .		.		29a
		b		Special deductions (Schedule C, line 24)								. . .		.		29b
		c		Add lines 29a and 29b								. . . . . . . . . . . .										29c
and	30			Taxable income. Subtract line 29c from line 28. See instructions .								. . . . . . . . . . . .										30
and	31			Total tax		(Schedule J, Part I, line 11)						. . . . . . . . . . . .										31
Credits,Refundable Payments	31			Total tax		(Schedule J, Part I, line 11)						. . . . . . . . . . . .										31
Credits,Refundable Payments	32			Reserved for future use								. . . . . . . . . . . .										32
	33			Total payments and credits (Schedule J, Part III, line 23) . . . .								. . . . . . . . . . . .										33
	34			Estimated tax penalty. See instructions. Check if Form 2220 is attached								. .		.	. .		. .	.	. ▶			34
	35			Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed													. . . . . .					35
Tax,	36			Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid																		36
Tax,	37			Enter amount from line 36 you want: Credited to 2022 estimated tax ▶														Refunded ▶				37
	37																	Refunded ▶				37
Sign				Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
Sign				and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.																	May the IRS discuss this return
Here
																					with the preparer shown below?
																					See instructions.			Yes	No
			▲Signature of officer							Date	▲		Title								See instructions.			Yes	No
			▲Signature of officer							Date	▲		Title

Paid					Print/Type preparer’s name				Preparer’s signature							Date				Check		if	PTIN
Paid																				Check		if
Preparer																				self-employed
Preparer					Firm’s name ▶														Firm’s EIN ▶
Use Only					Firm’s name ▶														Firm’s EIN ▶
Use Only					Firm’s address ▶														Phone no.
					Firm’s address ▶														Phone no.
For Paperwork Reduction Act Notice, see separate instructions.														Cat. No. 11450Q									Form 1120 (2021)

Form 1120 (2021)				Page 2
Schedule C	Dividends, Inclusions, and Special Deductions (see	(a) Dividends and	(b) %	(c) Special deductions
	instructions)	inclusions		(a) × (b)

1Dividends from less-than-20%-owned domestic corporations (other than debt-financed

stock)

2Dividends from 20%-or-more-owned domestic corporations (other than debt-financed

	stock)	65
		See
3	Dividends on certain debt-financed stock of domestic and foreign corporations . .	instructions
4	Dividends on certain preferred stock of less-than-20%-owned public utilities . . .	23.3
5	Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . .	26.7
6	Dividends from less-than-20%-owned foreign corporations and certain FSCs . . .	50
7	Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . .	65
8	Dividends from wholly owned foreign subsidiaries	100
		See
9	Subtotal. Add lines 1 through 8. See instructions for limitations	instructions

10Dividends from domestic corporations received by a small business investment

	company operating under the Small Business Investment Act of 1958	100
11	Dividends from affiliated group members	100
12	Dividends from certain FSCs	100

13Foreign-source portion of dividends received from a specified 10%-owned foreign

	corporation (excluding hybrid dividends) (see instructions)	100
14	Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13
	(including any hybrid dividends)
15	Reserved for future use
16a	Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of
	the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471)	100
	(see instructions)	100
b	Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s)
	5471) (see instructions)
c	Other inclusions from CFCs under subpart F not included on line 16a, 16b, or 17 (attach
	Form(s) 5471) (see instructions)

17	Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) . .
18	Gross-up for foreign taxes deemed paid
19	IC-DISC and former DISC dividends not included on line 1, 2, or 3
20	Other dividends
21	Deduction for dividends paid on certain preferred stock of public utilities . . . .
22	Section 250 deduction (attach Form 8993)

23Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4 . . . . . . . . . . . . . . . . . . . . . .

