What IRS Form 1120 (2016) Is For
IRS Form 1120 (2016) is the U.S. Corporation Income Tax Return that C corporations use to report income, deductions, credits, and payments for the 2016 tax year. The form calculates the corporation’s federal income tax liability and must be filed even if there is no taxable income. According to IRS instructions, all domestic corporations, including those in bankruptcy, are required to file unless they are exempt, dissolved, or qualify for an alternative return, such as Form 1120-S.
Corporations should protect all business and taxpayer information when they file, especially if submitting electronically through the IRS page that displays a locked padlock icon. The "Last Reviewed or Updated" section on IRS.gov indicates the latest version and effective dates for Form 1120.
When You’d Use Form 1120 for 2016 (Late or Amended Filing)
Corporations may still need to file the 2016 tax return if they missed the original due date or need to correct previously reported information. For calendar-year corporations, the due date was March 15, 2017. For those with a June 30 fiscal year-end, the due date was September 15, 2016. A business may file late if the IRS issued a notice about a missing return, if it wants to resolve unreported income, or if it never filed a final return after dissolution.
If the corporation has already filed but needs to amend an error, it must use Form 1120X. Refund claims for this tax year generally expired in 2020, as per the three-year statute of limitations. However, certain exceptions may apply for exceptional cases.
Key Rules Specific to 2016
- Due Dates: Calendar-year corporations filed by March 15, 2017, and those with a June 30 fiscal year-end filed by September 15, 2016.
- Net Operating Losses: Businesses could carry back net operating losses for two years and carry them forward for twenty years.
- Accounting Method: Corporations with average annual receipts exceeding $5 million had to use the accrual method.
- Penalties: The minimum late-filing penalty increased to $205 if filed more than 60 days late, and the failure-to-file penalty remained 5% per month, up to 25% of the unpaid tax.
- Required Schedules: Corporations with assets of $10 million or more were required to file Schedule M-3 instead of Schedule M-1. Smaller corporations with assets and receipts under $250,000 could omit Schedules L, M-1, and M-2.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
- Gather Records: Request IRS account transcripts using Form 4506-T or through IRS.gov to confirm what information is already on file.
- Download the Correct Form: Access the 2016 Form 1120 and its instructions from the IRS prior-year forms page to ensure accuracy.
- Complete the Return: Enter all income, deductions, estimated tax payments, and credits accurately. Attach supporting schedules such as M-1, M-2, and Schedule D for capital gains and losses.
- File the Return: Submit the return electronically or mail it to the correct IRS service center. If you are unable to pay in full, include payment with your return or request an installment plan using Form 9465.
- Retain Documentation: Keep copies of all returns, receipts, and proof of mailing for at least three years after filing to ensure your records are protected.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Wrong Form Year: Always use the 2016 version of IRS Form 1120 because line items and rules differ from later versions.
- Missed Filing Dates: Fiscal-year corporations often overlook the September 15 due date for year-ends ending on June 30. Always confirm the correct dates for your filing to ensure accuracy and completeness.
- Missing Schedule M-1: Corporations should not omit this required reconciliation between book and tax income.
- Incomplete Estimated Tax Reporting: Make sure to list quarterly estimated tax payments to avoid discrepancies and penalties.
- Omitting Required Schedules: Always attach Schedule D for capital gains and Form 4626 if the corporation is subject to the Alternative Minimum Tax.
- Unsigned Return: The form must be signed by an authorized officer. An unsigned return is considered invalid and may trigger additional notices.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After a corporation files Form 1120 for the 2016 tax year, the IRS usually processes it within six to eight weeks. Complex or late returns may take longer to process. The IRS may send acknowledgment letters, balance due notices, or requests for additional information.
- Penalties and Interest: These continue to accrue from the original due date until the full balance is paid in full.
- Payment Options: If a business is unable to pay immediately, it can request an installment plan using Form 9465.
- Examinations: Late or amended filings may be selected for audit. Corporations have appeal rights if they disagree with any adjustments.
Corporations should manage their filings carefully and maintain the security of all relevant information to ensure compliance and protect their interests. The IRS website’s page, which is the last reviewed or updated section, ensures filers are accessing the most current instructions and forms.
FAQs
How long do I have to file IRS Form 1120 (2016)?
There is no final deadline to file a delinquent IRS Form 1120 (2016), but penalties and interest continue to accrue until the tax return is filed and paid. Filing promptly helps the corporation resolve any outstanding balance and maintain compliance with income tax regulations.
What penalties apply for a late tax return?
The IRS charges a 5% penalty of unpaid tax per month, up to 25%, for failing to file on time. A minimum penalty of $205 applies if the return is filed more than 60 days after the due date. Additional penalties may apply if the business is unable to pay the full amount due by the original due date.
Should I request transcripts before filing an income tax return?
Yes, requesting IRS account transcripts is essential for verifying income, payments, and any penalties that have already been assessed. Reviewing this income tax information ensures the business files accurately and avoids duplicate payments or processing delays.
Can I still get a refund for IRS Form 1120 (2016)?
No, the refund period for the 2016 tax year expired for most corporations in 2020. Only specific exceptions apply, such as adjustments made during an audit. Businesses should still file the return to resolve penalties and update records, even if no refund is available.
Do I need to amend state returns if I file a federal tax return?
In most cases, yes. State tax agencies require amended returns when the federal filing changes. Review the state’s instructions and filing dates to ensure compliance. Coordinating state and federal returns helps maintain accurate records and prevents tax discrepancies.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
