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11834: 1120S - Important Facts


1120S Sub S Corporate

Important Facts About The 1120S

 

  • For 2018 calendar year corporate returns, the filing deadline is March 15.  For a return, the perfection period does not extend beyond March 25. For an extension, the perfection period does not extend beyond March 20.​  Beginning with Drake18, changes to the Schedule B have added 3 new questions.  Questions 9 and 10 relate to the business interest expense limitation introduced by the TCJA ( starting on page 64).  Question 15 simply asks if the corporation is filing a Form 8996. 
  • Forms 8109 and 8109-B, Federal Tax Coupon, cannot be used to pay S corporation taxes (see 1120S instructions).  Make corporate tax deposits electronically.
    • To pay S corporation tax due, use either the PMT screen or EFTPS (Electronic Federal Tax Payment System).
    • To pay estimated taxes, file a deposit via EFTPS.  The need to make estimated tax payments is only required in certain situations.  Thus, the ES worksheet is not required as it is for an 1120 return.
  • To get more information about EFTPS or to enroll in EFTPS, visit https://www.eftps.gov/eftps/ or call 1-800-555-4477.  Additional information about EFTPS is also available in Pub. 966, Electronic Choices to Pay All Your Federal Taxes.
  • To elect for your business to be an 1120S, fill out form 2553 Election by a Small Business Corporation (enter 2553 in the Screen … Code field or click 2553 Election as Small Business Corporation on the Other Forms tab).
    • Print and complete Form 2553, including signature.  The form is not transmitted with the return.  Either mail it to the IRS, or scan it for attachment to the 1120S return for e-filing (see "Attaching Form 2553 as a PDF for e-Filing" in Related Links at the bottom of this page).
    • If an election is to be effective for the tax year you are e-filing, review the filing deadlines in the "When to Make the Election" section of the Instructions for Form 2553.  For an election based on a mailed Form 2553, mail it before the return is e-filed and early enough that the election is effective before e-filing occurs - otherwise the return may be rejected.
  • The maximum number of shareholders is 100.  Shareholders can be individuals, estates, exempt organizations described in section 401(a) or 501(c)(3), or certain trusts described in section 1361(c)(2)(A).
  • Drake Software defaults to a calendar year.  If you are creating a fiscal year return, enter the dates on screen 1.
  • To amend an 1120S, check the amended return box on screen 1.  Then go into the return and make the necessary changes.
  • If you have data entered on the L screen, but the balance sheets are not showing, read the following.
    • If the corporation’s total receipts for the tax year and balance sheets' total assets at the end of the tax year are LESS than $250,000 the Schedules L and M1 are not required, and Question 10 (Question 8 prior to Drake12) of the Schedule B is answered yes.
    • To force the schedules, in the top left corner of the PRNT screen select Force-print Schedules L and M-1.
  • Also on the PRNT screen are options to suppress Schedule M-2, the option to print shareholder adjusted basis worksheets, and the option to prepare an extension (which may also be done directly on the 7004 screen).  From the PRNT screen you may override particular options, including the envelope coversheet.
  • If your 1120S return does not update from the prior year, check in the prior year program to see if the return was marked as Final return.  If the 1120S return was marked Final return in the prior year, it will not update.  If you want to update, go into the prior year return and uncheck the Final return option on screen 1.  Then in this year's software go to Last Year Data > Update 20XX to 20XX, enter the EIN and follow the prompts.
  • To get information to flow to Form 6252 - Installment Sale, enter the information on the 6252 screen in the upper right hand under Current Year and Prior Years columns.
  • If you receive a PIN error message, check the Title and Signature (name) of the officer signing the return.  All fields need to be completed on the PIN screen.
  • You cannot e-file a bankruptcy return.
  • Beginning in Drake10, you can e-file an amended return.  See FAQ U Amended Return e-Filing in data entry.
  • To change an 1120 to an 1120S or an 1120S to an 1120, go to Tools > File Maintenance > Change file type.  Enter the EIN and select the return type to which you would like to change.  Back up the original file before you change the return type.  For more information on available file type conversions, see "Changing File Types" in Related Links at the bottom of this page.
  • Calendar year returns are due on March 15th and the 7004 extends the deadline 6 months, to September 15th (September 17th for TY 2017).  Fiscal year returns are due on the 15th day of the third month after the end of their year.  The 7004 extends the deadline 6 months.

For more information, see Form 1120S instructions


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