24	Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 29b

Form 1120 (2021)


Form 1120 (2021)						Page 3
Schedule J		Tax Computation and Payment (see instructions)
Part I—Tax Computation
1	Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions			▶
2	Income tax. See instructions		. . . .	. . .	2
3	Base erosion minimum tax amount (attach Form 8991)		. . . .	. . .	3
4	Add lines 2 and 3		. . . .	. . .	4
5a	Foreign tax credit (attach Form 1118)		5a
b	Credit from Form 8834 (see instructions)		5b
c	General business credit (attach Form 3800)		5c
d	Credit for prior year minimum tax (attach Form 8827)		5d
e	Bond credits from Form 8912		5e
6	Total credits. Add lines 5a through 5e		. . . .	. . .	6
7	Subtract line 6 from line 4		. . . .	. . .	7
8	Personal holding company tax (attach Schedule PH (Form 1120))		. . . .	. . .	8
9a	Recapture of investment credit (attach Form 4255)		9a
b	Recapture of low-income housing credit (attach Form 8611)		9b
c	Interest due under the look-back method—completed long-term contracts (attach
	Form 8697)		9c
d	Interest due under the look-back method—income forecast method (attach Form 8866)		9d
e	Alternative tax on qualifying shipping activities (attach Form 8902)		9e
f	Interest/tax due under section 453A(c) and/or section 453(l)		9f
g	Other (see instructions—attach statement)		9g
10	Total. Add lines 9a through 9g		. . . .	. . .	10
11	Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31		. . . .	. . .	11

Part II—Reserved For Future Use

12 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III—Payments and Refundable Credits

13	2020 overpayment credited to 2021	. . . . . . . .		13
14	2021 estimated tax payments	. . . . . . . .		14
15	2021 refund applied for on Form 4466	. . . . . . . .		15	(	)
16	Combine lines 13, 14, and 15	. . . . . . . .		16
17	Tax deposited with Form 7004	. . . . . . . .		17
18	Withholding (see instructions)	. . . . . . . .		18
19	Total payments. Add lines 16, 17, and 18	. . . . . . . .		19
20	Refundable credits from:
a	Form 2439		20a
b	Form 4136		20b
c	Reserved for future use		20c
d	Other (attach statement—see instructions)		20d
21	Total credits. Add lines 20a through 20d	. . . . . . . .		21
22	Reserved for future use	. . . . . . . .		22
23	Total payments and credits. Add lines 19 and 21. Enter here and on page 1, line 33 .	. . . . . . . .		23
						Form 1120 (2021)

Form 1120 (2021)

Page 4

Schedule K Other Information (see instructions)

Check accounting method: a

Cash

Accrual

Other (specify) ▶

2See the instructions and enter the: a Business activity code no. ▶

b Business activity ▶ c Product or service ▶

3 Is the corporation a subsidiary in an affiliated group or a parent–subsidiary controlled group? . . . . . . . . . .

If “Yes,” enter name and EIN of the parent corporation ▶

4At the end of the tax year:

aDid any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the

corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . .

bDid any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all

classes of the corporation’s stock entitled to vote? If “Yes,” complete Part II of Schedule G (Form 1120) (attach Schedule G) .

5At the end of the tax year, did the corporation:

aOwn directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below.

Yes No

(i)Name of Corporation

(ii)Employer

Identification Number

(if any)

(iii)Country of Incorporation

(iv)Percentage Owned in Voting

Stock

bOwn directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below.

(i)Name of Entity

(ii)Employer

Identification Number

(if any)

(iii)Country of Organization

(iv)Maximum

Percentage Owned in Profit, Loss, or Capital

6During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in

excess of the corporation’s current and accumulated earnings and profits? See sections 301 and 316 . . . . . . . .

If “Yes,” file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.

7At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation’s stock entitled to vote or at least 25% of the total value of all classes of the corporation’s stock? .

For rules of attribution, see section 318. If “Yes,” enter:

(a) Percentage owned ▶

and (b) Owner’s country ▶

(c)The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached ▶

8 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . ▶ If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments.

9Enter the amount of tax-exempt interest received or accrued during the tax year ▶ $

10Enter the number of shareholders at the end of the tax year (if 100 or fewer) ▶

11If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) ▶

If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid.

12Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on

page 1, line 29a.) . . . . . . . . . . . . . . . . . . . . . . . . . ▶ $

Form 1120 (2021)

Page 5

Schedule K Other Information (continued from page 4)

13	Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the	Yes No
13
	tax year less than $250,000?
	If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash
	distributions and the book value of property distributions (other than cash) made during the tax year ▶ $
14	Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions . . . .
	If “Yes,” complete and attach Schedule UTP.
15a	Did the corporation make any payments in 2021 that would require it to file Form(s) 1099?
b	If “Yes,” did or will the corporation file required Form(s) 1099?

