How to Fill Out 1120 Forms

All the new business owners need to hear this out - Form 1120 is your sheet for the income tax returns you are liable to pay with all the credits, deductions, losses, gains, and incomes laid out in the open.

Doing business may not be as black and white as some of you may have thought it to be. However, taxes are. There’s nothing hidden under the lines, every credit, profit, and loss is to be written down to pay your share of the taxes and then receive the tax returns.

In order to do so, you need to fill the Form 1120, the US corporate income tax return. It’s helpful to find out how much income needs to be paid by the corporations. You need to follow the instruction for Form 1120 as per the following details.

Types of Corporations

Since there are different types of corporations, there are special forms for each type like

• • 1120-C: cooperative associations, such as farmers’ cooperatives

  • 1120-F: foreign corporations

  • 1120-H: condominium management, residential real estate management, timeshare association that elects to be treated as a homeowners association

  • 1120-L: life insurance companies

  • 1120-POL: political organizations

  • 1120-S: S corporations

When to File Form 1120?

By April 15, every corporation is bound to file their income tax return. Even if your corporation is new and didn’t have an entire year, however short or long the tenure, you’d still need to file for the taxes.

In case your corporation’s fiscal year ends on June 30, you will have to file the taxes by March 15. If the due dates fall on weekends then the date is expended to the next business day.

Prepare for Form 1120 to File Taxes

You have two choices either to prepare your own corporate tax returns or use a tax software program but it’s for the best to have a professional accountant take a look at the taxes before you can file them.

So how to fill the form? What you will need for the completion of Form 1120?

Start with the basic information like the;

• Corporations name

• Corporations address

• Employer ID (EIN)

• Date of incorporation

• Total assets

Your financial officer needs to have all the required information about your assets. For this purpose, they will require the Corporate income details that will include

• Gross receipts

• Costs of goods sold

• Dividends

• Interests

• Rents

• Royalties

• Capital gains

According to the detailed instruction for Form 1120, you will not require to provide the deductions but you do need to give proof of the expenditures if an audit is to take place like

• Offer compensation

• Other salaries

• Repairs and Maintenance

• Bad debts (if any)

• Depreciation

• Advertising

• Pension

• Employee benefit program

• Domestic production activities

Each deduction will require a separate schedule. So your corporation’s accounts or financial officer need to collect the above-mentioned information about the due taxes that also includes refundable credits and tax payments.

It is highly preferable to e-file Form 1120 or you can mail it to the address mentioned on the IRS website. But the location must be within the state you are currently doing business in. For further guidelines, it’s best to consult a tax consultant.