Form 1120X Tax Year 2014 Filing Checklist
Year-Specific Context
Form 1120X for tax year 2014 is used to amend a previously filed Form 1120 or Form 1120-A.
The 2014 tax year operates under pre-TCJA tax law, applying graduated corporate tax rates ranging from 15 percent on the first $50,000 of taxable income to 35 percent on taxable income exceeding $10 million. No matter how much money they make, personal service corporations have to pay a flat 35 percent tax rate.
The Tax Cuts and Jobs Act, enacted in December 2017 and effective for tax years beginning after December 31, 2017, does not apply to tax returns for 2014. For 2014, corporations cannot claim provisions related to the American Recovery and Reinvestment Act stimulus payments or the Affordable Care Act shared responsibility payment, as these provisions do not apply to Form 1120X for corporate tax filings.
Form 1120X Filing Requirements
Form 1120X for 2014 is exclusively for correcting errors or making adjustments to previously filed corporate income tax returns. The form accommodates changes to income, deductions, credits, payments, and tax liability.
Corporations must file Form 1120X within three years from the date the original return was filed or within two years from the date the tax was paid, whichever is later, to claim a refund.
Special rules apply for net operating loss carrybacks and capital loss carrybacks, which extend the filing period to three years from the due date of the return for the year in which the loss occurred.
Ten-Step Filing Checklist
Step 1: Gather Original Return and Supporting Documentation
Collect the complete original Form 1120 or Form 1120-A filed for the 2014 tax year, including all schedules and attachments, such as Schedule D for capital gains and losses, Schedule J for tax computation, Schedule K for other information, Schedule L for balance sheets, Schedule M-1 for reconciliation of income, and Schedule M-2 for analysis of unappropriated retained earnings. If the corporation filed Schedule K-1 forms for shareholders or beneficiaries, obtain copies of those forms.
Gather all supporting documentation used to prepare the original return, including receipts, invoices, bank statements, depreciation schedules, and any correspondence from the IRS regarding it.
Step 2: Verify Corrected Amounts and Prepare Supporting Documentation
Identify all items requiring correction on the original return. For each corrected item, prepare supporting documentation that substantiates the change. This includes revised depreciation schedules, corrected Forms 1099, amended partnership or S corporation K-1 forms received after the original filing, corrected capital gains or losses schedules, and any other documentation that supports the amended amounts.
Ensure all supporting schedules are updated to reflect corrected figures and attach copies of these revised schedules to Form 1120X.
Step 3: Confirm Tax Year and Filing Information
Verify the corporation’s tax year ending date and enter it in the designated box at the top of Form 1120X. The tax year should match the tax year of the original return being amended.
Confirm that the corporation’s legal name, employer identification number, and address are consistent with IRS records.
If the corporation has changed its name or address since filing the original return, provide updated information and attach a copy of the legal document supporting the name change, if applicable.
Step 4: Complete Part I Using the Three-Column Format
Part I of Form 1120X uses a three-column format to report the original amounts, net changes, and corrected amounts.
In column (a), enter the amounts as originally reported or as previously adjusted on the amended return. In column (b), enter the net increase or decrease for each line item, using parentheses to indicate decreases. In column (c), enter the corrected amounts by combining the amounts from columns (a) and (b).
Ensure that all line items affected by the amendment are completed, including income items such as gross receipts, cost of goods sold, dividends, interest, rents, and capital gains, as well as deduction items such as compensation of officers, salaries and wages, repairs and maintenance, taxes and licenses, interest expense, charitable contributions, depreciation, and other deductions.
Step 5: Recalculate Tax Liability Using 2014 Corporate Tax Rates
Review and recalculate the corporation’s tax liability on Schedule J based on the corrected taxable income.
Apply the 2014 graduated corporate tax rate structure: 15 percent on taxable income up to $50,000; 25 percent on taxable income over $50,000 but not over $75,000; 34 percent on taxable income over $75,000 but not over $10,000,000; and 35 percent on taxable income over $10,000,000.
Additional tax may be applicable if the corporation’s taxable income exceeds certain thresholds due to the phase-out of graduated rates. Personal service corporations are taxed at a flat 35 percent rate on all taxable income.
Ensure all credits, such as the general business credit and foreign tax credit, are appropriately applied to reduce the corrected tax liability.
Step 6: Account for Payments and Credits
On Part I, line 5, report all payments and credits from the original return, including estimated tax payments made by the corporation, any overpayment from the prior year applied to the 2014 tax year, tax deposited with Form 7004 for an extension, and any credits from regulated investment companies or real estate investment trusts.
