File Form 1120-S with Inkle
Form 1120-S is the US Income Tax Return for S Corporations. If your company has elected S Corporation status with the IRS, you file this return every year to report your S Corp's income, deductions, gains, and losses. The S Corporation itself does not pay federal income tax. The income passes through to each shareholder, who reports their share on their personal return. Inkle's licensed CPAs prepare the return, handle Schedule K-1s for every shareholder, and file before your deadline.
What is Form 1120-S?
Form 1120-S is the US Income Tax Return for S Corporations. It lets a corporation pass its income, losses, deductions, and credits through directly to its shareholders, rather than paying corporate income tax at the entity level. To file as an S Corporation, a company must have previously filed Form 2553 with the IRS and received approval.
Along with the main return, each shareholder receives a Schedule K-1 showing their individual share of the S Corp's income, deductions, and credits for the year. Inkle prepares K-1s for all shareholders as part of the filing.
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Who can file Form 1120-S?
Form 1120-S applies to corporations that have made a valid S Corporation election with the IRS and whose election remains in effect for the tax year.
S Corporations with active operations
If your S Corp had revenue, expenses, and normal business activity during the year, Form 1120-S reports all of it, with income and deductions flowing through to shareholders via their Schedule K-1s.
S Corporations with no activity
If the S election was accepted and remains effective for the tax year, the corporation files Form 1120-S regardless of business activity. An inactive year does not cancel the filing obligation.
S Corps with multiple shareholders
Each shareholder's K-1 reflects their ownership percentage in the company. Inkle prepares a K-1 for every shareholder as part of filing the return.
Foreign-owned S Corporations
Nonresident aliens cannot be shareholders in an S Corporation. Eligible shareholders are limited to US citizens, resident aliens, certain trusts, and estates. A US citizen living abroad remains eligible and subject to the same filing rules.
Inkle makes filing Form 1120-S simple
We guide you through the Form 1120-S process in clear steps, surfacing exactly what your S Corporation needs to file.
A licensed CPA handles your Form 1120-S from start to finish, reviewing your intake, preparing the complete return, and filing it with the IRS.
Inkle prepares an individual Schedule K-1 for each shareholder alongside the main return, showing their share of the S Corp's income, deductions, and credits for the year.
A dedicated tax expert answers your shareholder and K-1 questions in Inkle chat, with no call to schedule.
Deadline
The deadline to file Form 1120-S is March 15 for calendar-year S Corporations, meaning S Corps whose tax year runs from January 1 through December 31. If you need more time, you can file for a six-month extension using Form 7004, which moves the deadline to September 15. There is no extension available beyond September 15.
Pro Tip
The penalty for a late S Corporation return is $220 per shareholder per month, starting from the original due date. A two-shareholder S Corp that files three months late owes $1,320 in penalties before any other tax considerations come into play. The penalty accrues from the original March 15 deadline, not from the extended deadline if you filed an extension.
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FAQs
A K-1 reports your share of a pass-through entity's income, deductions, and credits. Partnerships and S corporations issue them; the entity pays no tax itself.
It matters because you owe tax on your allocated share whether or not any cash was distributed to you. More on pass-through returns.
Not reliably. The partnership return and its K-1s are built from closed books, so filing from an unreconciled ledger means amending later.
File an extension, finish the bookkeeping, then file. Partners need their K-1s for their own returns, so the delay passes through to them. More on partnership returns.
It reports an S corporation's income, deductions, and credits, and allocates them to shareholders on Schedule K-1 so they report their share personally.
The company itself generally pays no federal income tax. Our comparison of corporate returns covers how it differs from a C-Corp filing.
Form 1120 is filed by C-Corps, which pay tax at the entity level. Form 1120-S is filed by S-Corps, which pass income through to shareholders on K-1s.
Which one you file follows your tax election rather than your legal entity type. A corporation that never elected S status files the standard 1120.
Any corporation with a valid S election in place for the tax year, filed via Form 2553.
The election has to be accepted before the return is due. If it was never made or was made late without relief, the company files a standard Form 1120 instead.
15 March for calendar-year S corporations, a month earlier than the C-Corp deadline. Extensions run six months from there.
The earlier date exists so shareholders receive their K-1s in time for their own April filing. More on corporate returns.
Yes. The obligation follows the election, not the activity. A dormant S corporation still files and still issues K-1s showing zero.
Penalties for a late 1120-S are charged per shareholder per month, so a quiet year can produce a real bill. More on corporate returns.
A monthly penalty charged per shareholder for each month the return is late, running up to a cap. A two-shareholder company accrues it twice over.
Filing an extension on time avoids it. Our guide to the Form 1120 late penalty covers how the corporate penalties work.
