A Short Guide to Form 1120S

A Short Guide to Form 1120S

A Short Guide to Form 1120S

A Short Guide to Form 1120S

The IRS issues form 1120 for corporations so they can file federal income tax returns. They are further categorized into C and S forms for C-corporations and S-corporations respectively. Since most of the small businesses are registered as S-corp in the tax books, we are going to discuss Form 1120S in detail.

The Requirements to Fill Out a Form 1120S

There is a list of information that you should have in hand to duly fill Form-1120S. If you don’t want to deal with this paperwork on your own, you can ask tax professionals to do this on your behalf. Firms dealing in accounting for small business can take care of the filling of Form 1120S.

These are the pieces of information you will need for filling out Form 1120S.

  • The date of incorporation (your company getting the status of S-corp)
  • The complete list of the products and services that your business offers
  • The Employer Identification Number issued by the IRS
  • The date of S-corp status election (usually the first day of your business’s fiscal year)
  • The balance sheet

Work with any firm of accounting for small businesses to have this information ready at all times and particularly for filling out Form 1120S on time.

You also need to mention the method of accounting that you employ in managing your finances. For example, if the finances are sorted out through accrual accounting or on cash basis. Any good firm offering accounting for small business can help you in setting out your accounting method in the beginning.

You also have to file every payment of $600 or more that has been made to independent contractors for the previous fiscal year. Many S-corp entities that don’t take care of bookkeeping often miss out on filling these payments. Work along with any tax preparation firm from day one. They know which financial transaction details should go into record books. While entering these payments, make sure to dispatch Form 1120S to respective contractors.

With the financial statements furnished by the experts of any good tax preparation firm such as My Count Solutions, you can fill every box in your Form 1120S without exhausting yourself in looking out for the required information. If you don’t want to receive penalties from the IRS, fill and dispatch your Form-1120S on time.

 

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