The Federal Supporting Form, specifically Form 1120-S, is the U.S. Income Tax Return for S Corporations. This form is essential for corporations that have elected to be treated as S corporations, allowing them to pass income directly to shareholders and avoid double taxation. If your corporation qualifies, take the next step by filling out the form below.
The Federal Supporting Form 1120-S is a crucial document for S Corporations in the United States, designed to report income, deductions, and other relevant financial information. This form must be filed by corporations that have elected to be taxed as S Corporations by submitting Form 2553. It serves various purposes, including determining the corporation's tax liability and providing shareholders with essential information regarding their pro-rata share of income, deductions, and credits. The form includes sections for reporting gross receipts, cost of goods sold, and total income, along with detailed deductions for expenses such as salaries, repairs, and interest. Additionally, it requires the disclosure of shareholder information, including the number of shareholders and any changes in corporate status. Other important aspects covered by the form include accounting methods, asset valuations, and any special elections or credits that may apply. Completing this form accurately is vital for compliance with IRS regulations and for ensuring that shareholders receive the correct tax treatment on their income from the corporation.
Form 1120-S
U.S. Income Tax Return for an S Corporation
OMB No. 1545-0123
▶ Do not file this form unless the corporation has filed or
2021
Department of the Treasury
is attaching Form 2553 to elect to be an S corporation.
Internal Revenue Service
▶ Go to www.irs.gov/Form1120S for instructions and the latest information.
For calendar year 2021 or tax year beginning
, 2021, ending
, 20
A S election effective date
Name
D Employer identification number
TYPE
B
Business activity code
Number, street, and room or suite no. If a P.O. box, see instructions.
E Date incorporated
OR
number (see instructions)
PRINT
City or town, state or province, country, and ZIP or foreign postal code
F Total assets (see instructions)
C Check if Sch. M-3 attached
$
G Is the corporation electing to be an S corporation beginning with this tax year? See instructions.
Yes
No
H
Check if: (1) Final return
(2) Name change (3) Address change
(4) Amended return (5)
S election termination
I
Enter the number of shareholders who were shareholders during any part of the tax year
. . . ▶
J
Check if corporation: (1)
Aggregated activities for section 465 at-risk purposes
(2) Grouped activities for section 469 passive activity purposes
Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.
Tax and Payments Deductions (see instructions for limitations) Income
1a
Gross receipts or sales
b
Returns and allowances
1b
c
Balance. Subtract line 1b from line 1a
. . . . . . . .
1c
2
Cost of goods sold (attach Form 1125-A)
3
Gross profit. Subtract line 2 from line 1c
4
Net gain (loss) from Form 4797, line 17 (attach Form 4797)
5
Other income (loss) (see instructions—attach statement)
6
Total income (loss). Add lines 3 through 5
. . . .
.
. .
▶
7
Compensation of officers (see instructions—attach Form 1125-E) . . .
8
Salaries and wages (less employment credits)
9
Repairs and maintenance
10
Bad debts
11
Rents
12
Taxes and licenses
13
Interest (see instructions)
14
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562)
15
Depletion (Do not deduct oil and gas depletion.)
16
Advertising
17
Pension, profit-sharing, etc., plans
18
Employee benefit programs
19
Other deductions (attach statement)
20
Total deductions. Add lines 7 through 19
21
Ordinary business income (loss). Subtract line 20 from line 6 . . . .
22a
Excess net passive income or LIFO recapture tax (see instructions) . . .
Tax from Schedule D (Form 1120-S)
22b
Add lines 22a and 22b (see instructions for additional taxes)
22c
23a
2021 estimated tax payments and 2020 overpayment credited to 2021 .
Tax deposited with Form 7004
23b
Credit for federal tax paid on fuels (attach Form 4136)
23c
d
Add lines 23a through 23c
23d
24
Estimated tax penalty (see instructions). Check if Form 2220 is attached .
. ▶
25
Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . . .
26
Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . . .
27
Enter amount from line 26: Credited to 2022 estimated tax ▶
Refunded ▶
Sign Here
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, 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
with the preparer shown below?
Signature of officer
Date
Title
See instructions.
Paid
Print/Type preparer’s name
Preparer’s signature
Check
if
PTIN
Preparer
self-employed
Firm’s name ▶
Firm’s EIN ▶
Use Only
Firm’s address ▶
Phone no.
