IRS Form 1120S is a tax form used by small business owners who operate their business as a S corporation. This form is used to report the income, deductions, and credits of an S corporation to the Internal Revenue Service (IRS). In this article, we will discuss who needs to use Form 1120S, where to get it, how to use it, and answer some common questions related to this form.
Who Needs to Use Form 1120S?
Form 1120S is used by small business owners who operate their business as a S corporation. S corporations are unique in that they provide the liability protection of a corporation while being taxed like a partnership. To qualify as an S corporation, the business must meet certain requirements set forth by the IRS.
Where to Get Form 1120S?
Form 1120S can be obtained from the IRS website or by visiting your local IRS office. The form can also be obtained from a tax professional or tax software program.
How to Use Form 1120S?
To use Form 1120S, you will need to provide information about your S corporation, including its income, deductions, and credits. You will also need to provide information about the shareholders of the S corporation, including their names and Social Security numbers. Once the form is completed, you should mail it to the address listed on the form or bring it to your local IRS office.
Common Questions About Form 1120S
When is Form 1120S Due?
Form 1120S is due by the 15th day of the third month after the close of the tax year. For example, if the tax year ended on December 31st, the form is due by March 15th.
What happens if I don’t file Form 1120S on time?
If you don’t file Form 1120S on time, you may be subject to penalties and interest. Additionally, if you don’t file Form 1120S for three consecutive years, your S corporation status may be revoked.
How often do I need to file Form 1120S?
You need to file Form 1120S annually.
Can I get an extension to file Form 1120S?
Yes, you can get an extension to file Form 1120S by filing Form 7004. However, this extension only extends the time to file the form and does not extend the time to pay any taxes owed.
Consult A Professional With Questions
In conclusion, IRS Form 1120S is an important form for small business owners who operate their business as an S corporation. By using Form 1120S, you can report your S corporation’s income, deductions, and credits to the IRS. It is important to file this form on time to avoid penalties and interest and to maintain your S corporation status. If you have any questions or need help completing this form, it is recommended that you consult a tax professional.
If you have questions about IRS payments or debt, particularly if this exceeds $10,000 in IRS debt, you should consider contacting one of our Tax Specialists today.
