What IRS Form 1120-S (2024) Is For

Form 1120-S is the U.S. Income Tax Return for an S Corporation, used to report the income, gains, losses, deductions, credits, and other tax information of a domestic corporation that has elected S corporation status. S corporations are pass-through entities that generally don't pay federal income tax at the corporate level—instead, income and losses flow through to shareholders' individual tax returns via Schedule K-1 (IRS Instructions for Form 1120-S (2024)).

When You'd Use Form 1120-S for 2024 (Late or Amended Filing)

You would file Form 1120-S late or as an amended return in several scenarios: when you've received IRS notices about unfiled returns, discovered errors in previously filed returns requiring correction, or when shareholders need corrected Schedule K-1 information for their personal returns. Late filings are common when S corporations miss the March 15th deadline (March 17, 2025, for the 2024 tax year since March 15th falls on Saturday) or the extended deadline of September 15th. If seeking refunds from overpaid taxes, remember that the three-year refund statute of limitations generally applies, meaning claims must typically be filed within three years of the original due date (IRS Instructions for Form 1120-S (2024)).

Key Rules Specific to 2024

For 2024 tax year returns filed in 2025, the minimum penalty for late filing increased to $510 for returns filed more than 60 days late. The per-shareholder late filing penalty is now $245 per month (or part of a month) per shareholder, up to 12 months. Additionally, S corporations filing 10 or more returns of any type are required to e-file Form 1120-S, though waivers may be available for hardship situations. The failure to furnish Schedule K-1 penalty increased to $330 per schedule, rising to $660 for intentional disregard (IRS Instructions for Form 1120-S (2024)).

Step-by-Step (High Level)

• Gather account transcripts from the IRS to understand your filing history and any penalties assessed
  
  
• Complete the 2024 Form 1120-S using the correct tax year form, ensuring all entry spaces are filled rather than writing "See Attached"
  
  
• Prepare required schedules including Schedule K and individual Schedule K-1s for each shareholder, marking "Amended K-1" boxes if correcting previously filed information
  
  
• Check appropriate boxes on page 1 (Item H) if filing amended return (box H(4)) or late return, and attach detailed explanations
  
  
• Choose filing method: e-file if required or mail to the appropriate processing center based on your corporation's location
  
  
• Maintain copies of all filed documents and delivery confirmations for your records (IRS Instructions for Form 1120-S (2024))
  
  

Common Mistakes and How to Avoid Them

• Filing before S election is effective – Never file Form 1120-S until you've received IRS confirmation that your Form 2553 election has been accepted
  
  
• Inadequate reasonable compensation – Officer-shareholders must receive reasonable compensation as W-2 wages before taking distributions
  
  
• Incomplete entry spaces – Fill in all applicable fields instead of writing "See Attached"
  
  
• Missing or incorrect Schedule K-1s – Ensure all shareholders receive accurate K-1s by the filing deadline, since penalties apply per schedule
  
  
• Unsigned returns – Only an authorized corporate officer may sign the return
  
  
• Improper AAA tracking – Maintain accurate Accumulated Adjustments Account balances for correct taxation of distributions
  
  

What Happens After You File

Processing times vary, with electronically filed returns typically processed within 21 days, while paper returns may take significantly longer. You'll receive acknowledgment of acceptance for e-filed returns or processing notices for paper returns. If the IRS identifies issues, you may receive notices requesting additional information or proposing changes. For payment of any taxes owed, you can establish installment agreements using Form 9465 if you cannot pay in full. Interest and penalties continue to accrue on unpaid balances. If you disagree with IRS determinations, you have appeal rights and can request conferences with IRS Appeals officers to resolve disputes before they proceed to court (IRS Processing Status for Tax Forms; IRS Form 9465 Instructions).

FAQs

How much is the late filing penalty for S corporations in 2024?

The penalty is $245 per shareholder per month or part of a month, up to 12 months. For returns filed more than 60 days late, there’s also a minimum penalty of $510. These charges apply whether or not tax is due, and additional penalties may be assessed if balances remain unpaid after filing.

Can I get account transcripts to help prepare my late return?

Yes. You can request account transcripts from the IRS online, by calling 1-800-908-9946, or by submitting Form 4506-T. These transcripts provide details about filing history, penalties, and payments recorded with the IRS, which helps identify discrepancies and ensures accurate preparation of your late or amended S corporation return.

How long do I have to claim a refund from a prior year S corporation return?

Refund claims generally must be filed within three years of the original due date, including any extensions granted. For example, if your 2024 return was due March 17, 2025, refund claims typically must be filed by March 17, 2028. Filing outside this window usually prevents recovery of any overpaid corporate taxes.

If I file an amended S corporation return, do shareholders need to amend their personal returns?

Yes. Amended corporate returns that change income, deductions, or credits will generate corrected Schedule K-1s for shareholders. Shareholders should use these corrected K-1s to amend their personal tax returns with Form 1040X if necessary. This ensures accurate reporting of pass-through items and prevents mismatches that could trigger IRS notices or penalties.

What’s considered reasonable compensation for S corporation officers?

Reasonable compensation depends on factors such as duties performed, time spent working, industry standards, and the corporation’s financial condition. The IRS expects shareholder-officers who perform services to receive salaries comparable to those in similar roles. Paying unreasonably low wages while issuing large distributions can trigger audits and result in reclassification of distributions as taxable wages.

Do I need to e-file my S corporation return?

Yes. Beginning in 2025, corporations filing 10 or more returns of any type during the calendar year must e-file Form 1120-S. Paper filing is no longer an option unless you qualify for and receive a hardship waiver. Failure to comply with this e-filing requirement can result in rejection of returns and potential penalties.

Should I also amend my state S corporation return?

In most cases, yes. States typically require amended returns when federal returns are amended, particularly if changes affect state taxable income. Requirements vary by state, so you should review your state tax agency’s rules to confirm deadlines and procedures. Filing amended state returns helps avoid discrepancies between state and federal filings.

‍