IRS Form 1120-S (2019): S Corporation Tax Return
What IRS Form 1120-S (2019) Is For
Form 1120-S is the U.S. Income Tax Return for an S Corporation. It reports income, gains, losses, deductions, and credits for corporations that elected S corporation status using Form 2553 and had that election accepted (IRS Instructions for Form 1120-S (2019)). S corporations are pass-through entities, meaning shareholders report their share of items on personal returns via Schedule K-1.
When You’d Use Form 1120-S for 2019 (Late or Amended Filing)
You’d file a late 2019 Form 1120-S if you missed the March 16, 2020 deadline and received IRS notices for unfiled returns or penalties. Amended returns may be required if you discover errors in reported income, deductions, or shareholder allocations. Refund claims for 2019 expired April 15, 2023, though amended filings can still correct liabilities or reporting errors.
Key Rules Specific to 2019
- Late filing penalties under IRC 6699 were $200 per shareholder per month, up to 12 months.
- Failure-to-file penalties for returns over 60 days late were $210 or 100% of unpaid tax, whichever was smaller.
- 2019 was the first year requiring QBI deduction reporting on Schedule K-1, with specific pass-through entity statements attached to shareholder K-1s.
Step-by-Step (High Level)
- Gather transcripts: Obtain Account and Record of Account Transcripts from IRS.gov or Form 4506-T.
- Complete the correct form: Use the 2019 version, not current-year forms.
- Prepare schedules: Include Schedule K-1 for each shareholder, Schedule L, and supporting schedules such as Schedule D or Form 8825.
- Mail or e-file: Submit through IRS-approved methods.
- Maintain records: Keep complete copies of the return, schedules, and proof of filing.
Common Mistakes and How to Avoid Them
- Missing Schedule K-1s for shareholders.
- Errors in pass-through allocations between Schedule K and individual K-1s.
- Misreporting AAA balances on Schedule M-2.
- Failing to pay reasonable shareholder compensation before distributions.
- Incorrectly calculating built-in gains tax for former C corporations.
- Filing Form 1120-S without a valid S election in place.
What Happens After You File
The IRS generally processes late S corporation returns within 6–8 weeks. You may receive notices confirming receipt, assessing penalties, or requesting more details. Interest and penalties continue until balances are paid. If you owe taxes, you can request payment plans using Form 9465 or apply online. If adjustments are disputed, you have appeal rights through IRS Appeals.
FAQs
How much is the late filing penalty for my 2019 S corporation return?
The penalty is $200 per shareholder for each month (or part of month) late, up to 12 months maximum. For example, if you had three shareholders and filed six months late, the penalty would be $3,600 ($200 × 3 × 6). These amounts accumulate quickly and are assessed regardless of actual income reported.
Can I still get a refund if I’m filing my 2019 return late in 2024?
No. Refund claims for 2019 returns expired April 15, 2023. While you can still file to correct records or minimize penalties, refunds are no longer available. However, shareholders may still need accurate K-1s to amend personal returns, even though the corporation itself is not entitled to refunds at this point.
What’s the difference between Account Transcript and Record of Account Transcript?
The Account Transcript provides a summary of filing history, account balances, penalties, and notices. The Record of Account Transcript includes detailed line-by-line return information along with any IRS adjustments. Both are available through IRS.gov or Form 4506-T, and together they give a complete view of your corporation’s IRS account status.
Do I need to file amended state returns if I’m correcting my federal 1120-S?
Yes. Most states require amended state returns whenever federal filings are corrected, particularly if adjustments affect state taxable income. Requirements vary by state, so confirm deadlines and procedures with your state tax authority. Failing to amend can cause discrepancies, penalties, or audits, making timely state compliance just as important as federal filing updates.
Should I amend if I discover errors in Schedule K-1s already given to shareholders?
Yes. File an amended Form 1120-S and issue corrected K-1s clearly marked “Amended K-1.” Shareholders must use these corrected forms to amend their own returns. Errors in K-1 reporting affect personal taxes, credits, and deductions, so correcting them quickly ensures compliance and avoids potential IRS challenges for both the corporation and shareholders.
What if I can’t pay the balance due with my late 2019 return?
File the return anyway to stop late-filing penalties. Then, request a payment plan using Form 9465 or the IRS online application. Short-term plans (120 days) and long-term installment agreements are available depending on the balance. Interest will still accrue, but establishing a plan prevents enforced collection actions like liens or levies.
Will the IRS waive penalties for reasonable cause?
Yes, in some cases. You can request penalty relief by providing a written explanation showing reasonable cause, such as illness, natural disasters, or reliance on incorrect professional advice. Documentation strengthens your case. The IRS reviews requests individually, and while penalties may be abated, interest on unpaid tax generally cannot be removed.