On line 6, enter the total tax paid with the original return or as previously adjusted.
Calculate the net tax due or overpayment by comparing the corrected tax liability to total payments and credits. If the corrected tax exceeds payments and credits, the corporation owes additional tax. If costs and credits exceed the corrected tax, the corporation is entitled to a refund or credit.
Step 7: Complete Part II: Explanation of Changes
Part II requires a detailed narrative explanation for each change made in Part I. For each line item amended, provide the line number, a clear description of the change, the reason for the amendment, and supporting computations. Attach additional sheets if necessary to provide complete explanations.
If the amendment involves a net operating loss carryback, capital loss carryback, or general business credit carryback, include detailed calculations showing how the carryback was computed and applied.
If the amendment results from an IRS audit or examination, reference the IRS correspondence or report number and attach copies of relevant IRS documents.
Step 8: Attach Required Schedules and Forms
Attach all necessary supporting schedules and forms to Form 1120X. If Schedule J was affected by the amendment, attach a revised Schedule J showing the corrected tax computation.
If capital gains or losses changed, attach a revised Schedule D and Form 8949 with details of the corrected transactions.
Attach revised versions of Schedule M-1 or Schedule M-2 if the amendment involves changes to these schedules.
If the corporation is claiming a net operating loss carryback, attach a copy of Form 1120 or Form 1120X for the carryback year showing how the loss was computed.
If the amendment affects an eligible small business credit carryback, attach Form 3800 and supporting schedules.
Attach any other forms or schedules referenced in Part II explanations.
Step 9: Verify Carryback Elections and Procedures
If the corporation is filing Form 1120X to carry back a net operating loss, confirm that the loss qualifies for carryback under the 2014 tax law. Generally, net operating losses arising in 2014 can be carried back two years and forward twenty years. You can carry back farming losses for a maximum of five years.
If the corporation previously elected to forgo the carryback period, that election cannot be revoked by filing Form 1120X.
If the corporation is claiming a capital loss carryback, verify that the loss qualifies for a three-year carryback under section 1212.
If the corporation is claiming an eligible small business credit carryback under section 38, verify that the corporation meets the gross receipts test and the credit qualifies for the five-year carryback period.
Step 10: Sign, Date, and File
An authorized corporate officer must sign and date Form 1120X. The signature certifies that the return has been examined and that, to the best of the signer’s knowledge and belief, the amended return is true, correct, and complete.
The corporate officer signing the return must provide their title and the date of signature. If a paid preparer prepared the return, the preparer must sign in the designated area and provide their preparer tax identification number, firm name, address, and phone number.
Do not include any extraneous statements or instructions on the signature line.
Mail the completed Form 1120X with all attachments to the IRS service center where the original return was filed. Consult the IRS Where to File page for Form 1120X to confirm the correct mailing address based on the corporation’s principal business location.
Form-Specific Limitations for 2014
Corporations cannot use Form 1120X to change certain elections once made on the original return unless the IRS specifically allows such changes by regulation or published guidance.
Generally, an amended return cannot change elections regarding depreciation methods, accounting methods, and inventory valuation methods.
Consolidated groups must file a consolidated Form 1120X if the amendment affects the consolidated taxable income or tax liability.
Each member of the consolidated group must provide information on its share of the consolidated adjustments.
Nonresident alien shareholders and foreign corporations are restricted from claiming certain credits and deductions available only to U.S. individuals.
Form 1120X for 2014 must be filed on paper; the electronic filing of amended corporate returns was not available for 2014 tax year filings.
2014 Form 1120X Major Updates
The 2014 Form 1120X instructions clarified procedures for properly documenting amendments, emphasizing the requirement for detailed explanations in Part II and comprehensive supporting schedules. The instructions reinforced signature requirements, specifying that only an authorized corporate officer may sign on behalf of the corporation.
The 2014 instructions did not introduce layout redesigns but provided enhanced guidance on completing the three-column format in Part I to ensure consistency and accuracy. The instructions emphasized that Form 1120X is used exclusively for amending previously filed returns and cannot be used to file an original return or to make protective claims unless the corporation has already filed an original return for the year being amended.
Conclusion
Filing Form 1120X for tax year 2014 requires careful attention to detail, comprehensive supporting documentation, and full compliance with pre-TCJA tax law provisions. Corporations must accurately complete the three-column format in Part I, provide detailed explanations in Part II, and attach all required schedules and forms as specified.
Properly executed amendments ensure the timely processing of refund claims and minimize the risk of IRS inquiries or audits. Adherence to the ten-step checklist facilitates accurate and efficient completion of Form 1120X for tax year 2014.
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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.