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 11510H
Form 1120-S (2021)
Page 2
Schedule B
Other Information (see instructions)
1 Check accounting method: a
Cash
Accrual
c Other (specify) ▶
2 See the instructions and enter the:
a Business activity ▶
b Product or service ▶
3At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation . .
4At 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 stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v)
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes No
(i)Name of Corporation
(ii)Employer Identification
Number (if any)
(iii)Country of Incorporation
(iv)Percentage of Stock Owned
(v)If Percentage in (iv) Is 100%, Enter the Date (if applicable) a Qualified Subchapter
S Subsidiary Election Was Made
bOwn directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital 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 (v) below . . . . . . .
(i)Name of Entity
(iii)Type of Entity
(iv)Country of Organization
(v)Maximum Percentage Owned in Profit, Loss, or Capital
5a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . . .
If “Yes,” complete lines (i) and (ii) below.
(i)
Total shares of restricted stock
(ii)
Total shares of non-restricted stock
bAt the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments? . If “Yes,” complete lines (i) and (ii) below.
Total shares of stock outstanding at the end of the tax year
(ii)Total shares of stock outstanding if all instruments were executed ▶
6Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction?
. . . . . . . . . . . . . . . . . . . . . . . .
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.
8If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation, and
(b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in
gain reduced by net recognized built-in gain from prior years. See instructions . . . . . . ▶ $
9Did 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 . . . . . . . . . . . . . . . . . . . . . . . .
10 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.
11 Does the corporation satisfy both of the following conditions? . . . . . . . . . . . . . . . . . .
aThe corporation’s total receipts (see instructions) for the tax year were less than $250,000.
bThe corporation’s total assets at the end of the tax year were less than $250,000. If “Yes,” the corporation is not required to complete Schedules L and M-1.
Page 3
Other Information (see instructions) (continued)
12During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the
terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . .
If “Yes,” enter the amount of principal reduction . . . . . . . . . . . . . . ▶ $
13During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions .
14a Did the corporation make any payments in 2021 that would require it to file Form(s) 1099?
If “Yes,” did the corporation file or will it file required Form(s) 1099?
Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?
If “Yes,” enter the amount from Form 8996, line 15
. . . . ▶ $
Schedule K
Shareholders’ Pro Rata Share Items
Total amount
1
Ordinary business income (loss) (page 1, line 21)
. . . . . .
Net rental real estate income (loss) (attach Form 8825)
3a
Other gross rental income (loss)
Expenses from other rental activities (attach statement)
3b
Other net rental income (loss). Subtract line 3b from line 3a . . .
3c
(Loss)
Interest income
Dividends: a Ordinary dividends
5a
Income
b Qualified dividends
5b
Royalties
Net short-term capital gain (loss) (attach Schedule D (Form 1120-S))
8a
Net long-term capital gain (loss) (attach Schedule D (Form 1120-S)) .
Collectibles (28%) gain (loss)
8b
Unrecaptured section 1250 gain (attach statement)
8c
Net section 1231 gain (loss) (attach Form 4797)
Other income (loss) (see instructions) . . .
Type ▶
Deductions
Section 179 deduction (attach Form 4562)
12a
Charitable contributions
Investment interest expense
12b
Section 59(e)(2) expenditures
12c
Other deductions (see instructions) . . . .
12d
13a
Low-income housing credit (section 42(j)(5))
Low-income housing credit (other)
13b
Credits
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable)
13c
Other rental real estate credits (see instructions)
13d
e
Other rental credits (see instructions) . . .
13e
f
Biofuel producer credit (attach Form 6478)
13f
g
Other credits (see instructions)
13g
International Transactions
Attach Schedule K-2 (Form 1120-S), Shareholders’ Pro Rata Share Items—International, and
check this box to indicate you are reporting items of international tax relevance . . .
Alternative MinimumTax Items(AMT)
15a
Post-1986 depreciation adjustment
Adjusted gain or loss
15b
Depletion (other than oil and gas)
15c
Oil, gas, and geothermal properties—gross income
15d
Oil, gas, and geothermal properties—deductions
15e
Other AMT items (attach statement)
15f
ItemsAffecting ShareholderBasis
16a
Tax-exempt interest income
Foreign taxes paid or accrued
16f
Other tax-exempt income
16b
Nondeductible expenses
16c
Distributions (attach statement if required) (see instructions) . . .