16During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its

own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)

of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . .

18Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair

market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . .

19During the corporation’s tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code? . . . . . . . .

20 Is the corporation operating on a cooperative basis?. . . . . . . . . . . . . . . . . . . . . . .

21During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section

267A? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” enter the total amount of the disallowed deductions ▶ $

22Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2)

and (3)) .

If “Yes,” complete and attach Form 8991.

23Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect

	during the tax year? See instructions
24	Does the corporation satisfy one or more of the following? See instructions

aThe corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense.

bThe corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expense.

cThe corporation is a tax shelter and the corporation has business interest expense. If “Yes,” complete and attach Form 8990.

25	Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?
	If “Yes,” enter amount from Form 8996, line 15 . . . . ▶ $

26Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties held directly or indirectly by the corporation, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the shareholders held more than 50% of the stock of the foreign corporation)? If “Yes,” list the ownership

percentage by vote and by value. See instructions . . . . . . . . . . . . . . . . . . . . . . .

Percentage: By Vote

By Value

Form 1120 (2021)

Form 1120 (2021)													Page 6
Schedule L		Balance Sheets per Books					Beginning of tax year				End of tax year
		Assets				(a)		(b)		(c)			(d)
1	Cash
2a	Trade notes and accounts receivable . . .
b	Less allowance for bad debts . .			. . .	(		)		(		)
3	Inventories
4	U.S. government obligations		. . . . .
5	Tax-exempt securities (see instructions) . .
6	Other current assets (attach statement) . .
7	Loans to shareholders
8	Mortgage and real estate loans
9	Other investments (attach statement) . . .
10a	Buildings and other depreciable assets . .
b	Less accumulated depreciation . .			. . .	(		)		(		)
11a	Depletable assets
b	Less accumulated depletion . . .			. . .	(		)		(		)
12	Land (net of any amortization)
13a	Intangible assets (amortizable only)			. . .
b	Less accumulated amortization . .			. . .	(		)		(		)
14	Other assets (attach statement)
15	Total assets
	Liabilities and Shareholders’ Equity
16	Accounts payable
17	Mortgages, notes, bonds payable in less than 1 year
18	Other current liabilities (attach statement) . .
19	Loans from shareholders
20	Mortgages, notes, bonds payable in 1 year or more
21	Other liabilities (attach statement) . . . .
22	Capital stock:	a Preferred stock . . . .
		b Common stock . . . .
23	Additional paid-in capital
24	Retained earnings—Appropriated (attach statement)
25	Retained earnings—Unappropriated . . .
26	Adjustments to shareholders’ equity (attach statement)
27	Less cost of treasury stock							(	)			(	)
28	Total liabilities and shareholders’ equity . .

Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return

Note: The corporation may be required to file Schedule M-3. See instructions.

1	Net income (loss) per books	7	Income recorded on books this year
2	Federal income tax per books		not included on this return (itemize):
3	Excess of capital losses over capital gains .		Tax-exempt interest $

4Income subject to tax not recorded on books this year (itemize):

		8		Deductions on this return not charged
5	Expenses recorded on books this year not			against book income this year (itemize):
	deducted on this return (itemize):		a	Depreciation . . $
a	Depreciation . . . . $		b	Charitable contributions $

bCharitable contributions . $

cTravel and entertainment . $

			9	Add lines 7 and 8
6	Add lines 1 through 5	10		Income (page 1, line 28)—line 6 less line 9

Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)

1	Balance at beginning of year	5			Distributions: a Cash
2	Net income (loss) per books				b Stock . . . .
3	Other increases (itemize):				c Property . . . .
			6		Other decreases (itemize):
				7	Add lines 5 and 6
4	Add lines 1, 2, and 3	8			Balance at end of year (line 4 less line 7)

Form 1120 (2021)

➤ PDF File

Form Specifications

Fact Name	Description
Definition	The IRS Form 1120 is used by corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service.
Filing Requirement	All domestic corporations must file IRS Form 1120, unless they are exempt as per IRS guidelines.
Due Date	Typically, Form 1120 is due by the 15th day of the 4th month after the end of the corporation’s tax year. For corporations operating on a calendar year, this is April 15.
Extension Option	Corporations can apply for a six-month extension to file Form 1120 by submitting Form 7004 by the original due date of the 1120 form.
Tax Payment	Taxes due are expected to be paid by the original due date of Form 1120, regardless of an extension to file.
Electronic Filing	The IRS encourages corporations to file Form 1120 electronically for faster processing and increased accuracy.
Amended Returns	If a corporation needs to correct information on a previously filed Form 1120, they must file an amended return using Form 1120X.
State-Specific Forms	Many states require corporations to file state-specific income tax returns in addition to the federal Form 1120. The applicable laws and requirements vary by state.

