What IRS Form 1120-S (2015) Is For

Form 1120-S is the U.S. Income Tax Return for an S Corporation for the 2015 tax year. S Corporations use this form to report income, gains, losses, deductions, and credits, even though they generally don’t pay corporate income tax. Instead, pass-through income and losses are reported by shareholders on individual returns via Schedule K-1.

When You’d Use Form 1120-S for 2015 (Late or Amended Filing)

You would file a late or amended 2015 Form 1120-S if you received IRS notices for unfiled returns, found errors in your original filing, or needed to correct shareholder K-1s. Refunds must generally be claimed within three years of the original due date or two years from payment, meaning 2015 refund opportunities are now limited.

Key Rules Specific to 2015

• Affordable Care Act rules began requiring S Corporations with 50+ full-time employees to file Forms 1094-C and 1095-C.
  
  
• The built-in gains tax recognition period was permanently extended to ten years, impacting S Corporations that converted from C Corporation status.
  
  
• Penalties for late filings increased, with $195 per shareholder per month assessed for returns more than 60 days late.
  
  

Step-by-Step (High Level)

1. Gather records: Request IRS transcripts and collect financial records and prior-year returns.
   
   
2. Use the right form: Complete the official 2015 Form 1120-S only.
   
   
3. Prepare K-1s: Issue accurate Schedules K-1 to all 2015 shareholders.
   
   
4. Attach schedules: File necessary schedules such as M-3 or Form 8825 if applicable.
   
   
5. File return: E-file if supported; otherwise, mail to the IRS service center.
   
   
6. Keep copies: Retain filed forms, K-1s, and proof of submission.
   
   

Common Mistakes and How to Avoid Them

• Ignoring late filing penalties ($195 per shareholder per month, up to 12 months).
  
  
• Submitting incomplete K-1s, with missing codes or items.
  
  
• Failing to confirm Form 2553 election approval before filing.
  
  
• Errors in the Accumulated Adjustments Account (AAA) affecting shareholder distributions.
  
  
• Not paying reasonable compensation to shareholder-employees.
  
  
• Using wrong-year forms or missing Affordable Care Act reporting obligations.
  
  

What Happens After You File

The IRS usually processes S Corporation returns within 4–6 weeks, but late or amended returns may take longer. Expect notices if penalties, additional tax, or missing information apply. If money is owed, you can arrange installment payments with Form 9465. Penalties may be abated if you show reasonable cause, such as illness or natural disasters.

FAQs

Can I still get a refund from my 2015 S Corporation return if I’m filing late?

Refund claims must be filed within three years of the original due date or two years of payment. For 2015, this deadline has passed in most cases, limiting refund opportunities. Exceptions may exist for certain carrybacks or unusual circumstances, but generally, refund claims from 2015 are no longer allowed.

What’s the penalty for filing my 2015 Form 1120-S late?

The penalty is $195 per shareholder for every month (or part of a month) the return is late, capped at 12 months. Interest accrues on unpaid amounts, and penalties add up quickly even for small corporations. Filing as soon as possible and requesting penalty relief for reasonable cause can reduce exposure.

Do I need to amend state returns if I file a late or amended federal S Corporation return?

Yes. Most states require corporations to file amended returns if changes are made at the federal level. If you amend Form 1120-S, you must typically file amended state returns reflecting the adjustments. Deadlines and requirements vary, so always confirm with your state’s tax agency to remain compliant.

How do I get transcripts to see what the IRS has on file for my 2015 return?

You can request transcripts through the IRS “Get Transcript” tool online, by calling 1-800-908-9946, or by submitting Form 4506-T. Business account transcripts show your filing history, penalties, and payments, which helps identify errors or missing filings before submitting a late or amended 2015 return.

Can I e-file a late 2015 Form 1120-S?

Electronic filing availability depends on whether tax software supports prior-year returns. Some providers no longer support 2015 filings, in which case you must file a paper return. Paper filing is slower but accepted by the IRS. Check with your provider before attempting to e-file for a prior year.

What if I discover errors in K-1s already sent to shareholders?

You must file an amended Form 1120-S and issue corrected K-1s marked “Amended K-1” to affected shareholders. Shareholders then amend their personal returns as needed. Failing to correct K-1s may result in IRS notices to both the corporation and the shareholders, so corrections should be made promptly.

How do I claim reasonable cause for late filing penalties?

Write a detailed statement explaining circumstances beyond your control, such as illness, natural disasters, or professional errors, that prevented timely filing. Include documentation, such as medical records or correspondence with tax professionals. Submit with your return or separately to the IRS when requesting penalty abatement consideration.

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