16d
Repayment of loans from shareholders
16e
Page 4
Shareholders’ Pro Rata Share Items (continued)
Information
17a
Investment income
Other
Other items and amounts (attach statement)
Investment expenses
17b
Dividend distributions paid from accumulated earnings and profits
17c
Recon-
ciliation
Income (loss) reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the result, subtract the sum of the amounts on lines 11 through 12d and 16f .
Schedule L
Balance Sheets per Books
Beginning of tax year
End of tax year
Assets
(a)
(b)
(c)
(d)
2a
Trade notes and accounts receivable . . .
Less allowance for bad debts
(
)
Inventories
U.S. government obligations
Tax-exempt securities (see instructions) . .
Other current assets (attach statement) . . .
Loans to shareholders
Mortgage and real estate loans
Other investments (attach statement) . . .
10a
Buildings and other depreciable assets . . .
Less accumulated depreciation
11a
Depletable assets
Less accumulated depletion
Land (net of any amortization)
Intangible assets (amortizable only) . . . .
Less accumulated amortization
Other assets (attach statement)
Total assets
Liabilities and Shareholders’ Equity
Accounts payable
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . .
Loans from shareholders
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
22
Capital stock
23
Additional paid-in capital
Retained earnings
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock
Total liabilities and shareholders’ equity . .
Page 5
Schedule M-1
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note: The corporation may be required to file Schedule M-3. See instructions.
Net income (loss) per books . . . .
Income recorded on books this year
Income included on Schedule K, lines 1, 2,
not included on Schedule K, lines 1
through 10 (itemize):
3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded
on books this year (itemize)
a
Tax-exempt interest $
Expenses recorded on books this year
Deductions included on Schedule K,
lines 1 through 12 and 16f, not charged
through 12 and 16f (itemize):
against book income this year (itemize):
Depreciation $
Travel and entertainment $
Add lines 5 and 6
8 Income (loss) (Schedule K, line 18).
Add lines 1 through 3
Subtract line 7 from line 4 . . . .
Schedule M-2
Analysis of Accumulated Adjustments Account, Shareholders’ Undistributed Taxable Income
Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account
(see instructions)
(a) Accumulated
(b) Shareholders’
(c) Accumulated
(d) Other adjustments
adjustments account
undistributed taxable
earnings and profits
account
income previously taxed
Balance at beginning of tax year
Ordinary income from page 1, line 21 . . .
Other additions
Loss from page 1, line 21
Other reductions
Combine lines 1 through 5
Distributions
Balance at end of tax year. Subtract line 7 from
line 6
Completing the Federal Supporting form requires careful attention to detail. Follow these steps to ensure that all necessary information is accurately provided. After filling out the form, you will need to review it for completeness before submitting it to the appropriate authorities.
Form 1120-S is the U.S. Income Tax Return specifically designed for S Corporations. This form allows S Corporations to report their income, deductions, and other tax-related information to the IRS. It's important to note that only corporations that have filed Form 2553 to elect S Corporation status should use this form.
Only corporations that have elected to be treated as S Corporations for tax purposes need to file this form. This election must be made using Form 2553. If your corporation has not made this election, you should not file Form 1120-S.
The due date for Form 1120-S is typically the 15th day of the third month after the end of the corporation's tax year. For most S Corporations that operate on a calendar year, this means the form is due on March 15 of the following year. If additional time is needed, you can file Form 7004 to request an extension.
To complete Form 1120-S, you will need various pieces of information, including:
Form 1120-S consists of several key sections:
If your S Corporation has no income, you are still required to file Form 1120-S. It’s important to report the corporation's financial activities, even if they result in a net loss. This ensures compliance with IRS regulations.
Yes, you can e-file Form 1120-S through approved e-file providers. E-filing can be a convenient option as it allows for quicker processing and confirmation of receipt by the IRS.
If you miss the filing deadline for Form 1120-S, your corporation may face penalties. The IRS typically imposes a penalty for late filing, which can add up quickly. If you find yourself in this situation, it’s advisable to file as soon as possible to minimize penalties.
