What Is Form 1120?
Form 1120 is the annual U.S. Corporation Income Tax Return, filed with the IRS to report a corporation's income, deductions, gains, losses and tax liability for the year. It applies to entities taxed as C corporations under the Internal Revenue Code.
Who Generally Files Form 1120
Form 1120 is generally filed by:
- Domestic corporations, regardless of whether they had taxable income during the year
- Foreign-owned U.S. corporations (in addition to any Form 5472 reporting that may apply — see below)
- Certain LLCs that have elected to be taxed as a corporation
What Information Is Needed
- Prior-year return (if one was filed)
- Trial balance, general ledger, and profit & loss statement
- Balance sheet as of the beginning and end of the tax year
- Bank statements for the tax year
- Fixed asset purchases and disposals
- Payroll reports, if the corporation has employees
- Details of shareholders and ownership percentages
- Loan agreements, if the corporation has related-party or third-party loans
Common Situations Requiring Professional Preparation
- The corporation is foreign-owned, in whole or in part
- The corporation had transactions with related parties (owners, affiliates, or other entities under common control)
- The corporation had little or no revenue but incurred formation or operating expenses
- The corporation is filing for the first time or catching up on prior-year filings
- The corporation operates in more than one state
Foreign Ownership Considerations
When a U.S. corporation is at least 25% foreign-owned, additional reporting generally applies — most notably Form 5472, which is filed together with Form 1120. Whether Form 5472 is required, and what it must report, depends on the ownership structure and the transactions the corporation had during the year. See our Form 5472 Preparation page for detail.
Related-Party Considerations
Transactions between a corporation and its owners or affiliates — contributions, distributions, loans, payments for services, or expense reimbursements — are generally the kind of activity that reporting rules like Form 5472 are designed to capture. Identifying and documenting these transactions correctly is one of the most common sources of errors in foreign-owned corporate filings.
Common Schedules & Issues
| Schedule / Item | Generally Covers |
|---|---|
| Schedule C | Dividends, inclusions and special deductions |
| Schedule J | Tax computation and payments |
| Schedule K | Other information about the corporation |
| Schedule L | Balance sheet per books |
| Schedule M-1 / M-2 | Reconciliation of income and retained earnings |
Which schedules actually apply depends on the corporation's size, activity and elections — not every corporation completes every schedule.
Extensions
A corporation that needs more time to file may generally request an extension using Form 7004. An extension to file is generally not an extension to pay any tax that may be due.
Prior-Year Filings
If a corporation has an outstanding prior-year Form 1120 (or Form 5472, where applicable), we can review the entity's history and help bring filings current. Prior-year compliance is evaluated on a case-by-case basis.
State Filing Considerations
Beyond the federal Form 1120, a corporation may also have state-level corporate tax or franchise tax filing obligations, depending on where it is formed and where it does business. State requirements vary and are reviewed separately from the federal return.
How TaxAcePro Prepares Form 1120
- We review your entity structure, ownership and prior filings
- We identify related-party transactions and confirm what additional reporting (such as Form 5472) may apply
- We prepare the return and applicable schedules
- A licensed professional reviews the return before it's finalized
- You review and approve the return before it's filed
- We e-file with the IRS and provide you with the filed copy
What You Receive
- A completed, filed copy of Form 1120 (and Form 5472, if applicable)
- A summary of what was filed and why
- Guidance on what to track going forward for next year's filing
Need Form 1120 prepared for a foreign-owned U.S. corporation?
Get a professional review of your entity before you file.