Instructions for IRS Form 1120 U.S. Corporation Income Tax Return 2018

January 1, 2018 "Instructions For Irs Form 1120 - U.s. Corporation Income Tax Return" contain the updated filing procedures for the IRS-issued Form 1120. Download your copy of the instructions by clicking the link below.

IRS Form 1120 is tax form released and collected by the Internal Revenue Service of the United States.

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1120
U.S. Corporation Income Tax Return
Section references are to the Internal Revenue
enacted after they were published, go to
the Instructions for Form 8992 for more
Code unless otherwise noted.
IRS.gov/Form1120.
information.
Contents
Page
Foreign-derived intangible income
What's New
(FDII). New section 250 allows a
Future Developments . . . . . . . . . . . .
1
domestic corporation a deduction for the
What's New . . . . . . . . . . . . . . . . . .
1
Tax rates. For tax years beginning after
eligible percentage of FDII and GILTI.
Photographs of Missing Children . . . .
2
2017, the Tax Cuts and Jobs Act (P.L.
Section 250 is effective for tax years
The Taxpayer Advocate Service . . . . .
2
115-97) replaced the graduated corporate
beginning after December 31, 2017. Use
Direct Deposit of Refund . . . . . . . . . .
2
tax structure with a flat 21% corporate tax
Form 8993 to figure the amount of the
rate. See the instructions for
Schedule J,
How To Make a Contribution To
eligible deduction for FDII and GILTI under
Reduce Debt Held by the
Part I, line
2.
section 250. See section 250 and Form
Public . . . . . . . . . . . . . . . . . . .
2
Alternative minimum tax. The
8993 for more information.
How To Get Forms and
alternative minimum tax does not apply to
Publications . . . . . . . . . . . . . . .
2
Deduction for foreign-source portion
corporations for tax years beginning after
General Instructions . . . . . . . . . . . . .
2
of dividends received by domestic cor-
December 31, 2017. In addition,
Purpose of Form . . . . . . . . . . . . . . .
2
porations from specified 10%-owned
corporations may treat a portion of their
Who Must File . . . . . . . . . . . . . . . .
2
foreign corporations. P.L. 115-97
prior year alternative minimum tax credit
When To File . . . . . . . . . . . . . . . . .
3
enacted new section 245A. Section 245A
carryover as refundable. See Form 8827.
permits certain domestic corporations that
Where To File . . . . . . . . . . . . . . . . .
4
Also see the instructions for
Schedule J,
are U.S. shareholders of specified
Who Must Sign . . . . . . . . . . . . . . . .
3
Part III, line
20c.
10%-owned foreign corporations a 100%
Paid Preparer Authorization . . . . . . . .
4
Base erosion minimum tax. If the
deduction for the foreign source portion of
Assembling the Return . . . . . . . . . . .
5
corporation had gross receipts of at least
any dividend received from that specified
Tax Payments . . . . . . . . . . . . . . . .
5
$500 million in any one of the 3 tax years
10%-owned foreign corporation. Section
Estimated Tax Payments . . . . . . . . .
5
preceding the current tax year, complete
245A applies to all dividend distributions
Interest and Penalties . . . . . . . . . . . .
5
Form 8991. See section 59A and the
after December 31, 2017. See new
Accounting Methods . . . . . . . . . . . .
6
Instructions for Form 8991. Also see the
section 245A.
Accounting Period . . . . . . . . . . . . . .
6
instructions for
Schedule J, Part I, line
3,
Treatment of deferred foreign income
Rounding Off to Whole Dollars . . . . . .
6
and the instructions for
Schedule K,
upon transition to participation ex-
Recordkeeping . . . . . . . . . . . . . . . .
6
Question
22.
emption system of taxation. U.S.
Other Forms and Statements That
Small business taxpayers. Effective for
shareholders of certain specified foreign
May Be Required . . . . . . . . . . .
6
tax years beginning after 2017, P.L.
corporations (as defined under section
Specific Instructions . . . . . . . . . . . . .
7
115-97 expanded the eligibility of small
965(e), as amended by P.L. 115-97) may
Period Covered
. . . . . . . . . . . . . . .
7
business taxpayers to use the cash
have an inclusion under section 965
Name and Address . . . . . . . . . . . . .
8
method. See
Accounting
Methods, later.
based on the accumulated post-1986
Identifying Information . . . . . . . . . . .
8
deferred foreign income of the specified
Address change for filing returns. The
Employer Identification Number
foreign corporations determined as of
filing address for certain returns filed after
(EIN) . . . . . . . . . . . . . . . . . . .
