What IRS Form 1120 (2016) Is For

Form 1120 is the U.S. Corporation Income Tax Return that C corporations use to report annual income, deductions, gains, losses, and credits to determine their federal income tax liability (IRS Instructions for Form 1120 (2016)). All domestic corporations, including those in bankruptcy, must file this form annually unless they are exempt, dissolved, or qualify for another form such as Form 1120-S. Filing is required whether or not the corporation has taxable income.

When You'd Use Form 1120 for 2016 (Late or Amended Filing)

You would file a late 2016 Form 1120 if the corporation missed the original due date (March 15, 2017 for calendar-year filers, September 15, 2016 for June 30 fiscal year-end filers), received IRS notices about missing returns, or needs to resolve unreported income or balance due amounts. Late filings are also common when corporations dissolve but never filed a final return.

For amended filings, use Form 1120X if you already filed but need to correct errors in reported income, deductions, or credits. Refund claims are subject to the three-year statute of limitations, which expired for most 2016 returns in 2020, meaning no refunds are available now except in limited circumstances.

Key Rules Specific to 2016

• Due dates:
  
  
  
  • Calendar-year corporations → March 15, 2017
    
    
  • June 30 fiscal year-end corporations → September 15, 2016
    
    
• NOLs: Net operating losses could be carried back 2 years and forward 20 years (different from current law).
  
  
• Accounting method: Corporations with average annual gross receipts over $5 million had to use the accrual method.
  
  
• Penalties: Minimum late filing penalty rose to $205 for returns filed over 60 days late. Regular failure-to-file penalties remained 5% per month, up to 25% of unpaid tax.
  
  
• Schedules required: Corporations with assets of $10 million or more filed Schedule M-3 instead of M-1. Smaller corporations with assets < $250,000 and receipts < $250,000 could skip Schedules L, M-1, and M-2.
  
  

Step-by-Step (High Level)

1. Gather transcripts and records: Request IRS account transcripts via Form 4506-T or IRS.gov to check what the IRS has on file.
   
   
2. Use the 2016 form: Download the 2016 Form 1120 and instructions from the IRS prior-year forms archive.
   
   
3. Complete the return: Include all income, deductions, credits, and required schedules such as M-1, M-2, and Schedule D (capital gains/losses).
   
   
4. File the return: Mail to the appropriate IRS service center or e-file if supported for prior years.
   
   
5. Make payments or arrangements: Submit payment with the return or set up an installment agreement using Form 9465 if unable to pay in full.
   
   
6. Retain documentation: Keep filed copies, schedules, and proof of mailing for at least three years.
   
   

Common Mistakes and How to Avoid Them

• Wrong form year: Always use the 2016 version of Form 1120—rules and line items differ from later years.
  
  
• Missed deadlines for fiscal-year corporations: Corporations with June 30 year-ends had a different 2016 due date (September 15, 2016).
  
  
• Missing Schedule M-1: Required for reconciling book income to tax income—often omitted.
  
  
• Incomplete estimated tax reporting: Failing to show quarterly estimated payments made in 2016 can create balance due discrepancies.
  
  
• Omitting required schedules: Attach Schedule D for capital transactions and Form 4626 for Alternative Minimum Tax if applicable.
  
  
• Unsigned returns: The form must be signed by an authorized officer—unsigned returns are invalid.
  
  

What Happens After You File

• Processing: Usually 6–8 weeks, longer for complex or late filings.
  
  
• IRS notices: You may receive acknowledgment, refund checks (if timely and eligible), balance due letters, or requests for additional information.
  
  
• Penalties and interest: These accrue from the original due date until fully paid.
  
  
• Payment options: Use Form 9465 to request an installment plan if immediate full payment isn’t possible.
  
  
• Examinations: The IRS may audit late or amended filings. You have appeal rights if you disagree with adjustments.
  
  

FAQs

How long do I have to file a 2016 Form 1120?

There is no deadline to file a delinquent return, but penalties and interest keep accruing until it’s filed and paid.

What penalties apply for late filing?

5% of unpaid tax per month (up to 25%), plus 0.5% per month for late payment. A minimum penalty of $205 applies if over 60 days late (IRS Instructions for Form 1120 (2016)).

Should I request transcripts before filing?

Yes. IRS account transcripts show third-party income (1099s, etc.), adjustments, and penalties already assessed.

Can I still get a refund for 2016?

No. The three-year statute of limitations expired in 2020 for most 2016 refunds.

Do I need to amend state returns too?

Yes, in most cases. State requirements vary, but federal amendments often require state amendments.

What if I can’t pay?

File anyway to stop additional late-filing penalties. Then request an installment plan using Form 9465 or explore other IRS payment relief options.

When should I use Form 1120X?

Use Form 1120X only if you already filed a 2016 Form 1120 and need to amend it. If you never filed, submit the original 2016 Form 1120.

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