Form 1120S

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Definition of 'Form 1120S'

The Form 1120S is an annual tax return used by small businesses that are organized as S corporations. S corporations are pass-through entities, which means that their income is not taxed at the corporate level. Instead, the income is passed through to the shareholders, who report it on their personal tax returns.

The Form 1120S is used to report the income, deductions, and credits of an S corporation. The form also includes information about the shareholders, such as their names, addresses, and Social Security numbers.

The due date for the Form 1120S is March 15th of the following year. However, S corporations that have a fiscal year that ends on a date other than December 31st may be able to file their return later.

The Form 1120S is a relatively simple form to complete. However, there are a few things that S corporations should keep in mind when filing their return. First, S corporations must make sure that they have timely filed all of their quarterly estimated taxes. Second, S corporations must make sure that they have properly allocated their income and deductions among the shareholders. Third, S corporations must make sure that they have properly claimed all of the available deductions and credits.

If an S corporation has any questions about the Form 1120S, they should consult with a tax professional.

In addition to the Form 1120S, S corporations may also be required to file other forms, such as the Schedule K-1, which is a statement that is sent to each shareholder that shows their share of the S corporation's income, deductions, and credits.

The Form 1120S is an important document for S corporations. By filing the Form 1120S correctly, S corporations can ensure that they are properly reporting their income and deductions and that they are taking advantage of all of the available deductions and credits.

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