9
November 2, 2017, or December 31,
June 17, 2019, has changed. See
Where
Total Assets . . . . . . . . . . . . . . . . . .
9
2017. The U.S shareholders may elect to
To
File, later.
Initial Return, Final Return, Name
pay the liability under section 965 in eight
Change, or Address Change . . . .
9
Limitation on business interest ex-
installments. See section 965, as
Income . . . . . . . . . . . . . . . . . . . . .
9
pense. For tax years beginning after
amended.
Deductions . . . . . . . . . . . . . . . . .
10
2017, taxpayers who deduct business
Domestic production activities deduc-
interest are required to file Form 8990,
Schedule C. Dividends, Inclusions,
tion (DPAD). The DPAD has been
and Special Deductions . . . . . .
17
Limitation on Business Interest Expense
repealed for tax years beginning after
Under Section 163(j), unless an exception
Schedule J. Tax Computation and
2017 with limited exceptions. See
Line 26.
Payment . . . . . . . . . . . . . . . .
19
for filing is met. See the instructions for
Other
Deductions, later.
Schedule K. Other Information . . . . .
21
Schedule K,
Questions 23
and 24. For
more information, see Form 8990 and the
Schedule L. Balance Sheets per
Net operating loss. The 2-year
Books . . . . . . . . . . . . . . . . . .
23
Instructions for Form 8990.
carryback rule does not apply to NOLs
Schedule M-1. Reconciliation of
arising in tax years ending after December
Global intangible low-taxed income
Income (Loss) per Books With
31, 2017. Exceptions apply to certain
(GILTI). P.L. 115-97 enacted new section
Income per Return . . . . . . . . . .
23
farming losses and NOLs of insurance
951A, which requires U.S. shareholders of
Principal Business Activity Codes . . .
26
companies other than life insurance
controlled foreign corporations (CFCs) to
Index . . . . . . . . . . . . . . . . . . . . .
29
companies. See section 172(b). Also see
include in gross income the shareholder's
Net operating loss
(NOL), later.
GILTI for years in which they are U.S.
Future Developments
shareholders of CFCs for tax years of
Related party amounts paid or ac-
CFCs beginning after December 31, 2017.
crued in hybrid transactions or with
For the latest information about
Use Form 8992 to figure the domestic
hybrid entities. A deduction for certain
developments related to Form 1120 and
corporation's GILTI. See section 951A and
interest or royalty paid or accrued to a
its instructions, such as legislation
Jan 16, 2019
Cat. No. 11455T
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1120
U.S. Corporation Income Tax Return
Section references are to the Internal Revenue
enacted after they were published, go to
the Instructions for Form 8992 for more
Code unless otherwise noted.
IRS.gov/Form1120.
information.
Contents
Page
Foreign-derived intangible income
What's New
(FDII). New section 250 allows a
Future Developments . . . . . . . . . . . .
1
domestic corporation a deduction for the
What's New . . . . . . . . . . . . . . . . . .
1
Tax rates. For tax years beginning after
eligible percentage of FDII and GILTI.
Photographs of Missing Children . . . .
2
2017, the Tax Cuts and Jobs Act (P.L.
Section 250 is effective for tax years
The Taxpayer Advocate Service . . . . .
2
115-97) replaced the graduated corporate
beginning after December 31, 2017. Use
Direct Deposit of Refund . . . . . . . . . .
2
tax structure with a flat 21% corporate tax
Form 8993 to figure the amount of the
rate. See the instructions for
Schedule J,
How To Make a Contribution To
eligible deduction for FDII and GILTI under
Reduce Debt Held by the
Part I, line
2.
section 250. See section 250 and Form
Public . . . . . . . . . . . . . . . . . . .
2
Alternative minimum tax. The
8993 for more information.
How To Get Forms and
alternative minimum tax does not apply to
Publications . . . . . . . . . . . . . . .
2
Deduction for foreign-source portion
corporations for tax years beginning after
General Instructions . . . . . . . . . . . . .
2
of dividends received by domestic cor-
December 31, 2017. In addition,
Purpose of Form . . . . . . . . . . . . . . .
2
porations from specified 10%-owned
corporations may treat a portion of their
Who Must File . . . . . . . . . . . . . . . .
2
foreign corporations. P.L. 115-97
prior year alternative minimum tax credit
When To File . . . . . . . . . . . . . . . . .