IRS 1120: Usage Guidelines

When the time comes to navigate the complexities of corporate taxes, the IRS Form 1120 serves as a critical tool. This form enables corporations to report their income, gains, losses, deductions, and credits, ensuring compliance with tax regulations. Filling out this document meticulously is paramount for any corporation looking to fulfill its tax obligations accurately. The process can appear daunting at first, but by breaking it down into manageable steps, the task becomes much more straightforward. Let's explore the steps needed to complete the IRS 1120 form, aiming to ease the burden and clarify the procedure. Following these guidelines will not only help in submitting a properly filled form but also in understanding the financial standing of your corporation.

Start by gathering all necessary documents and information, including the total income, deductions, and credits of the corporation for the tax year. This prep work is essential for an accurate filing.
Access the latest version of IRS Form 1120 from the official IRS website. Ensure it is the correct form for the tax year you are filing for.
Begin by entering the corporation's name, address, and Employer Identification Number (EIN) in the designated fields at the top of the form.
Check the applicable tax year box at the top of the form to indicate the fiscal year for which the form is being filed.
Fill in the appropriate lines for the corporation's income, including gross receipts or sales and cost of goods sold, to calculate the gross income.
Report all deductions the corporation is entitled to, such as salaries and wages, rent, taxes, and interest. This step is crucial for determining the taxable income.
If applicable, complete the sections related to special deductions, tax computations, and credits meticulously to ensure they are accurately claimed.
Review the computations for taxable income, total tax, and payments made throughout the year, including estimated tax payments and credits.
If the form requires additional schedules or attachments, such as Schedule J for computing tax or Schedule K for other information, make sure these are accurately completed and attached.
Before signing the form, double-check all entries for accuracy and completeness. Any errors can delay processing or result in penalties.
Sign and date the form. An officer of the corporation who is authorized to do so must sign the form. An unsigned form is considered invalid.
Lastly, file the form with the IRS. Depending on your circumstances, you may be able to file electronically, which can expedite the processing time. If mailing, ensure it is sent to the correct address as provided by the IRS for your state.

Filing IRS Form 1120 is a critical but manageable task that ensures a corporation's tax liabilities are accurately reported and fulfilled. By following these organized steps, the process can be conducted smoothly, allowing for a more efficient handling of your corporation's tax responsibilities. Remember, when in doubt, seeking assistance from a tax professional can provide guidance through the intricacies of tax law and form preparation, ensuring compliance and peace of mind.

Your Questions, Answered

What is the IRS 1120 form?

The IRS 1120 form, also known as the U.S. Corporation Income Tax Return, is a document that corporations in the United States use to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS). This form helps the IRS assess the tax liability of corporations.

Who needs to file the IRS 1120 form?

Generally, all domestic corporations (including corporations in bankruptcy) must file an IRS 1120 form, regardless of their income. This requirement applies to both C corporations and S corporations, although S corporations file a specific version called the 1120S. The obligation to file is not dependent on the entity's profit margins; even corporations with zero income are required to submit this form.

When is the IRS 1120 form due?

The due date for filing the IRS 1120 form typically falls on the 15th day of the fourth month following the end of the corporation’s tax year. For corporations operating on a calendar year, this date is April 15th. It's important to note, however, that if the due date falls on a weekend or legal holiday, the deadline is extended to the next business day. Corporations can apply for a six-month extension if more time is needed, but the request must be filed before the original due date.

What information do I need to complete the IRS 1120 form?

Completing the IRS 1120 requires detailed financial information from the corporation. This includes the gross income, dividends, interest, any income from rents and royalties, capital gains, deductions (such as salaries, wages, repairs, and maintenance), and tax credits. Accurate financial statements and records are crucial for reporting and calculating the tax owed or refund due accurately.