For more detailed instructions and the latest updates regarding Form 1120-S, you can visit the IRS website at www.irs.gov/Form1120S. This site provides comprehensive resources to assist you in completing the form correctly.
Filling out the Federal Supporting Form, specifically Form 1120-S, can be a complex task. Many individuals make common mistakes that can lead to delays or issues with their tax filings. One frequent error is failing to check the box indicating whether the corporation is electing to be an S corporation for the tax year. This is crucial as it affects the corporation's tax status.
Another mistake is not providing complete and accurate information regarding the corporation’s name and employer identification number (EIN). Omitting this information or making typographical errors can result in significant complications. Additionally, many people overlook the importance of entering the correct business activity code. This code helps categorize the corporation’s business for tax purposes.
Many filers also neglect to attach necessary schedules, such as Schedule M-3, when required. This can lead to a rejection of the form or additional inquiries from the IRS. Furthermore, underreporting or overreporting income on lines 1a through 21 is a common issue. It is essential to accurately calculate and report gross receipts, cost of goods sold, and other income to avoid discrepancies.
Another common pitfall is miscalculating deductions. It is crucial to understand the limitations on deductions and to attach any required statements or forms, such as Form 1125-A for cost of goods sold. Failing to do so can result in disallowed deductions and potential penalties.
Many individuals also forget to sign and date the form. The declaration under penalties of perjury is a vital component of the submission. Without a signature, the IRS may not process the return. Additionally, some filers do not keep copies of their completed forms, which is important for record-keeping and future reference.
Lastly, not being aware of the deadlines for filing Form 1120-S can lead to late submissions and penalties. Understanding the timeline for filing and any extensions is essential for compliance. By avoiding these common mistakes, individuals can ensure a smoother process when completing their Federal Supporting Form.
The Federal Supporting Form, specifically Form 1120-S, is used by S Corporations to report income, deductions, and other financial information to the Internal Revenue Service (IRS). In addition to this form, several other documents are commonly utilized to support the filing process and ensure compliance with tax regulations.
These forms and schedules play a crucial role in the tax reporting process for S Corporations, ensuring that all necessary information is submitted to the IRS and that shareholders receive the correct information for their personal tax filings.
The Federal Supporting form is similar to several other documents that serve various purposes in corporate taxation and financial reporting. Here are seven documents that share similarities with the Federal Supporting form:
When filling out the Federal Supporting Form, there are important guidelines to follow. Here’s a concise list of what to do and what to avoid:
This form is required for S Corporations of all sizes that have elected to be taxed as such. Smaller corporations must also file if they meet the criteria.
All S Corporations must file Form 1120-S regardless of their size, provided they have elected S Corporation status.
Certain schedules and forms, such as Form 2553 for the S election, must be attached to the filing if applicable.
Both income and losses must be reported. Accurate reporting of all financial activities is crucial for compliance.
All shareholders must be reported on the form, regardless of whether there have been changes during the tax year.
Form 1120-S is specifically designed for S Corporations and has different requirements than Form 1120, which is for C Corporations.
A signature from an officer of the corporation is required, affirming the accuracy of the information provided.
The IRS thoroughly reviews all submitted forms for accuracy and compliance, and errors can lead to penalties.
Corporations can file an amended return if they discover errors after submission, following the proper procedures outlined by the IRS.
Form 1120-S is the U.S. Income Tax Return specifically for S Corporations. Ensure that your corporation has filed or is attaching Form 2553 to elect S Corporation status.
Do not submit Form 1120-S unless your corporation qualifies as an S Corporation. Review the eligibility requirements carefully.
Provide accurate information regarding the corporation's name, Employer Identification Number (EIN), and business activity code. This information is crucial for proper identification.
Check the appropriate boxes to indicate if the return is final, if there has been a name or address change, or if it is an amended return.
Report only trade or business income and expenses on the lines specified. Follow the instructions closely to avoid errors.
Calculate total income and deductions accurately. This will affect the reported ordinary business income or loss.
Be mindful of any additional taxes that may apply, such as excess net passive income or LIFO recapture tax.
Ensure that all required schedules, such as Schedule M-3, are attached if necessary. Missing schedules can lead to processing delays.
Sign and date the return. The declaration under penalties of perjury confirms the accuracy of the information provided.