3
enacted new section 245A. Section 245A
carryover as refundable. See Form 8827.
permits certain domestic corporations that
Where To File . . . . . . . . . . . . . . . . .
4
Also see the instructions for
Schedule J,
are U.S. shareholders of specified
Who Must Sign . . . . . . . . . . . . . . . .
3
Part III, line
20c.
10%-owned foreign corporations a 100%
Paid Preparer Authorization . . . . . . . .
4
Base erosion minimum tax. If the
deduction for the foreign source portion of
Assembling the Return . . . . . . . . . . .
5
corporation had gross receipts of at least
any dividend received from that specified
Tax Payments . . . . . . . . . . . . . . . .
5
$500 million in any one of the 3 tax years
10%-owned foreign corporation. Section
Estimated Tax Payments . . . . . . . . .
5
preceding the current tax year, complete
245A applies to all dividend distributions
Interest and Penalties . . . . . . . . . . . .
5
Form 8991. See section 59A and the
after December 31, 2017. See new
Accounting Methods . . . . . . . . . . . .
6
Instructions for Form 8991. Also see the
section 245A.
Accounting Period . . . . . . . . . . . . . .
6
instructions for
Schedule J, Part I, line
3,
Treatment of deferred foreign income
Rounding Off to Whole Dollars . . . . . .
6
and the instructions for
Schedule K,
upon transition to participation ex-
Recordkeeping . . . . . . . . . . . . . . . .
6
Question
22.
emption system of taxation. U.S.
Other Forms and Statements That
Small business taxpayers. Effective for
shareholders of certain specified foreign
May Be Required . . . . . . . . . . .
6
tax years beginning after 2017, P.L.
corporations (as defined under section
Specific Instructions . . . . . . . . . . . . .
7
115-97 expanded the eligibility of small
965(e), as amended by P.L. 115-97) may
Period Covered
. . . . . . . . . . . . . . .
7
business taxpayers to use the cash
have an inclusion under section 965
Name and Address . . . . . . . . . . . . .
8
method. See
Accounting
Methods, later.
based on the accumulated post-1986
Identifying Information . . . . . . . . . . .
8
deferred foreign income of the specified
Address change for filing returns. The
Employer Identification Number
foreign corporations determined as of
filing address for certain returns filed after
(EIN) . . . . . . . . . . . . . . . . . . .
9
November 2, 2017, or December 31,
June 17, 2019, has changed. See
Where
Total Assets . . . . . . . . . . . . . . . . . .
9
2017. The U.S shareholders may elect to
To
File, later.
Initial Return, Final Return, Name
pay the liability under section 965 in eight
Change, or Address Change . . . .
9
Limitation on business interest ex-
installments. See section 965, as
Income . . . . . . . . . . . . . . . . . . . . .
9
pense. For tax years beginning after
amended.
Deductions . . . . . . . . . . . . . . . . .
10
2017, taxpayers who deduct business
Domestic production activities deduc-
interest are required to file Form 8990,
Schedule C. Dividends, Inclusions,
tion (DPAD). The DPAD has been
and Special Deductions . . . . . .
17
Limitation on Business Interest Expense
repealed for tax years beginning after
Under Section 163(j), unless an exception
Schedule J. Tax Computation and
2017 with limited exceptions. See
Line 26.
Payment . . . . . . . . . . . . . . . .
19
for filing is met. See the instructions for
Other
Deductions, later.
Schedule K. Other Information . . . . .
21
Schedule K,
Questions 23
and 24. For
more information, see Form 8990 and the
Schedule L. Balance Sheets per
Net operating loss. The 2-year
Books . . . . . . . . . . . . . . . . . .
23
Instructions for Form 8990.
carryback rule does not apply to NOLs
Schedule M-1. Reconciliation of
arising in tax years ending after December
Global intangible low-taxed income
Income (Loss) per Books With
31, 2017. Exceptions apply to certain
(GILTI). P.L. 115-97 enacted new section
Income per Return . . . . . . . . . .
23
farming losses and NOLs of insurance
951A, which requires U.S. shareholders of
Principal Business Activity Codes . . .
26
companies other than life insurance
controlled foreign corporations (CFCs) to
Index . . . . . . . . . . . . . . . . . . . . .
29
companies. See section 172(b). Also see
include in gross income the shareholder's
Net operating loss
(NOL), later.
GILTI for years in which they are U.S.
