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Form 1120-H and Form 1120: Basics

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Form 1120-S: U.S. Income Tax Return for an S Corporation Definition

The requirements, form, and instructions for Form 1120-S are the same as those specified for Form 1040-C, due by the due date, under the Instructions for Form 1040-C. Certain restrictions also apply to Form 1120-S. (See also Notice 2013-42.) Form 1120 is also used to prepare Schedule K-1. See Part II, Item C of Form 8949 and Part IX, Item 3 of Form 8949, for additional information. In the case of an S corporation that is exempt from U.S. federal income tax, Form 1120-S can include only the following information for the year(s) in which the payment was made, or the period for which it was paid: The number of shares and the fair market value of all the shares of the corporation, as applicable; The name with the last known address of the share owner, who must designate in the return the address where notice can be given, (if any) The amount of the payment for each share of the business interest, for the year or period (whichever is longer) for which such amount is paid; In the case of S corporation shareholders who received the payment from the individual receiving the payment, the name and address of such party; and In the case of shareholders who received the payment from individuals other than related individuals, the name of the entity that paid the payment for each individual. Forms 1120-S are not required to be transmitted to or processed through the IRS, and may be transmitted or processed by other entities and tax preparers. However, a Form 1120-S for an individual would not be processed by the IRS and would therefore not contain any information about the shareholder(s) that would be provided to the IRS upon a request for the shareholder's tax return information. If the Form 1120-S for an individual fails to include this information, a shareholder cannot be identified using the information contained on the Form 8889, U.S. Individual Income Tax Return. Form 1120-S is available electronically from the IRS website. A shareholder's tax return information must be received by the IRS by the statutory due date, as specified in section 6014-A, as prescribed by section 6018-A, for the calendar year (including extensions) during which it was paid. A Form 1120-S is used to report the income, losses, and dividends of S corporation shareholders.

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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 form.

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