Form 1120-S is the federal tax return filed by S corporations to report income, deductions, credits, and other financial activity to the Internal Revenue Service (IRS).
Unlike C corporations, S corporations generally do not pay federal income tax at the corporate level. Instead, income and losses “pass through” to shareholders, who report them on their individual tax returns.
Form 1120-S must be filed by:
- Corporations that have elected S corporation status
- LLCs that elected to be taxed as an S corporation
- Domestic entities meeting IRS S corporation eligibility requirements
Even if the S corporation had no income, filing is typically required.
The form provides a complete overview of the company’s financial activity, including:
- Gross receipts or sales
- Cost of goods sold
- Compensation of officers
- Salaries and wages
- Rent, taxes, and business expenses
- Depreciation and amortization
- Ordinary business income (or loss)
- Separately stated items (interest income, charitable contributions, capital gains, etc.)