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Free IRS 1120 Template

The IRS 1120 form is a tax return used by corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service. This form is essential for C corporations as it helps determine their tax liability for the year. Understanding how to properly complete and file the 1120 can significantly impact a corporation's financial standing.

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The IRS 1120 form plays a crucial role in the financial landscape for corporations operating in the United States. This form is primarily used by C corporations to report their income, gains, losses, deductions, and credits to the Internal Revenue Service. It serves as a comprehensive overview of a corporation's financial performance over the tax year. By completing the 1120, corporations not only fulfill their tax obligations but also provide essential information that can affect their tax liabilities and potential refunds. Key components of the form include sections for reporting revenue, cost of goods sold, and various deductions, such as operating expenses and taxes. Additionally, corporations must disclose their tax liability, which is calculated based on the taxable income reported. Understanding the intricacies of the IRS 1120 form is vital for corporate compliance, as errors or omissions can lead to penalties or audits. Therefore, navigating this form with care is essential for any corporation aiming to maintain good standing with tax authorities.

Key takeaways

Filling out the IRS 1120 form is an important task for corporations. Here are some key takeaways to consider:

Ensure that you have all necessary financial documents ready, including income statements, balance sheets, and receipts.
Double-check that your corporation's name and Employer Identification Number (EIN) are correctly entered at the top of the form.
Understand the different sections of the form, such as income, deductions, and tax credits, to accurately report your corporation's financial activity.
Be aware of the deadlines for filing the form to avoid penalties. Generally, the form is due on the 15th day of the fourth month after the end of your corporation's tax year.
Consider consulting with a tax professional if you encounter complex issues or have questions about specific deductions.
Keep copies of the completed form and all supporting documents for your records, as the IRS may request them in the future.
Review the IRS instructions for Form 1120 thoroughly to ensure compliance with current tax laws and regulations.

Dos and Don'ts

When filling out the IRS 1120 form, it's important to get it right. Here are ten essential do's and don'ts to keep in mind.

Do double-check all your information for accuracy.
Do use the most current version of the form.
Do ensure you have all necessary supporting documents ready.
Do report all income earned by the corporation.
Do sign and date the form before submitting it.

Don't forget to include your Employer Identification Number (EIN).
Don't leave any sections blank; if not applicable, write "N/A."
Don't use pencil; always fill out the form in ink or electronically.
Don't underestimate your deductions; ensure you claim all eligible expenses.
Don't wait until the last minute to file; plan ahead to avoid penalties.

By following these guidelines, you can help ensure a smoother filing process for your corporation.

Documents used along the form

The IRS Form 1120 is a crucial document for corporations in the United States, as it reports income, gains, losses, deductions, and credits. However, several other forms and documents often accompany this form to provide a complete picture of a corporation's financial activities. Below is a list of commonly used forms that may be required alongside the IRS Form 1120.

Schedule C: This schedule is used to report the corporation's income and expenses from its business activities. It provides detailed information about the sources of income and the costs incurred in generating that income.
Schedule G: This form is necessary for corporations that have shareholders or members. It outlines the ownership structure and details about the shareholders, including their share of ownership and any distributions made during the year.
W-9 Form: This form is crucial for entities that need to provide their taxpayer identification information. Completing the W-9 helps ensure accurate tax reporting and compliance with IRS regulations. For templates, you can find one at Fast PDF Templates.
Form 941: This is the Employer's Quarterly Federal Tax Return. It reports payroll taxes withheld from employees and the employer's share of Social Security and Medicare taxes. It is essential for corporations with employees to ensure compliance with tax obligations.
Form 4562: Used to claim depreciation and amortization, this form helps corporations deduct the cost of their assets over time. This deduction can significantly reduce taxable income, making it an important document for financial reporting.
Form 1125-A: This form is used to report the cost of goods sold (COGS). It details the direct costs associated with producing the goods sold by the corporation, which is crucial for calculating gross profit.

Each of these forms plays a vital role in ensuring that a corporation complies with tax regulations and accurately reports its financial activities. By understanding these documents, corporations can better navigate their tax responsibilities and maintain good standing with the IRS.

