What is a Form 1120 and Why should I be bothered?

Form 1120, U.S. Corporation Income Tax Return is used to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation. Unless exempt under section 501, all domestic corporations must file an income tax return whether or not they have taxable income. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return. 

Generally, only a corporation files an 1120 form however, an LLC can file this form if it has filed Form 8832 to elect to be treated as an association taxable as a corporation.Corporations can generally electronically file Form 1120, related forms, schedules, and attachments. If there is a balance due, the corporation can authorize an electronic funds withdrawal while e-filing. The option to e-file does not, however, apply to certain returns.

Information needed to file Form 1120 include:

1. Gross receipts or sales.
2. Cost of Goods Sold
3. Compensation of Officers
4. Salaries and Wages
5. Rent
6. Taxes and Licenses
7. Charitable Contributions
8. Depreciation

Who signs this form?

The return must be signed and dated by one of the following officers: president, vice president, treasurer, assistant treasurer, chief accounting officer; or any other corporate officer (such as tax officer) authorized to sign. If an employee of the corporation completes Form 1120, the paid preparer space should remain blank. Anyone who prepares Form 1120 but does not charge the corporation should not complete this section. Generally, anyone who is paid to prepare the return must sign it and fill in the “Paid Preparer Use Only” area.

If a return is filed on behalf of a corporation by a receiver, trustee, or assignee, the fiduciary must sign the return, instead of the corporate officer. Returns and forms signed by a receiver or trustee in bankruptcy on behalf of a corporation must be accompanied by a copy of the order or instructions of the court authorizing signing of the return or form.

Form 1120 Deadline

Generally, a corporation must file its income tax return by the 15th day of the 4th month after the end of its tax year. A new corporation filing a short-period return must generally file by the 15th day of the 4th month after the short period ends. A corporation that has dissolved must generally file by the 15th day of the 4th month after the date it dissolved. However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year. A corporation with a short tax year ending anytime in June will be treated as if the short year ended on June 30, and must file by the 15th day of the 3rd month after the end of its tax year. If the due date falls on a Saturday, Sunday, or legal holiday, the corporation can file on the next business day.

Extension of Time To File

File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an extension of time to file. Generally, the corporation must file Form 7004 by the regular due date of the return.

Tax Payments

Generally, the corporation must pay any tax due in full no later than the due date for filing its tax return (not including extensions). If the due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day.

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