Can I file the IRS 1120 form electronically?

Yes, corporations can file the IRS 1120 form electronically through the IRS e-file system. Electronic filing is encouraged by the IRS because it is faster and more secure than paper filing. In fact, certain corporations with assets of $10 million or more and that file at least 250 returns a year are required to file electronically. Filing electronically can also result in quicker processing times for any return or refund owed.

Common mistakes

When businesses set out to fill the IRS 1120 form, which is essential for reporting their income, gains, losses, deductions, and credits to the Internal Revenue Service, a few common errors can occur. Avoiding these mistakes is crucial for ensuring the process is as smooth and accurate as possible.

Not incorporating all necessary schedules and forms - Many businesses overlook the need to attach necessary schedules and forms that support or are required alongside the main 1120 form. This can lead to incomplete filing and potential requests for more information from the IRS.
Misclassifying dividends and distributions - A frequent mistake involves improperly classifying dividends and distributions, which can impact how income is taxed. Businesses must pay close attention to the classification to ensure accurate tax treatment.
Incorrectly reporting income - Reporting business income requires attention to detail. Errors often occur when businesses fail to correctly report their total income or mistakenly include non-taxable income as taxable.
Overlooking deductions and credits - Businesses sometimes miss out on valuable deductions and credits due to a lack of knowledge or oversight. Properly identifying and claiming all eligible deductions and credits can significantly lower a company's tax liability.
Failing to sign and date the form - Although it may seem like a simple step, forgetting to sign and date the form is a common mistake that can delay processing. An unsigned form is considered incomplete and will not be processed by the IRS until corrected.

Being diligent and thorough when completing the IRS 1120 form is essential for any business. Taking the time to double-check information, include all necessary documentation, and understand the tax implications of income and deductions can help avoid the above mistakes. By doing so, businesses can ensure a smoother filing process and potentially save money on their taxes.

Documents used along the form

Filing taxes for a corporation involves more than just completing the IRS Form 1120, which is the U.S. Corporation Income Tax Return. Corporations are also required to complete additional forms and documents that provide further details about their financial activities throughout the tax year. These documents are crucial for the accurate assessment of the corporation's tax obligations and potential refunds. Here are some key forms and documents often used alongside Form 1120:

Schedule K-1 (Form 1065): This form is used by partnerships and S Corporations to report each shareholder’s or partner's share of income, deductions, and credits. Even though it is primarily for partnerships, corporations involved in these entities must also complete it.
Form 1125-A: Corporations use this form to detail the Cost of Goods Sold. This is particularly necessary for manufacturing, wholesale, or retail companies that sell physical products.
Form 1125-E: This document is required for corporations to report compensation paid to officers. It is necessary when a corporation compensates its officers beyond a certain threshold.
Form 4797: This form is used for reporting the sale of business property. It covers both gains and losses from these transactions, which are essential for accurate tax reporting.
Form 4562: It is used to report depreciation and amortization. Businesses that own assets that depreciate over time, such as equipment or buildings, must include this information.
Form 4626: This document is required for corporations that are subject to the Alternative Minimum Tax (AMT). It helps calculate this special tax rate.
Form 8941: Corporations that provide health insurance to their employees may be eligible for a credit. This form is used to calculate the health insurance credit.
Schedule D (Form 1120): Corporations use Schedule D to report capital gains and losses. This includes profits or losses from the sale of capital assets.

In conclusion, while the IRS Form 1120 is critical, the complete picture of a corporation's financial activities and tax obligations involves multiple forms and documents. Each document provides detailed information in specific areas, from compensation and benefits to asset depreciation and the sale of property. Corporations must ensure they complete all relevant forms accurately to comply with tax laws and optimize their tax positions.