Future Developments
shareholders of CFCs for tax years of
Related party amounts paid or ac-
CFCs beginning after December 31, 2017.
crued in hybrid transactions or with
For the latest information about
Use Form 8992 to figure the domestic
hybrid entities. A deduction for certain
developments related to Form 1120 and
corporation's GILTI. See section 951A and
interest or royalty paid or accrued to a
its instructions, such as legislation
Jan 16, 2019
Cat. No. 11455T
related party pursuant to a hybrid
The corporation has tried repeatedly to
forms and publications it may need on
transaction or by, or to, a hybrid entity may
contact the IRS but no one has
IRS.gov/FormsPubs. Otherwise, the
be disallowed to the extent the related
responded, or the IRS hasn't responded
corporation can go to
IRS.gov/
party, under its tax laws, does not include
by the date promised.
OrderForms
to place an order and have
the amount in income or is allowed a
forms mailed to it. The corporation should
The TAS tax toolkit at
deduction with respect to the amount. See
receive its order within 10 business days.
TaxpayerAdvocate.IRS.gov
can help the
section 267A for more information. Also
corporation understand these rights.
General Instructions
see the instructions for
Schedule K,
Question
21.
TAS has offices in every state, the
District of Columbia, and Puerto Rico.
Purpose of Form
Special rules for eligible gains inves-
Local advocates' numbers are in their
ted in Qualified Opportunity Funds.
Use Form 1120, U.S. Corporation Income
local directories and at
Effective December 22, 2017, section
Tax Return, to report the income, gains,
TaxpayerAdvocate.IRS.gov. The
1400Z-2 provides shareholders investing
losses, deductions, credits, and to figure
corporation can also call TAS at
eligible gains in Qualified Opportunity
the income tax liability of a corporation.
1-877-777-4778.
Funds (QOFs) tax-favored investments. If
the corporation is operating as a QOF,
Who Must File
TAS also works to resolve large-scale
Form 8996 may be required. See Form
or systemic problems that affect many
Unless exempt under section 501, all
8996 and the Instructions for Form 8996.
taxpayers. If the corporation knows of one
domestic corporations (including
Also see Form 1120, Schedule K,
of these broad issues, please report it to
corporations in bankruptcy) must file an
Question 25.
TAS through the Systemic Advocacy
income tax return whether or not they
Management System at IRS.gov/SAMS.
Credit for paid family and medical
have taxable income. Domestic
leave. Corporations may qualify for a
corporations must file Form 1120, unless
For more information, go to
IRS.gov/
credit for wages paid in tax years
they are required, or elect to file a special
Advocate.
beginning after 2017 to qualifying
return. See
Special Returns for Certain
employees on family and medical leave.
Direct Deposit of Refund
Organizations
below.
See section 45S. Also see Form 8994 and
To request a direct deposit of the
Entities electing to be taxed as corpo-
its instructions.
corporation's income tax refund into an
rations. A domestic entity electing to be
At the time these instructions went
account at a U.S. bank or other financial
classified as an association taxable as a
to print, several credits and
!
institution, attach Form 8050, Direct
corporation must file Form 1120, unless it
deductions available to
Deposit of Corporate Tax Refund. See the
is required to or elects to file a special
CAUTION
corporations expired December 31, 2017.
instructions for line 36.
return listed under
Special Returns for
To find out if legislation extended the
Certain Organizations
below. The entity
credits and deductions and made them
How To Make a
also must file Form 8832, Entity
available for 2018, go to
IRS.gov/
Contribution To Reduce
Classification Election, and attach a copy
FormsUpdates.
of Form 8832 to Form 1120 (or the
Debt Held by the Public
applicable return) for the year of the
Photographs of
election. For more information, see Form
To help reduce debt held by the public,
8832 and its instructions.
make a check payable to “Bureau of the
Missing Children
Public Debt.” Send it to: Bureau of the
Limited liability companies (LLC). If an
The Internal Revenue Service is a proud
Public Debt, Department G, P.O. Box
entity with more than one owner was
partner with the
National Center for
2188, Parkersburg, WV 26106-2188. Or,
formed as an LLC under state law, it
Missing & Exploited Children®
(NCMEC).
enclose a check with the income tax
generally is treated as a partnership for
Photographs of missing children selected
return.
federal income tax purposes and files
by the Center may appear in instructions
Form 1065, U.S. Return of Partnership
Do not add the contributions to any tax
on pages that would otherwise be blank.
