Form 1120-S (2019)

What Is Form 1120 S 2019?

Form 1120-S (2019) is specifically designed for S corporations to report their income, losses, deductions, and credits for the year 2019. The form helps the IRS assess the tax liability of the S corporation. Understanding the purpose and the steps for filling it out is crucial for compliance and accuracy in reporting.

Purpose of form 1120-S

Form 1120-S is an essential document for S corporations, which are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders then report the income and losses on their personal tax returns and are taxed at their individual income tax rates, allowing S corporations to avoid double taxation on the corporate income. A correctly filled form ensures that the S corporation maintains its tax-compliant status with the Internal Revenue Service.

How to Fill Out the IRS Form 1120 S 2019

Filling out IRS tax forms can be intimidating, but understanding how to fill out the form correctly will help mitigate any potential errors. Here are the critical steps to follow when completing Form 1120-S for the 2019 tax year:

1. Enter the full name of your S Corporation in the designated space at the top of the form.
2. Provide the company's physical address, including the street number, room or suite number. If you’re using a P.O. box instead, refer to the IRS instructions.
3. Fill in the city, state or province, country, and postal code in the provided fields.
4. Specify the date when your corporation's S status became effective.
5. Look up the business activity code that best describes your corporation’s primary business activity and enter it.
6. If your corporation is required to attach Schedule M-3, mark the checkbox provided.
7. Input the Employer Identification Number (EIN) of your corporation.
8. State the date your corporation was incorporated.
9. Report the total dollar amount of assets your corporation holds.
10. Report your corporation's total income, including gross receipts or sales, returns and allowances, cost of goods sold, and other income.
11. Detail all the deductions your corporation is claiming, such as compensation of officers, salaries and wages, repairs and maintenance, bad debts, rents, taxes, and licenses, interest paid, depreciation, depletion, advertising costs, pension, profit-sharing, etc.
12. Calculate the tax your corporation owes and document any payments already made, such as federal income tax withheld, estimated tax payments, and credits.
13. An authorized company officer must sign the form and provide the date and their title.
14. If a paid preparer was involved, their section should be completed with their information, including identification and compensation details.
15. Proceed to Schedule B to answer additional questions regarding the corporate structure, stock ownership, accounting methods, and other information pertinent to the S Corporation's tax situation.
16. Complete Schedule K to allocate each shareholder's proportionate share of income, deductions, credits, etc.
17. In Schedule L, provide the company's financial balance sheets as they appear on the books.
18. Reconcile your book income with the taxable income reported on the return using Schedule M-1.
19. Use Schedule M-2 to analyze the adjustments to the accumulated adjustments account, shareholders’ undistributed taxable income that has previously been taxed, and other adjustments.

Benefits of using PDFliner for your form 1120-S filing

When the time comes to tackle your S corporation's tax documents, choosing the right platform for filing can save you time and effort. PDFliner offers an array of benefits for businesses preparing their Form 1120-S for the 2019 tax year. Here's why using PDFliner can be particularly advantageous:

• Access Anywhere: PDFliner operates online, which means you can access your tax forms from any location with an internet connection. This flexibility is essential for busy business owners who are always on the go.
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• Edit and Correct: The ability to edit your form 1120-S directly within the platform means you can make corrections quickly and efficiently without having to start over or use correction fluid on paper forms.
• Customized Additions: Add checkmarks, dates, or additional text where necessary, giving you full control over the information you include on your tax form template.
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