What IRS Form 1120 (2020) Is For
IRS Form 1120 (2020) is the U.S. Corporation Income Tax Return used by corporations to report income, gains, losses, deductions, and credits for the tax year. This form determines each corporation’s federal income tax liability based on total assets, taxable income, and deductions claimed. All domestic corporations, including those in bankruptcy, must file unless exempt under section 501 or required to use another tax return form.
The IRS requires that corporations report all transactions, financial accounts, and related assistance received during the tax year. The form also allows corporations to provide additional information through attached schedules and statements. Taxpayers can view official IRS resources or instructions for details on completing each section of the form.
When You’d Use Form 1120 for 2020 (Late or Amended Filing)
Corporations may still file a late 2020 income tax return if they missed the original deadline and received an IRS notice requesting the return. When filing an amended return, corporations must use Form 1120-X. Refund claims generally must be filed within three years of April 15, 2021, or two years from the date the tax was paid, whichever is later.
Corporations affected by disasters during the 2020 tax year may qualify for disaster relief, allowing them to file their returns late without incurring specific penalties. The IRS may also extend deadlines for areas affected by federally declared disasters. Individuals requiring additional time should request assistance through the IRS website or contact support services for guidance.
Key Rules Specific to 2020
- NOLs: Net Operating Losses from 2018 through 2020 could be carried back five years under the CARES Act. This provision enabled corporations to recover money from prior tax payments, thereby improving their cash flow following economic disruptions.
- Employee Retention Credit: Introduced in 2020, this credit applied to qualified wages paid to employees. Amounts claimed reduced other credits and were reportable as income for the corporation’s tax return.
- Charitable Contributions: Cash donations to qualifying charities could be deducted up to 25% of taxable income. This temporary change supported charitable work and family-based support efforts during the disaster relief period.
- Disaster Relief Contributions: The IRS suspended the usual 10% limit for corporations that made specific charitable contributions between 2019 and 2021 to help individuals and communities affected by disasters.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
- Gather Records: Request IRS transcripts using Form 4506-T and collect financial information, such as ledgers, bank account statements, and transaction records, for the 2020 tax year.
- Use the Correct-Year Form: Always file using the 2020 version of IRS Form 1120, not a later one. Using the incorrect form may cause delays or result in the rejection of your filing.
- Attach Required Schedules: Include Schedule M-1, Schedule M-2, or Schedule M-3, depending on your total assets and filing status. Large corporations with assets exceeding $10 million are required to file Schedule M-3.
- File Properly: Corporations can e-file if eligible, or mail paper returns to the correct IRS processing center. Include all required statements, supporting documents, and signatures to avoid delays.
- Retain Copies: Keep all forms, statements, and supporting schedules for a minimum of three years. This ensures that corporations can respond quickly to any IRS request or audit notice.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Ignoring NOL Carrybacks: Review prior-year returns to determine if claiming a Net Operating Loss carryback could generate a refund before the carryforward option is used.
- Missing Schedules: Check the filing instructions to ensure Schedules M-1, M-2, or M-3 are included when required based on total assets or income.
- Incorrect Filing Deadlines: Confirm the correct due date for your corporation’s fiscal year, especially for June 30 year-ends, before submitting the return.
- Misreporting COVID-19 Credits: Verify the eligibility and amount of any pandemic-related credits against IRS guidance to prevent balance errors or refund delays.
- Entering Incorrect Information: Carefully review the corporation’s name, address, and EIN for accuracy before filing to avoid rejected or delayed returns.
- Ignoring Penalty Calculations: Complete Form 2220 or calculate estimated tax penalties accurately to prevent additional charges.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once submitted, e-filed 2020 returns are usually processed by the IRS within 21 days, while mailed paper forms can take several weeks or even months due to backlogs. The IRS may send a statement confirming receipt or requesting additional information. If money is owed, corporations can set up payment plans using Form 9465.
If you disagree with an IRS assessment, you may appeal through the IRS Office of Appeals. Those facing financial hardship may qualify for temporary collection relief or installment agreements. Keep track of all IRS communications, and use your account access on the IRS website to view your filing status or payment activity.
Corporations are encouraged to protect sensitive data by filing securely and ensuring that any online submission uses the locked padlock icon before entering personal or financial information.
FAQs
How do I file IRS Form 1120 (2020) if my corporation missed the deadline?
You can still file IRS Form 1120 (2020) for a late tax year if your corporation failed to meet the original deadline. The IRS recommends submitting the return as soon as possible to avoid penalties. You may also request additional information or assistance from the IRS if your business was affected by a disaster.
Can I claim disaster relief for my 2020 income tax return?
Yes, corporations and individuals located in federally declared disaster areas during the 2020 tax year may qualify for disaster relief. The IRS automatically provides deadline extensions for certain filings. However, you should check the IRS disaster resources page for updates and additional information.
What should I report on my income tax return regarding total assets?
Corporations must report total assets as of the end of the tax year on the balance sheet portion of IRS Form 1120 (2020). This helps the IRS determine which schedules are required, such as Schedule M-3 for large corporations. Always review your statement and financial data for accuracy before submission.
How can I get additional information about filing or amendments?
You can request additional information about your income tax return or Form 1120-X amendments directly from the IRS. Corporations can access their account online, view prior transactions, and obtain assistance through official federal resources. It usually takes only a few minutes to confirm your filing status.
What happens if my income tax return shows losses or errors?
If your income tax return shows losses or mistakes, you may need to file an amended return using Form 1120-X. Corporations that have experienced disaster-related losses should review the relief provisions to determine their eligibility for assistance. The IRS can provide information on correction procedures and refund options if applicable.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