Income. Generally, a single-member LLC
the corporation may owe. Contributions to
You can help bring these children home
is disregarded as an entity separate from
reduce debt held by the public are
by looking at the photographs and calling
its owner and reports its income and
deductible subject to the rules and
1-800-THE-LOST (1-800-843-5678) if you
deductions on its owner's federal income
limitations for charitable contributions.
recognize a child.
tax return. The LLC can file a Form 1120
How To Get Forms
only if it has filed Form 8832 to elect to be
The Taxpayer Advocate
treated as an association taxable as a
and Publications
Service
corporation. For more information about
LLCs, see Pub. 3402, Taxation of Limited
The Taxpayer Advocate Service (TAS) is
Internet. You can access the IRS website
Liability Companies.
an independent organization within the
24 hours a day, 7 days a week, at IRS.gov
IRS that helps taxpayers and protects
to:
Corporations engaged in farming. A
taxpayer rights. TAS's job is to ensure that
Download forms, instructions, and
corporation (other than a corporation that
every taxpayer is treated fairly and knows
publications;
is a subchapter T cooperative) that
and understands their rights under the
Order IRS products online;
engages in farming should use Form 1120
Taxpayer Bill of
Rights.
Research your tax questions online;
to report the income (loss) from such
Search publications online by topic or
activities. Enter the income and
As a taxpayer, the corporation has
keyword;
deductions of the corporation according to
rights that the IRS must abide by in its
View Internal Revenue Bulletins (IRBs)
the instructions for lines 1 through 10 and
dealings with the corporation. TAS can
published in recent years; and
12 through 29.
help the corporation if:
Sign up to receive local and national tax
A problem is causing financial difficulty
Ownership interest in a Financial As-
news by email.
for the business.
set Securitization Investment Trust
The business is facing an immediate
Tax forms and publications. The
(FASIT). Special rules apply to a FASIT in
threat of adverse action.
corporation can download or print all of the
Instructions for Form 1120
-2-
existence on October 22, 2004, to the
does not, however, apply to certain
Subchapter T
extent that regular interests issued by the
returns.
cooperative association
FASIT before October 22, 2004, continue
1120-C
(including a farmers'
Certain corporations with total assets of
to remain outstanding in accordance with
cooperative)
$10 million or more that file at least 250
their original terms.
returns a year are required to e-file Form
If a corporation holds an ownership
Entity that elects to be
1120. See Regulations section
treated as a real estate
interest in a FASIT to which these special
301.6011-5. However, these corporations
mortgage investment
1066
rules apply, it must report all items of
can request a waiver of the electronic filing
conduit (REMIC) under
income, gain, deductions, losses, and
requirements. See Notice 2010-13,
section 860D
credits on the corporation's income tax
2010-4 I.R.B. 327.
return (except as provided in section
Interest charge domestic
860H). Show a breakdown of the items on
international sales
1120-IC-DISC
For more information, visit
IRS.gov/
an attached statement. For more
corporation (section 992)
Businesses.
information, see sections 860H and 860L
Foreign corporation
When To File
(repealed with certain exceptions).
(other than life or
Foreign-owned domestic disregarded
Generally, a corporation must file its
property and casualty
1120-F
entities. If a foreign person, including a
insurance company filing
income tax return by the 15th day of the
foreign corporation, wholly owns a
Form 1120-L or Form
4th month after the end of its tax year. A
1120-PC)
domestic disregarded entity (DE), the
new corporation filing a short-period return
domestic DE is treated as a domestic
generally must file by the 15th day of the
Foreign sales
corporation separate from its owner (the
1120-FSC
4th month after the short period ends. A
corporation (section 922)
foreign corporation) for the limited
corporation that has dissolved generally
purposes of the requirements under
must file by the 15th day of the 4th month
Condominium
section 6038A that apply to 25%
after the date it dissolved.
management, residential
foreign-owned domestic corporations.
real estate
However, a corporation with a fiscal tax
While a DE is not required to file a U.S.
management, or
year ending June 30 must file by the 15th
timeshare association
1120-H
income tax return, a DE covered by these
that elects to be treated
day of the 3rd month after the end of its
rules may be required to file a pro forma
as a homeowners
tax year. A corporation with a short tax
Form 1120 with Form 5472 attached by
association under
year ending anytime in June will be
the due date (including extensions) of the
section 528
treated as if the short year ended on June
return. See the Instructions for Form 5472
30, and must file by the 15th day of the 3rd
for additional information and coordination
Life insurance company
1120-L
month after the end of its tax year.
with Form 5472 reporting by the domestic
(section 801)
DE.