Similar forms

When delving into the realm of corporate taxation in the United States, the IRS Form 1120 stands out as a primary document, required annually by the Internal Revenue Service (IRS) from corporations. It serves as the U.S. Corporation Income Tax Return, detailed in reporting a company's income, gains, losses, deductions, credits, and to calculate the income tax liability of corporations. Similar instruments exist within the tax code and beyond, each tailored to specific entities or purposes, but sharing core functionalities with the IRS 1120 form. Here are eight such documents:

IRS Form 1120S: This form parallels the IRS 1120 in its essence but caters exclusively to S corporations. While both forms assess company profits and losses, the 1120S includes the allocation of income, deductions, and credits to its shareholders, based on their respective shares of the corporation.
IRS Form 1065: Employed by partnerships, this form is the counterpart to the 1120 in terms of its functional role for a different entity type. The IRS Form 1065 gathers information about the partnership's income, deductions, gains, losses, etc., similar to the 1120, but it also accounts for the distribution of income and losses among partners.
IRS Form 1041: This document serves as the U.S. Income Tax Return for Estates and Trusts, which, like the 1120, reports income, exemptions, and deductions. However, it is tailored for the fiduciary sector, capturing the taxation elements specific to trusts and estates.
IRS Form 990: Designed for nonprofit organizations, this form aligns with the 1120 by necessitating the reporting of income, expenses, and operational activities. However, its main objective diverges by focusing on ensuring the organization's compliance with the conditions of maintaining its tax-exempt status.
IRS Form 5472: This form is required for 25% foreign-owned U.S. corporations or foreign corporations engaged in a U.S. trade or business. It complements the 1120 by detailing the transactions between the reporting corporation and its foreign or domestic related parties, highlighting cross-border transactions that could affect tax liabilities.
IRS Form 7004: Serving as an application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, the 7004 provides a bridge for corporations, extending the deadline for submitting the 1120 and other corporate tax documents, thereby acknowledging the complexities and the time required to compile accurate returns.
IRS Form 8832: This form allows an entity to elect its tax classification, potentially changing how it files in the future, including possibly filing as a corporation with Form 1120. It underlines the flexibility in tax reporting and planning, acknowledging that businesses evolve and may wish to change their tax treatment to maximize their benefits under the law.
Schedule K-1 (Form 1065): Part of the 1065 filing, the Schedule K-1 delineates the share of a partnership's income, deductions, and credits attributed to each partner. It aligns with IRS Form 1120 in its role of reporting taxable income and other tax attributes, but targets the individual partners within a partnership, personalizing their tax obligations.

Though each of these documents serves different types of entities or specific circumstances within the tax law, they are interconnected in the broader tapestry of U.S. tax compliance, reflecting the complexity and diversity of the American economic landscape. This array of forms underscores a unified goal: to report and regulate the financial activities of businesses and entities, ensuring fair contribution to the public coffers.

Dos and Don'ts

Filing the IRS 1120 form, also known as the U.S. Corporation Income Tax Return, is a critical task for corporations. It's important to approach this responsibility with diligence and accuracy to ensure compliance with tax laws. Here is a concise guide to help you navigate the process smoothly.

Do's:

Ensure accuracy of your Employer Identification Number (EIN). It's essential for the IRS to identify your business correctly.
Report all income accurately. This includes gross receipts, sales, dividends, and any other income your corporation has received.
Deduct eligible business expenses. Keep in mind only legitimate business expenses can be deducted.
Take advantage of tax credits. There are various credits available that can reduce your tax liability.
File on time. The deadline is typically April 15th, but if it falls on a weekend or holiday, it moves to the next business day.
Sign the form. An unsigned return is like an unsigned check – it's not valid.
Utilize electronic filing. It’s faster, more secure, and you get a confirmation receipt.
Keep a copy of your return. It's important for your records and future reference.
Report your assets and liabilities correctly. This includes your corporation’s balance sheet.
Seek professional help if needed. Consulting with a tax professional can provide guidance and ease the process.

Don'ts:

Don’t estimate figures. Use actual numbers to avoid discrepancies that could trigger an audit.
Don’t forget to report all income. Unreported income can lead to penalties and interest.
Don’t deduct personal expenses. Only business-related expenses are deductible.
Don’t overlook details. Small mistakes can cause delays or incorrect calculations of your tax liability.
Don’t miss out on deductions and credits. Do thorough research or consult with a professional.
Don’t file late. Late filing can result in penalties and interest charges.
Don’t ignore IRS notices. If you receive one, respond promptly and accurately.
Don’t submit incomplete forms. Ensure all required fields and schedules are filled out.
Don’t forget to review your return. Double-check all entries before submitting.
Don’t hesitate to amend if necessary. If you find an error after filing, you can correct it by filing an amended return.

