Form 1120 (2015 Tax Year) – Checklist for Paper Filing
Unique Characteristics for 2015
The 2015 Form 1120 introduces health insurance reporting obligations under the Affordable Care Act for applicable large employers (ALEs) with 50+ full-time equivalent employees, requiring completed Forms 1094-C and 1095-C attachments and mandatory Schedule UTP for uncertain tax positions if the corporation has assets ≥$10 million. This year marks the expansion of documentation requirements alongside traditional income and deduction reporting.
2015 Year-Specific Programs Applicable to Form 1120
Under the Affordable Care Act’s employer shared responsibility provisions, which were in effect for 2015, ALEs that do not offer minimum essential coverage meeting affordability and minimum value standards to at least 95 percent of full-time employees must either provide coverage or report employer shared responsibility payments.
Corporations with 50 or more full-time equivalent employees in the previous year must complete and attach Forms 1094-C and 1095-C, which document health coverage offers and enrollment status for their employees.
Form 1120 (2015) Paper-Filing Checklist
Step 1: Verify Filing Requirement and Gather Entity Information
Unless exempt under section 501, all domestic corporations must file Form 1120 regardless of whether they have taxable income for the 2015 tax year. Obtain the corporation’s legal name, Employer Identification Number (EIN), date of incorporation, and principal business or professional activity code before beginning Form 1120 completion.
Step 2: Collect and Organize Income Documentation
Gather all 2015 income records, including gross receipts or sales, returns and allowances, cost of goods sold documentation (Form 1125-A), capital gains and losses (Schedule D), dividends, interest income, rents, royalties, and other income sources.
For S corporation income, partnerships, estates, or trusts, obtain Schedule K-1 forms received by December 31, 2015.
Step 3: Calculate and Report Gross Profit Through Total Income (Lines 1–11)
Enter gross receipts or sales on line 1a, returns and allowances on line 1b, then calculate the balance on line 1c—report cost of goods sold from Form 1125-A on line 2 (required if inventory is maintained). Calculate gross profit on line 3, then add all other income items (lines 4–10) to arrive at total income on line 11.
Step 4: Compile and Attach All Required Deduction Forms and Schedules
Before calculating total deductions on line 27, ensure Form 1125-A (cost of goods sold) is completed and attached if applicable, Form 4562 (depreciation and amortization) is connected if claiming such deductions, and Form 8903 (domestic production activities deduction) is attached if claiming the deduction under section 199. If claiming capital losses or certain gains, attach Schedule D.
Step 5: Report Deductions and Calculate Taxable Income Before NOL (Lines 12–28)
Complete all applicable deduction lines 12–26 (compensation of officers, salaries and wages, repairs and maintenance, bad debts, rents, taxes and licenses, interest, charitable contributions, depreciation from Form 4562, depletion, advertising, pension and profit-sharing plans, employee benefit programs, other deductions). Sum these on line 27, then subtract line 27 from line 11 to calculate taxable income before NOL deduction and special deductions on line 28.
Step 6: Claim NOL Deduction and Special Deductions (Lines 29a–30)
If the corporation had a net operating loss in a prior year that is not barred by the statute of limitations, complete and reference Form 2220 if claiming the deduction; enter the NOL deduction on line 29a. Report special deductions from Schedule C (dividends received deductions) on line 29b; do not enter special deductions on Schedule C if the corporation is filing a consolidated return. Subtract the sum of lines 29a and 29b from line 28 to determine taxable income on line 30.
Step 7: Complete Schedule C (Dividends and Special Deductions) if Applicable
If the corporation received dividends in 2015 from domestic corporations in which it owned 20 percent or more of the stock, calculate the qualifying percentage deduction on Schedule C and enter the total special deductions on Schedule C line 20, then carry this total to Form 1120 line 29b. Corporations filing consolidated returns must not report patronage dividends on Schedule C.
Step 8: Report Estimated Tax Payment History and Verify ACA Compliance (Schedules J and K)
On Schedule J Part II (Payments and Refundable Credits), report all 2015 estimated tax payments made on or before the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
On Schedule K, indicate whether the corporation is required to report under sections 6055 and 6056 regarding health insurance offers; if the answer is “Yes,” file one Form 1094-C designated as the Authoritative Transmittal, which reports aggregate employer-level data for all full-time employees, along with a Form 1095-C for each full-time employee of the ALE Member for any month of the calendar year.
Step 9: Complete Balance Sheet and Income Reconciliation Schedules
Complete Schedule L (Balance Sheets per Books) with year-beginning and year-end amounts for all asset, liability, and equity accounts. Complete Schedule M-1 (Reconciliation of Income (Loss) per Books with Income per Return) to reconcile book income to taxable income, showing all material differences between financial accounting and tax treatment.
If the corporation has total assets of $10 million or more, file Schedule M-3 instead of Schedule M-1 and provide an additional detailed reconciliation.
Step 10: Sign, Date, and Assemble for Mailing in Correct Order
The return must be signed and dated by the president, vice president, treasurer, assistant treasurer, or other authorized officer. Assemble all schedules and forms in the required order: Schedule N, Schedule D, Schedule O, Form 4626, Form 1125-A, Form 4562, Form 8903, Form 3800, additional schedules in alphabetical order, additional forms in numerical order, then supporting statements and attachments.
Do not write “See Attached” or “Available Upon Request” in place of entry spaces; complete every applicable line.
Mail the complete return (including all required attachments, Forms 1094-C and 1095-C if appropriate as an ALE, and Schedule UTP if the corporation has assets ≥$10 million and uncertain tax positions) by the 15th day of the 3rd month following the close of the 2015 tax year, according to the applicable IRS Service Center address for the corporation’s location.
Form Changes for 2015
Schedule UTP (Uncertain Tax Position Statement)
The prior year standard did not require explicit standalone reporting of uncertain tax positions on Form 1120 returns for smaller filers. Current year (2015) involves Form 1120 filers that have total assets of $10 million or more and issue or are included in audited financial statements to complete and attach Schedule UTP (Form 1120) to report each U.S. federal income tax position that affects the corporation’s federal income tax liabilities and for which there is uncertainty as to whether the position will be sustained upon examination. This amendment represents an added provision.
Health Insurance Reporting (Schedule K, Question 13; Forms 1094-C and 1095-C Attachment)
The prior-year standard did not include explicit requirements to report health coverage offers or completion status. For the current year (2015), applicable large employers (defined as corporations with 50 or more full-time equivalent employees in the previous year) are required to answer Schedule K question 13 regarding whether they are required to report information under sections 6055 and 6056.
It must attach completed Forms 1094-C and 1095-C, which document the offers of health coverage, employees receiving coverage, and individual coverage details for all full-time employees under the Affordable Care Act's employer shared responsibility provisions. This amendment represents an added provision.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