If the due date falls on a Saturday,
Fund set up to pay for
Special Returns for
Sunday, or legal holiday, the corporation
nuclear
1120-ND
can file on the next business day.
decommissioning costs
Certain Organizations
(section 468A)
Private Delivery Services
Property and casualty
Instead of filing Form 1120, certain organizations,
Corporations can use certain private
insurance company
1120-PC
as shown below, file special returns.
delivery services (PDS) designated by the
(section 831)
IRS to meet the “timely mailing as timely
If the organization is a:
File Form
filing” rule for tax returns. Go to
IRS.gov/
Political organization
1120-POL
PDS.
(section 527)
Exempt organization
The PDS can tell you how to get written
with unrelated trade or
990-T
Real estate investment
1120-REIT
business income
proof of the mailing date.
trust (section 856)
Religious or apostolic
For the IRS mailing address to use if
Regulated investment
1120-RIC
organization exempt
1065
company (section 851)
you’re using a PDS, go to
IRS.gov/
under section 501(d)
PDSstreetAddresses.
S corporation (section
1120S
Private delivery services can't
Entity formed as a
1361)
limited liability company
deliver items to P.O. boxes. You
!
under state law and
Settlement fund
must use the U.S. Postal Service
1065
1120-SF
CAUTION
treated as a partnership
(section 468B)
to mail any item to an IRS P.O. box
for federal income tax
address.
purposes
Electronic Filing
Extension of Time To File
Corporations generally can electronically
File Form 7004, Application for Automatic
file (e-file) Form 1120, related forms,
Extension of Time To File Certain
schedules, and attachments; Form 7004
Business Income Tax, Information, and
(automatic extension of time to file); and
Other Returns, to request an extension of
Forms 940, 941, and 944 (employment tax
time to file. Generally, the corporation
returns). If there is a balance due, the
must file Form 7004 by the regular due
corporation can authorize an electronic
date of the return. See the Instructions for
funds withdrawal while e-filing. Form 1099
Form 7004.
and other information returns also can be
electronically filed. The option to e-file
Who Must Sign
The return must be signed and dated by:
Instructions for Form 1120
-3-
Where To File
The president, vice president, treasurer,
assistant treasurer, chief accounting
File the corporation's return at the applicable IRS address listed below.
officer; or
Any other corporate officer (such as tax
If the corporation's principal
And the total assets at
officer) authorized to sign.
business, office, or agency
the end of the tax year
is located in:
are:
Use the following address:
If a return is filed on behalf of a
corporation by a receiver, trustee, or
For returns filed January 1, 2019, through June 17, 2019
assignee, the fiduciary must sign the
Connecticut, Delaware, District
Less than $10 million
Department of the Treasury
return, instead of the corporate officer.
of Columbia, Florida, Indiana,
and Schedule M-3 is not
Internal Revenue Service Center
Returns and forms signed by a receiver or
Maine, Maryland,
filed
Cincinnati, OH 45999-0012
trustee in bankruptcy on behalf of a
Massachusetts, New
corporation must be accompanied by a
$10 million or more, or
Department of the Treasury
Hampshire, New Jersey, New
copy of the order or instructions of the
less than $10 million and
Internal Revenue Service Center
York, North Carolina, Ohio,
court authorizing signing of the return or
Schedule M-3 is filed
Ogden, UT 84201-0012
Pennsylvania, Rhode Island,
form.
South Carolina, Vermont,
If an employee of the corporation
Virginia, West Virginia
completes Form 1120, the paid preparer
Georgia, Illinois, Kentucky,
Less than $10 million
Department of the Treasury
space should remain blank. Anyone who
Michigan, Tennessee,
and Schedule M-3 is not
Internal Revenue Service Center
prepares Form 1120 but does not charge
Wisconsin
filed
Kansas City, MO 64999-0012
the corporation should not complete that
section. Generally, anyone who is paid to
$10 million or more, or
Department of the Treasury
prepare the return must sign it and fill in
less than $10 million and
Internal Revenue Service Center
the “Paid Preparer Use Only” area.
Schedule M-3 is filed
Ogden, UT 84201-0012
Alabama, Alaska, Arizona,
The paid preparer must complete the
required preparer information and:
Arkansas, California,
Colorado, Hawaii, Idaho, Iowa,
Sign the return in the space provided
Kansas, Louisiana, Minnesota,
for the preparer's signature.
Department of the Treasury
Mississippi, Missouri,
Give a copy of the return to the
Any amount
Internal Revenue Service Center
Montana, Nebraska, Nevada,
taxpayer.
