Form 1120 U.S. Corporation Income Tax Return
INSTRUCTIONS : CORPORATION INCOME TAX RETURN(Form 1120)
Form 1120 is a United States Internal Revenue Service tax form used for corporate tax returns of companies claiming “C' corporation tax designation.
The Form 1120 can be obtained through the I.R.S' website or by obtaining the documents through a local tax office.
The tax form is to be filed by a corporate tax payer in order to calculate corporate taxes for the year.
1. First provide the name of the corporation along with contact information in the top box of the form. Provide the employer identification number, date of incorporation, and total assets as required under the tax codes.
2. Record the gross income of the corporation in lines 1 through 10. Include gross receipts, goods sold, gross profits, dividends, interests, rents, royalties, capital gains, net gains, and any other income sources. Add all of this and put the total amount of gross income in line 11.
3. Next, list all deductions from the year in lines 12 through 28. Add the total amount of deductions and put that amount in line 29.
4. Calculate the total taxes paid and tax credits in lines 30 through 35 to calculate your tax obligation or tax refund.
5. The officer of the corporation can sign the tax return and the preparer must provide their information in the final box.
6. Additional schedules will be required for attachment with your Form 1120.
7. If your company is deducting the cost of goods sold from gross income, these amounts must be accounted for in schedule A.
8. If dividends or special deductions have been claimed on the Form 1120, they must be listed in schedule C.
9. For the compensation of corporate officers, these amounts must be accounted in schedule E.
10. Additionally, schedules J and K must be attached, indicating the accounting method used by the corporation and additional information that can affect the corporate tax rate. Fill out these schedules and attach them to your Form 1120.
11. Finally, attach schedules L, M1, and M2, if you need to supply a balance sheet with your tax return form, reconcile income lost, or an analysis of unappropriated retained earnings.
12. Once completed, your form is ready for filing with the IRS. Retain a copy for the corporation's record.