What Form 1120-S U.S. 2013 Is For
Form 1120-S (2013) is the income tax return S corporations use to report their annual corporate income, deductions, and credits to the Internal Revenue Service. This form allows the IRS to track the corporation’s income and confirm that individual shareholders report their share of profits on their personal tax returns.
S corporations differ from C corporations because they pass corporate income directly to shareholders, avoiding double taxation. Every corporation that has elected S corporation status for federal tax purposes must file this form each tax year, typically by the due date in the third month after the end of its tax year.
When You’d Use a S Corporation Income Tax Return
S corporations must file Form 1120-S annually to report their business taxes and corporate income to the IRS. For corporations operating on a calendar year, the due date for the 2013 tax year was March 17, 2014, because the standard March 15 date fell on a weekend. Small business owners can request a six-month extension by filing Form 7004 before the due date. Filing late may result in penalties, so taxpayers should submit their income tax returns on time to remain in compliance with the Internal Revenue Service.
Key Rules or Details for 2013 Income Tax
- Who Must File: Only corporations that elected S corporation status by submitting Form 2553 and receiving IRS approval must file Form 1120-S annually.
- Electronic Filing Requirements: Corporations with at least $10 million in total assets and more than 250 tax returns must file their reports for the 2013 tax year electronically.
- Form 1125-E Requirement: Corporations with total receipts exceeding $500,000 must file Form 1125-E to report officer salaries and other compensation.
- Schedule K and Schedule K-1: S corps must prepare these schedules to show how profits, deductions, credits, and capital gains pass through to individual shareholders.
- Estimated Taxes: If the corporation expects to owe $500 or more in taxes on built-in gains or investment income, it must make quarterly payments using EFTPS.
- Amended Returns: If an error is found after filing, the company must file an amended return and distribute corrected Schedule K-1 forms to affected shareholders.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step: File Form 1120 S U.S. 2013 (High Level)
Step 1: Gather Financial Records
Collect records of the corporation’s income, expenses, salaries, and capital gains. Include bank statements, receipts, and documentation of dividends or other income.
Step 2: Report Business Income
List all business income on Form 1120-S, including sales, services, and investment gains. Confirm that all figures match the company’s financial reports.
Step 3: Deduct Eligible Expenses
Enter deductions such as salaries, rent, and interest payments. Review each deduction to ensure it qualifies under federal tax purposes and is properly documented.
Step 4: Complete Schedule K
This schedule summarizes the corporation’s total income, deductions, and credits. It determines each shareholder’s share of corporate profits or losses.
Step 5: Prepare Schedule K-1 for Shareholders
Provide each shareholder a Schedule K-1 showing their portion of the corporation’s income, deductions, and credits. Shareholders use this to complete their personal tax returns.
Step 6: Review and Sign the Return
Ensure that all schedules are complete and signed by an authorized corporate officer. Before mailing or submitting electronically, verify that the form includes every necessary attachment.
Step 7: File by the Correct Date
File Form 1120-S by the due date in the third month after the corporation’s tax year ends. For late or amended filings, request an extension using Form 7004.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them in S Corporations
- Missing the Due Date: Many corporations file late because they miscalculate when the date falls. Mark the due date on your calendar and request extensions early to avoid penalties.
- Incorrect Schedule K-1 Totals: S corporations often make mistakes when adding up shareholder totals. Verify that all shareholder amounts equal the figures on Schedule K before filing.
- Omitting Officer Compensation: Failure to include officer salaries may raise IRS questions—complete Form 1125-E when required to ensure compliance.
- Improperly Calculated Deductions: Businesses sometimes claim deductions without adequate proof. Keep receipts and maintain detailed expense reports to confirm deductions are eligible.
- Failure to Maintain S Status: Adding ineligible shareholders or issuing multiple stock classes can disqualify an S corporation. Review ownership annually to confirm compliance with S corporation rules.
- Incomplete or Incorrect Schedules: Blank or mismatched schedules can delay processing. Double-check that every required schedule is complete before submission.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File Form 1120 S Corporation Income Tax Return
Once you file, the IRS reviews the corporation’s income tax return to ensure accuracy and consistency with shareholder reports. The Internal Revenue Service may contact your company if discrepancies appear. Shareholders use their Schedule K-1s to report their share of corporate income, dividends, or capital gains on their personal tax returns. Keep all filed forms, reports, and schedules for at least three years after the filing date. Most businesses should also confirm state-level filing requirements, since many states require separate S corporation filings even after the federal form is complete.
FAQs
What is the purpose of Form 1120 S U.S. 2013 for S corporations?
Form 1120-S allows S corporations to report income, deductions, and credits to the IRS. It ensures profits pass directly to shareholders for federal tax purposes, preventing double taxation.
When is the due date to file Form 1120 S for the 2013 tax year?
The due date was March 17, 2014, since the regular March 15 date fell on a weekend. If the date falls on a holiday, the next business day applies.
Can small business owners request an extension to file Form 1120 S?
You can request a six-month extension by filing Form 7004 before the original due date. The extension applies only to filing, not to any taxes owed.
How do shareholders report income from S corporations on personal tax returns?
Shareholders report their portion of the corporation’s income using Schedule K-1. This ensures each individual’s share of profits, dividends, and capital gains is correctly reported.
What happens if an S corporation files Form 1120 S late?
Late filing may incur penalties of $195 per shareholder per month, up to 12 months. The IRS may waive penalties if taxpayers show reasonable cause.
Do S corporations need to e-file their income tax return?
Corporations with at least $10 million in total assets and more than 250 forms filed annually must e-file their income tax return with the Internal Revenue Service.
Can an S corporation amend a previously filed income tax return?
Yes, file an amended Form 1120-S and mark the amended return box. Provide corrected Schedule K-1 forms to shareholders showing accurate figures for their personal tax returns.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