Ogden, UT 84201-0012
New Mexico, North Dakota,
A paid preparer may sign original
Oklahoma, Oregon, South
or amended returns by rubber
Dakota, Texas, Utah,
TIP
stamp, mechanical device, or
Washington, Wyoming
computer software program.
A foreign country or U.S.
Internal Revenue Service Center
possession
Any amount
P.O. Box 409101
Paid Preparer
Ogden, UT 84409
Authorization
For returns filed after June 17, 2019
If the corporation wants to allow the IRS to
Connecticut, Delaware, District
Less than $10 million
Department of the Treasury
discuss its 2018 tax return with the paid
of Columbia, Georgia, Illinois,
and Schedule M-3 is not
Internal Revenue Service Center
preparer who signed it, check the “Yes”
Indiana, Kentucky, Maine,
filed
Kansas City, MO 64999-0012
box in the signature area of the return.
Maryland, Massachusetts,
$10 million or more, or
Department of the Treasury
This authorization applies only to the
Michigan, New Hampshire,
less than $10 million and
Internal Revenue Service Center
individual whose signature appears in the
New Jersey, New York, North
Schedule M-3 is filed
Ogden, UT 84201-0012
“Paid Preparer Use Only” section of the
Carolina, Ohio, Pennsylvania,
return. It does not apply to the firm, if any,
Rhode Island, South Carolina,
shown in that section.
Tennessee, Vermont, Virginia,
West Virginia, Wisconsin
If the “Yes” box is checked, the
corporation is authorizing the IRS to call
Alabama, Alaska, Arizona,
the paid preparer to answer any questions
Arkansas, California,
that may arise during the processing of its
Colorado, Florida, Hawaii,
return. The corporation is also authorizing
Idaho, Iowa, Kansas,
the paid preparer to:
Louisiana, Minnesota,
Department of the Treasury
Give the IRS any information that is
Mississippi, Missouri,
Any amount
Internal Revenue Service Center
missing from the return,
Montana, Nebraska, Nevada,
Ogden, UT 84201-0012
Call the IRS for information about the
New Mexico, North Dakota,
processing of the return or the status of
Oklahoma, Oregon, South
any related refund or payment(s), and
Dakota, Texas, Utah,
Respond to certain IRS notices about
Washington, Wyoming
math errors, offsets, and return
A foreign country or U.S.
Internal Revenue Service Center
preparation.
possession
Any amount
P.O. Box 409101
The corporation is not authorizing the
Ogden, UT 84409
paid preparer to receive any refund check,
bind the corporation to anything (including
any additional tax liability), or otherwise
A group of corporations with members located in more than one service center area will
represent the corporation before the IRS.
often keep all the books and records at the principal office of the managing corporation.
The authorization will automatically end
In this case, the tax returns of the corporations may be filed with the service center for
no later than the due date (excluding
the area in which the principal office of the managing corporation is located.
Instructions for Form 1120
-4-
Electronic Deposit
extensions) for filing the corporation's
Use Form 1120-W, Estimated Tax for
2019 tax return. If the corporation wants to
Corporations, as a worksheet to compute
Requirement
expand the paid preparer's authorization
estimated tax. See the Instructions for
Corporations must use electronic funds
or revoke the authorization before it ends,
Form 1120-W.
transfer to make all federal tax deposits
see Pub. 947, Practice Before the IRS and
Penalties may apply if the corporation
(such as deposits of employment, excise,
Power of Attorney.
does not make required estimated tax
and corporate income tax). Generally,
payment deposits. See Estimated tax
Assembling the Return
electronic funds transfers are made using
penalty below.
the Electronic Federal Tax Payment
If the corporation overpaid estimated
To ensure that the corporation's tax return
System (EFTPS). However, if the
tax, it may be able to get a quick refund by
is correctly processed, attach all
corporation does not want to use EFTPS,
filing Form 4466, Corporation Application
schedules and other forms after page 6 of
it can arrange for its tax professional,
for Quick Refund of Overpayment of
Form 1120 in the following order.
financial institution, payroll service, or
Estimated Tax. See the instructions for
1. Schedule N (Form 1120).
other trusted third party to make deposits
Schedule J, Part III, line 15, later.
on its behalf. Also, it may arrange for its
2. Schedule D (Form 1120).
Estimated tax penalty. A corporation
financial institution to submit a same-day
3. Schedule O (Form 1120).
that does not make estimated tax
payment (discussed below) on its behalf.
