{"id":28066,"date":"2024-02-26T17:19:58","date_gmt":"2024-02-26T17:19:58","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=business-glossary&#038;p=28066"},"modified":"2025-04-24T14:06:10","modified_gmt":"2025-04-24T14:06:10","slug":"form-1120-s","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/us\/business-glossary\/form-1120-s\/","title":{"rendered":"Form 1120-S"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>Definition<\/strong><\/h3>\n\n\n\n<p>Form 1120-S is a tax form used by <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/s-corporation\/\">S-corporations<\/a> to report their income, deductions, gains, losses, and other financial information to the Internal Revenue Service (IRS).\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is a Form 1120-S?<\/strong><\/h3>\n\n\n\n<p>The primary purpose of Form 1120-S is to report the income, deductions, and other financial information of S-corporations for the tax year. S-corporations are &#8220;pass-through&#8221; entities, meaning that the corporation itself does not pay federal income tax. Instead, the corporation&#8217;s income or loss is passed through to its shareholders, who report their share of the income or loss on their individual tax returns.<\/p>\n\n\n\n<p>S corporations must file Form 1120-S if they meet certain criteria, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Being classified as an S-corporation for federal tax purposes.<\/li>\n\n\n\n<li>Having income, deductions, or losses to report for the tax year.<\/li>\n\n\n\n<li>Having less than 100 shareholders.<\/li>\n\n\n\n<li>Having only eligible shareholders, including individuals, certain trusts, and certain exempt organizations.<\/li>\n<\/ul>\n\n\n\n<p>While S-corporations do not pay federal income tax at the entity level, they are required to report their income, deductions, gains, losses, and other financial information on Form 1120-S and provide each shareholder with a <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/schedule-k-1\/\">Schedule K-1<\/a>. The Schedule K-1 reports each shareholder&#8217;s share of the corporation&#8217;s income, deductions, <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/tax-credit\/\">credits<\/a>, and other tax items, which the shareholder must report on their individual tax return.<\/p>\n\n\n\n<p>Form 1120-S is typically due on March 15th each year. If that date falls on a weekend or holiday, the deadline may shift to the next business day. Failure to timely file Form 1120-S or accurately report the corporation&#8217;s income and other financial information may result in penalties imposed by <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/internal-revenue-service\/\">the IRS<\/a>.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Form 1120-S vs. Form 1120<\/h5>\n\n\n\n<p>IRS Forms 1120 and 1120-S are both used for tax reporting by corporations, but they cater to different types. Form 1120 is for <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/c-corporation\/\">C-corporations<\/a>, covering income tax returns and deductions. In contrast, Form 1120-S is for S-corporations, where income, losses, deductions, and credits are passed through to shareholders for reporting on their individual tax returns. <\/p>\n\n\n\n<p>Both forms require accurate financial reporting and compliance with IRS regulations, tailored to the specific corporate structure and tax requirements of C-corporations and S-corporations, respectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Example of a Form 1120-S<\/strong><\/h3>\n\n\n\n<p>XYZ Corporation is an S-corporation engaged in the business of providing IT consulting services. At the end of its tax year, XYZ Corporation is required to file Form 1120-S to report its income, deductions, and other financial information to the IRS.<\/p>\n\n\n\n<p>The corporation gathers its financial records for the tax year, including <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/income-statement\/\">income statements<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/balance-sheet\/\">balance sheets<\/a>, and records of deductible expenses. Using this information, XYZ Corporation&#8217;s tax preparer completes Form 1120-S.<\/p>\n\n\n\n<p>Once completed, Form 1120-S is filed electronically with the IRS. By timely filing Form 1120-S, XYZ Corporation ensures compliance with federal tax laws and fulfills its reporting obligations to the IRS.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-28066","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Definition Form 1120-S is a tax form used by S-corporations to report their income, deductions, gains, losses, and other financial information to the Internal Revenue Service (IRS).\u00a0 What is a Form 1120-S? The primary purpose of Form 1120-S is to report the income, deductions, and other financial information of S-corporations for the tax year. S-corporations are &#8220;pass-through&#8221; entities, meaning that the corporation itself does not pay federal income tax. Instead, the corporation&#8217;s income or loss is passed through to its shareholders, who report their share of the income or loss on their individual tax returns. S corporations must file Form&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/28066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=28066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}