What IRS Form 1120 (2017) Is For
IRS Form 1120 (2017) is the U.S. Corporation Income Tax Return used by C corporations to report income, deductions, gains, losses, and refundable credits for federal income tax purposes. The Internal Revenue Service requires corporations to file this form each tax year to calculate and report any tax owed. Unlike individual taxpayers, corporations pay taxes directly, and Form 1120 determines their total income tax liability.
All domestic corporations, including those in bankruptcy, are required to file unless they qualify for an exemption or are eligible to use an alternative return, such as Form 1120-S. Corporations should file their tax return accurately to avoid IRS penalties, including the late filing penalty and the failure-to-file penalty.
When You’d Use Form 1120 for 2017 (Late or Amended Filing)
You should file IRS Form 1120 (2017) if you missed the original due date of April 17, 2018, or if you need to correct errors from that tax year. Filing taxes late can result in a late payment penalty and additional IRS charges. Interest is compounded daily, and penalties continue until the balance is fully paid.
Corporations with unpaid taxes may face multiple penalties and interest charges. The minimum penalty applies after 60 days, and the IRS continues to assess penalties each partial month the balance remains unpaid. If you qualify, you can request penalty relief or set up a payment plan or installment agreement to resolve your tax bill.
For refund claims, corporations generally had until April 2021 to file for a tax refund. Even if a refund is no longer available, it is essential to file your return because the IRS can assess tax indefinitely for unfiled returns.
Key Rules Specific to 2017
- Tax Rates: The corporate tax rate for the 2017 tax year was up to 35% under graduated brackets for federal income tax returns.
- Blended Rate Requirement: Fiscal-year corporations that spanned 2017–2018 had to calculate tax using a blended rate of 35% before January 1, 2018, and 21% after that date.
- Net Operating Losses: Net operating losses for 2017 could be carried back two years and forward twenty years to reduce future income tax.
- Penalty Structure: The minimum penalty for filing more than 60 days late was $210 or the tax due, whichever was smaller.
- Schedules: Corporations with assets exceeding $10 million were required to file Schedule M-3, while smaller corporations used Schedule M-1 and Schedule M-2.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
- Gather Records and Transcripts: You should use Form 4506-T or the IRS online account tools to obtain 2017 account transcripts or prior-year tax records.
- Use the Correct-Year Form: You must use the 2017 version of Form 1120, since newer forms differ in deductions, tax rates, and line items.
- Attach Required Schedules: You must include Schedule M-1, Schedule M-2, Schedule D for capital gains or losses, and any other necessary supporting forms.
- Amendments: You should use Form 1120X to correct any errors from a previously filed return, providing clear explanations for all changes.
- Submit to the IRS: You must mail your federal income tax return to the correct IRS service center, since e-filing is not available for older returns.
- Keep Records: You should maintain copies of your filed return, proof of mailing, and supporting documents for at least three years after the due date.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Wrong-Year Form: You must always file using the 2017 version because later tax law changes affect deductions and calculations.
- Blended Tax Rates: You must prorate tax between pre-2018 and post-2017 periods for fiscal-year corporations.
- Schedule Errors: Verify that all schedules are attached correctly to avoid delays or correspondence from the IRS.
- Incorrect NOL Entries: You must ensure carrybacks and carryforwards are calculated correctly to avoid overstating deductions.
- Unsigned Returns: You must have a corporate officer sign the tax return; unsigned filings are invalid.
- Incomplete Attachments: You must include all schedules and supporting documents to prevent delays or additional IRS penalties.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After you file IRS Form 1120 (2017), the Internal Revenue Service reviews and processes your return, and, usually, paper filings take six to eight weeks, while late or amended filings may require additional time.
You may receive notices about taxes owed, payment penalties, or confirmation of receipt. If you owe taxes, penalties, and interest, these amounts will continue to accrue until the balance is fully paid. The failure to pay penalty equals 0.5% of the unpaid tax per month (up to 25%), while the failure-to-file penalty equals 5% per month (up to 25%). These penalties can accumulate quickly if the balance remains unpaid.
If you cannot pay the full amount, you can apply for a payment plan or installment agreement using Form 9465. Filing your return, even if you cannot pay, starts the statute of limitations and reduces future penalties. If you disagree with IRS findings, you can appeal through the IRS Office of Appeals.
FAQs
Can I still file my 2017 IRS Form 1120 if I never filed it?
Yes, you can still file IRS Form 1120 (2017) even if you never submitted it. Filing taxes late can reduce IRS penalties and initiate the statute of limitations. Failure to file allows the IRS to assess tax indefinitely until the return is filed and the account is brought up to date.
What is the late payment penalty for IRS Form 1120 (2017)?
The late payment penalty is typically 0.5% of the unpaid tax per month, up to a maximum of 25% of the total amount owed. Interest is compounded daily, and the IRS charges interest until the balance is fully paid. Late payment and interest charges can continue if you do not pay the full tax required.
How does the late filing penalty work?
The late filing penalty is 5% of the unpaid tax per month, up to a maximum of 25% of the unpaid tax. Filing late increases penalties and interest if the balance remains unpaid. Corporations filing more than 60 days late face a minimum penalty, even when the unpaid tax is small.
What happens if there is a failure-to-file penalty?
The failure-to-file penalty applies when a corporation fails to submit its return by the tax deadline or the approved tax extension date. The penalty increases for each partial month the return remains unpaid. You can request penalty relief if you have reasonable cause for filing late.
What if I’m filing taxes late and can’t pay in full?
You should still file your income tax return even if you cannot pay the total tax owed. Filing helps reduce penalties and interest and allows you to qualify for a payment plan. You can set up an installment agreement with the IRS to avoid additional late payment penalties.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
