Running an S corporation comes with a filing responsibility that cannot be ignored. Even if the business is small, inactive for part of the year, or expects to owe no federal income tax, it generally must file Form 1120-S for each tax year its S election remains in effect.<\/p>\n
This guide to Form 1120-S focuses on the practical points business owners and tax preparers need most: who files the return, when Form 1120-S is due, what happens if it is late, and how to extend Form 1120-S using Form 7004.<\/p>\n
IRS Form 1120-S, U.S. Income Tax Return for an S Corporation, is the federal income tax return filed by an S corporation. It reports the company\u2019s income, deductions, gains, losses, credits, and other tax items for the year.<\/p>\n
An S corporation is usually classified as a pass-through entity for federal income tax purposes. This means the corporation usually does not pay regular federal income tax on business income at the entity level. Instead, income, deductions, credits, and other items pass through to shareholders.<\/p>\n
The S corporation also prepares Schedule K-1 for each shareholder. The schedule shows the shareholder\u2019s share of the corporation\u2019s income, deductions, credits, and other tax items. The shareholder then uses that information to prepare the shareholder\u2019s own tax return.<\/p>\n
| Form 1120-S item<\/th>\n | What it means<\/th>\n<\/tr>\n<\/thead>\n | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Filed by<\/td>\n | Domestic corporations and other eligible entities with an S election in effect<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||
| Reports<\/td>\n | Business income, deductions, gains, losses, credits, and tax items<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||
| Shareholder reporting<\/td>\n | Schedule K-1 is generally issued to each shareholder<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||
| Extension form<\/td>\n | Form 7004<\/td>\n<\/tr>\n | ||||||||||||||||||||||||||
| Main due date rule<\/td>\n | 15th day of the 3rd month after the tax year ends<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nWho Files Form 1120-S?<\/h2>\nA corporation or eligible entity generally files Form 1120-S when it has elected S corporation status by filing Form 2553, the IRS accepted that election, and the election is still in effect.<\/p>\n This can include corporations and eligible LLCs that elected S corporation tax treatment. The entity generally must continue filing Form 1120-S while its S election is in effect, even if it had little or no revenue, made no profit, or had limited business activity during the year.<\/p>\n Special care is needed if the S corporation closed, dissolved, revoked its S election, lost eligibility, or changed tax status during the year. Depending on what occurred and when, the entity may need to file a short-year or final return and determine which tax status applies to each part of the year.<\/p>\n When Is Form 1120-S Due?<\/h2>\nThe Form 1120-S due date is generally the 15th day of the 3rd month after the S corporation\u2019s tax year ends. For a calendar-year S corporation, the regular deadline is usually March 15.<\/p>\n If the due date falls on a Saturday, Sunday, or legal holiday, the deadline usually moves to the next business day.<\/p>\n
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