Form 1120

U.S. Corporation Income Tax Return

Purpose

Form 1120 is the primary tax return used by C corporations to report their income, gains, losses, deductions, credits, and to calculate their tax liability.


Who Must File

  • Domestic corporations (organized in the United States)
  • Certain foreign corporations with income from U.S. sources




Key Sections

  1. Income:Gross receipts or sales
  2. Deductions:Compensation of officers
  3. Tax Computation:Taxable income calculation




Important Deadlines and Considerations

  • Generally due by the 15th day of the fourth month after the end of the corporation's tax year
  • Six-month extension available by filing Form 7004
  • Estimated tax payments may be required throughout the year
  • Requires maintaining detailed financial records and supporting documentation




Significance

  • Determines the corporation's federal income tax liability
  • Provides a comprehensive overview of the corporation's financial activities
  • Serves as a basis for shareholder reporting and potential dividend distributions


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