Misconceptions

All businesses must file an IRS 1120 form. This is a common misconception. The IRS Form 1120 is specifically for corporations, including C corporations. Sole proprietorships, partnerships, and S corporations have different forms to file, such as the 1040 (Schedule C), 1065, and 1120S forms, respectively.
Extensions to file give you more time to pay taxes owed. While filing for an extension grants corporations additional time to submit their 1120 form, it does not extend the deadline to pay any taxes owed. Taxes are due by the original filing deadline, and failure to pay them on time may result in interest and penalties.
Filing electronically is optional. Many believe filing electronically is a choice, but corporations with assets of $10 million or more and filing at least 250 returns a year are required to file the Form 1120 electronically. Electronic filing has become the standard for its efficiency and is encouraged for all others.
The 1120 form is just for reporting income. This is not entirely true. While the Form 1120 is used to report income, deductions, and credits, it also serves other purposes. For example, it is used to calculate the corporation's income tax liability and report other information such as dividends paid and accumulated earnings.
1120 forms do not need to be signed. A significant oversight is the assumption that the 1120 form does not require a signature. In fact, like many other tax forms, the IRS Form 1120 must be signed and dated by an officer of the corporation empowered to do so. Electronic signatures are accepted for electronically filed forms.
If your corporation didn't make money, you don't need to file Form 1120. This misconception can lead to trouble. Regardless of whether your corporation made or lost money, it is required to file a return. The lack of income does not exempt a corporation from filing Form 1120, as it may still be liable for other types of taxes or required to report certain information.
IRS Form 1120 is the same as Form 1120S. Though they sound similar, IRS Form 1120 and Form 1120S serve different purposes. Form 1120 is for C corporations, while Form 1120S is for S corporations, which are taxed differently under the United States tax code. It's essential to understand the distinctions to ensure compliance with IRS requirements.

Key takeaways

The IRS 1120 form, also known as the U.S. Corporation Income Tax Return, is a critical document for corporations operating within the United States. It serves as the principal form that corporations use to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS). Understanding how to properly fill out and use this form is essential for maintaining compliance with U.S. tax law. Here are six key takeaways for anyone tasked with this responsibility:

Eligibility: The 1120 form must be filled out by all domestic corporations for tax purposes. This includes LLCs that have elected to be treated as corporations. It's crucial to understand the entity's tax designation to ensure the correct form is used.
Deadline: Corporations generally must file their 1120 form by the 15th day of the fourth month following the end of their fiscal year. For corporations that operate on a calendar year, the deadline is April 15. If more time is needed, an extension can be requested, but this does not extend the time to pay any taxes due.
Information Required: The form requires detailed financial information, including gross income, dividends, interest, rents, royalties, capital gains, deductions (such as salaries, rents, and taxes), and taxes owed. Accurate record-keeping throughout the year is key to filling out this section accurately.
Schedules and Additional Forms: Depending on the corporation’s activities and financial situation, additional schedules and forms may need to be attached to the 1120 form. For example, Schedule C for dividend and special deductions, or Form 1125-A for cost of goods sold. Understanding which additional documents are required is critical.
Electronic Filing: Corporations can file Form 1120 electronically through the IRS e-file system. This method is faster, secure, and ensures fewer errors when compared to paper filing. The IRS encourages electronic filing for its efficiency and convenience.
Payment of Tax: Corporations need to estimate their tax liability and ensure that sufficient taxes are paid throughout the year through estimated tax payments or withholdings. If taxes are underpaid, the corporation may be subject to penalties and interest. The balance, if any, is due upon filing the 1120 form.

Filling out and submitting the IRS 1120 form accurately is vital for any corporation. It not only ensures compliance with tax laws but also helps in managing the corporation's financial health. Seeking advice from tax professionals can provide additional guidance and reduce the risk of errors.

Blank IRS 1120 PDF Form

Document Preview

Form Specifications

IRS 1120: Usage Guidelines

Your Questions, Answered

Common mistakes

Documents used along the form

Similar forms

Dos and Don'ts

Misconceptions

Key takeaways

Other PDF Documents