4. Form 8050.
payments when due may be subject to an
EFTPS is a free service provided by the
underpayment penalty for the period of
Department of the Treasury. Services
5. Form 1125-A.
underpayment. Generally, a corporation is
provided by a tax professional, financial
6. Form 4136.
subject to the penalty if its tax liability is
institution, payroll service, or other third
7. Form 8941.
$500 or more and it did not timely pay at
party may have a fee.
least the smaller of:
8. Form 3800.
To get more information about EFTPS
Its tax liability for the current year, or
9. Additional schedules in
or to enroll in EFTPS, visit
www.eftps.gov
Its prior year's tax.
alphabetical order.
or call 1-800-555-4477 (TTY/TDD
Use Form 2220, Underpayment of
10. Additional forms in numerical order.
1-800-733-4829).
Estimated Tax by Corporations, to see if
11. Supporting statements and
the corporation owes a penalty and to
Depositing on time. For any deposit
attachments.
figure the amount of the penalty. If Form
made by EFTPS to be on time, the
2220 is completed, enter the penalty on
corporation must submit the deposit by 8
Complete every applicable entry space
line 34. See the instructions for line 34.
p.m. Eastern time the day before the date
on Form 1120. Do not enter “See
the deposit is due. If the corporation uses
Attached” or “Available Upon Request”
Interest and Penalties
a third party to make deposits on its
instead of completing the entry spaces. If
behalf, they may have different cutoff
more space is needed on the forms or
If the corporation receives a notice
times.
schedules, attach separate sheets using
about penalties after it files its
!
the same size and format as the printed
Same-day wire payment option. If the
return, send the IRS an
CAUTION
forms.
corporation fails to submit a deposit
explanation and we will determine if the
transaction on EFTPS by 8 p.m. Eastern
corporation meets reasonable-cause
If there are supporting statements and
time the day before the date a deposit is
criteria. Do not attach an explanation
attachments, arrange them in the same
due, it can still make its deposit on time by
when the corporation's return is filed.
order as the schedules or forms they
using the Federal Tax Collection Service
support and attach them last. Show the
(FTCS). To use the same-day wire
Interest. Interest is charged on taxes
totals on the printed forms. Enter the
payment method, the corporation will need
paid late even if an extension of time to file
corporation's name and EIN on each
to make arrangements with its financial
is granted. Interest is also charged on
supporting statement or attachment.
institution ahead of time regarding
penalties imposed for failure to file,
availability, deadlines, and costs.
negligence, fraud, substantial valuation
Note. If the corporation had tax withheld
Financial institutions may charge a fee for
misstatements, substantial
under Chapter 3 or 4 of the Internal
payments made this way. To learn more
understatements of tax, and reportable
Revenue Code and received a Form
about the information the corporation will
transaction understatements from the due
1042-S, Form 8805, or Form 8288-A
need to provide to its financial institution to
date (including extensions) to the date of
showing the amount of income tax
make a same-day wire payment, go to
payment. The interest charge is figured at
withheld, attach such form(s) to the
IRS.gov/SameDayWire.
a rate determined under section 6621.
corporation’s income tax return to claim a
withholding credit. The corporation should
Late filing of return. A corporation that
Estimated Tax Payments
report the tax withheld on Schedule J, Part
does not file its tax return by the due date,
III, line 20d. See the instructions for
including extensions, may be penalized
Generally, the following rules apply to the
Schedule J, Part III, line
20d.
5% of the unpaid tax for each month or
corporation's payments of estimated tax.
part of a month the return is late, up to a
The corporation must make installment
Tax Payments
maximum of 25% of the unpaid tax. The
payments of estimated tax if it expects its
minimum penalty for a return that is over
Generally, the corporation must pay any
total tax for the year (less applicable
60 days late is the smaller of the tax due
tax due in full no later than the due date for
credits) to be $500 or more.
or $210. The penalty will not be imposed if
filing its tax return (not including
The installments are due by the 15th
the corporation can show that the failure to
extensions). See the instructions for
day of the 4th, 6th, 9th, and 12th months
file on time was due to reasonable cause.
line 35. If the due date falls on a Saturday,
of the tax year. If any date falls on a
Sunday, or legal holiday, the payment is
See Caution above.
Saturday, Sunday, or legal holiday, the
due on the next day that isn't a Saturday,
installment is due on the next regular
Late payment of tax. A corporation that
Sunday, or legal holiday.
business day.
does not pay the tax when due generally
The corporation must use electronic
may be penalized
/
of 1% of the unpaid
1
2
funds transfer to make installment
tax for each month or part of a month the
payments of estimated tax.
Instructions for Form 1120
-5-
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