What IRS Form 1120-S (2022) Is For

Form 1120-S is the annual tax return that S corporations must file to report their income, gains, losses, deductions, and credits to the IRS (IRS Instructions for Form 1120-S (2022)). Any corporation that has elected S corporation status by filing Form 2553 and received IRS acceptance must file, even with no income or liability.

When You’d Use Form 1120-S for 2022 (Late or Amended Filing)

You would file Form 1120-S for 2022 late if you missed the March 15, 2023 deadline (without extension) or received IRS notices about missing returns. Amended filings correct errors in income, deductions, or shareholder allocations. Late filing also establishes compliance for future audits or financial documentation. Refund opportunities remain limited by statute.

Key Rules Specific to 2022

• Minimum late filing penalty: $450 for returns filed more than 60 days late.
  
  
• Section 174 rule: Research and experimental expenses must be amortized over five years, ending prior immediate deductions.
  
  
• COVID-related credits: Limited to qualified sick and family leave wages from periods ending October 1, 2021, though reportable in 2022 filings.
  
  
• K-1 penalties: $290 per shareholder for failure to furnish timely forms.
  
  

Step-by-Step (High Level)

1. Gather records and transcripts: Use IRS business account or Form 4506-T.
   
   
2. Complete 2022 Form 1120-S: Use only the 2022 version.
   
   
3. Prepare Schedule K-1s: Accurately reflect shareholder allocations.
   
   
4. Attach required schedules: Schedule M-2, Schedule L, and others as applicable.
   
   
5. File: E-file if required or mail to IRS service center.
   
   
6. Keep copies: Retain full return, proof of filing, and shareholder forms.
   
   

Common Mistakes and How to Avoid Them

• Misreporting shareholder allocations or issuing incomplete K-1s.
  
  
• Errors in Accumulated Adjustments Account (AAA) tracking.
  
  
• Not paying reasonable compensation to shareholder-employees before distributions.
  
  
• Mistakes in Schedule M-1 reconciliations for book vs. tax income.
  
  
• Incorrect or missing EINs causing IRS processing delays.
  
  
• Overlooking state filing obligations linked to federal amendments.
  
  

What Happens After You File

The IRS processes e-filed returns in about 21 days and paper returns in 6–8 weeks. Notices may request additional details or assess penalties. If taxes are owed, payment plans are available via Form 9465. Penalties accrue monthly until resolved. You may appeal assessments by contacting IRS Appeals within 30 days of receiving a notice.

FAQs

What penalties apply for filing my 2022 S corporation return late?

The penalty is $220 per shareholder per month (or part of month) for up to 12 months, regardless of whether tax is owed. If tax is due, add 5% per month of unpaid tax up to 25% maximum. A minimum $450 penalty applies to returns filed more than 60 days late.

Can I get transcripts for my 2022 return to see what the IRS has on file?

Yes. Request business tax transcripts online through the IRS business account or by submitting Form 4506-T. These transcripts show processed returns, adjustments, and account status, but they won’t include corrections made on amended returns. Copies of the actual filed returns require Form 4506 and payment of an additional fee.

How long do I have to claim a refund on an amended 2022 return?

Refund claims are typically allowed for three years from the original filing due date or two years from when tax was paid, whichever is later. For 2022 returns, this means refund opportunities generally expire on March 15, 2026, for calendar-year corporations. After that date, refund claims are no longer valid.

Do I need to amend my state S corporation return if I file an amended federal return?

In most states, yes. States usually require amended returns when federal returns are corrected, especially if taxable income is affected. Requirements, deadlines, and forms vary by state. Failure to amend can lead to discrepancies, penalties, or state-level audits, so always check directly with your state’s revenue or tax agency.

Can I e-file a late 2022 Form 1120-S?

Yes. E-filing is allowed for late returns and is often faster than mailing paper forms. Corporations that file 250 or more returns annually must e-file unless granted a waiver. Smaller corporations may file either electronically or on paper, depending on their preference and available filing software.

What if I can’t pay the taxes owed on my late return?

File the return anyway to stop the failure-to-file penalty. Then request an installment agreement using Form 9465 or apply online if eligible. The IRS offers short-term and long-term payment plans depending on the balance owed. Interest and late payment penalties continue until the balance is fully paid.

Will filing late affect my S corporation election?

No. Filing late does not terminate S corporation status. The election remains in place unless formally revoked or automatically terminated due to ineligible shareholders or excessive passive income issues. However, penalties and interest continue to accrue on unfiled returns, so timely filing protects compliance while maintaining your election status.

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