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Tax

Form 1120-S (S-Corporation Return)

The IRS form filed by S-corporations to report income, deductions, and allocations to shareholders.

Like the 1065 for partnerships, Form 1120-S is an informational return. S-corp income flows through to shareholders via Schedule K-1.

Due March 15 (calendar-year S-corps). Form 7004 grants a 6-month extension to September 15.

An S-corp election (Form 2553) is required before filing 1120-S. Late or missing elections can be remedied via Rev. Proc. 2013-30 in many cases — but only if discovered.

Common pitfalls

  • Filing a 1120-S without a valid S-corp election in place — the return gets rejected or treated as a C-corp
  • Owner-employees not running payroll — the IRS reclassifies distributions as wages and hits the owner with back payroll tax + penalties
  • Single class of stock violation — voting differences are fine, but preferred returns or differential rights kill the S-corp election

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