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Things to Know About This Form

What is the IRS Form 1120?

The IRS Form 1120 is the U.S. Corporation Income Tax Return. Corporations use this form to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS). It is essential for C corporations, which are taxed separately from their owners, to file this form annually.

Who needs to file Form 1120?

Generally, any corporation that is recognized as a C corporation must file Form 1120. This includes:

Domestic corporations operating in the United States.
Foreign corporations that have income effectively connected with a U.S. trade or business.
Corporations that have elected to be treated as C corporations for tax purposes.

When is Form 1120 due?

Form 1120 is typically due on the 15th day of the fourth month after the end of the corporation's tax year. For most corporations that operate on a calendar year, the due date is April 15. However, if the due date falls on a weekend or holiday, the deadline is extended to the next business day.

What information is required on Form 1120?

Form 1120 requires various pieces of information, including:

Basic information about the corporation, such as its name, address, and Employer Identification Number (EIN).
Income details, including gross receipts and other income sources.
Deductions, such as salaries, rents, and other business expenses.
Tax computation, which includes calculating the corporate tax liability.

Can Form 1120 be filed electronically?

Yes, Form 1120 can be filed electronically. The IRS provides e-filing options through authorized e-file providers. Electronic filing is often faster and can result in quicker processing times for refunds.

What happens if a corporation fails to file Form 1120?

If a corporation fails to file Form 1120 on time, it may face penalties. The IRS typically imposes a penalty for each month the return is late, up to a maximum amount. Additionally, interest may accrue on any unpaid taxes. It is crucial for corporations to file timely to avoid these consequences.

Where can I find more information about Form 1120?

For more detailed information, the IRS website provides resources and instructions for Form 1120. Additionally, consulting a tax professional can help clarify specific questions or concerns regarding corporate tax obligations.

Preview - IRS 1120 Form

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)

Document Specifics

Fact Name	Description
Purpose	The IRS Form 1120 is used by corporations to report their income, gains, losses, deductions, and credits, and to calculate their federal income tax liability.
Filing Requirement	Corporations must file Form 1120 annually, regardless of whether they owe taxes. This includes both domestic and foreign corporations operating in the U.S.
Due Date	The form is typically due on the 15th day of the fourth month after the end of the corporation's tax year. For most corporations, this means April 15 for a calendar year.
State-Specific Forms	Many states require their own corporate tax forms. For example, California requires Form 100, governed by the California Revenue and Taxation Code.
Penalties	If a corporation fails to file Form 1120 on time, it may face penalties. These can include fines and interest on any unpaid taxes.

How to Fill Out IRS 1120

Filling out the IRS 1120 form can seem daunting, but with a clear plan, you can tackle it step by step. This form is essential for corporations to report their income, gains, losses, deductions, and credits. Let’s break down the process so you can complete it with confidence.

Gather all necessary financial documents, including income statements, balance sheets, and any other relevant financial records.
Start with the basic information at the top of the form. Fill in your corporation's name, address, and Employer Identification Number (EIN).
Enter the date of incorporation and the total assets at the end of the tax year.
Report your corporation's income. This includes gross receipts or sales, returns and allowances, and other income sources.
Calculate your total income by adding up all income sources. Transfer this amount to the appropriate line on the form.
Deduct any allowable expenses. This can include salaries, rent, and other business expenses. List these deductions clearly.
Determine your taxable income by subtracting your total deductions from your total income. Fill in this amount on the form.
Calculate your tax liability based on the taxable income. Use the current corporate tax rate to find the amount owed.
Complete any additional schedules required, such as Schedule C for dividends or Schedule J for tax computation.
Review the entire form for accuracy. Ensure all figures are correct and all necessary sections are completed.
Sign and date the form. If someone else prepared it, they should also sign it.
Submit the form to the IRS by the due date, either electronically or via mail, depending on your preference.

Once you have completed these steps, you will have successfully filled out the IRS 1120 form. Remember to keep a copy for your records and stay organized for future tax filings!

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Document Specifics

How to Fill Out IRS 1120