2019 Instructions For Form 1120-S - Internal Revenue Service

The Taxpayer AdvocateServiceThe Taxpayer Advocate Service (TAS) isan independent organization within theIRS that helps taxpayers and protectstaxpayer rights. TAS's job is to ensure thatevery taxpayer is treated fairly and knowsand understands their rights under theTaxpayer Bill of Rights.As a taxpayer, the corporation hasrights that the IRS must abide by in itsdealings with the corporation. TAS canhelp the corporation if: A problem is causing financial difficultyfor the business; The business is facing an immediatethreat of adverse action; or The corporation has tried repeatedly tocontact the IRS but no one hasresponded, or the IRS hasn't respondedby the date promised.TAS has offices in every state, theDistrict of Columbia, and Puerto Rico.Local advocates' numbers are in theirlocal directories and atTaxpayerAdvocate.IRS.gov. Thecorporation can also call TAS at1-877-777-4778.TAS also works to resolve large-scaleor systemic problems that affect manytaxpayers. If the corporation knows of oneof these broad issues, please report it toTAS through the Systemic AdvocacyManagement System at IRS.gov/SAMS.For more information, go to IRS.gov/Advocate.Direct Deposit of RefundTo request a direct deposit of thecorporation's income tax refund into anaccount at a U.S. bank or other financialinstitution, attach Form 8050, DirectDeposit of Corporate Tax Refund. See theinstructions for line 27.How To Get Formsand PublicationsInternet. You can access the IRS website24 hours a day, 7 days a week, at IRS.govto: Download forms, instructions, andpublications; Order IRS products online; Research your tax questions online; Search publications online by topic orkeyword; View Internal Revenue Bulletins (IRBs)published in recent years; and Sign up to receive local and national taxnews by email.Tax forms and publications. Thecorporation can download or print all of theforms and publications it may need onIRS.gov/FormsPubs. Otherwise, thecorporation can go to IRS.gov/OrderForms to place an order and haveforms mailed to it. The corporation shouldreceive its order within 10 business days.General InstructionsPurpose of FormUse Form 1120-S to report the income,gains, losses, deductions, credits, andother information of a domesticcorporation or other entity for any tax yearcovered by an election to be an Scorporation.How To Make the ElectionFor details about the election, see Form2553, Election by a Small BusinessCorporation, and the Instructions for Form2553.Who Must FileA corporation or other entity must file Form1120-S if (a) it elected to be an Scorporation by filing Form 2553, (b) theIRS accepted the election, and (c) theelection remains in effect. After filing Form2553, you should have receivedconfirmation that Form 2553 wasaccepted. If you didn't receive notificationof acceptance or nonacceptance of theelection within 2 months of filing Form2553 (5 months if you checked box Q1 toask for a letter ruling), take follow-upaction by calling 1-800-829-4933. Don'tfile Form 1120-S for any tax year beforethe year the election takes effect.Relief for late elections. If you haven'tfiled Form 2553, or didn't file Form 2553on time, you may be entitled to relief for alate filed election to be an S corporation.See the Instructions for Form 2553 fordetails.Termination of ElectionOnce the election is made, it stays ineffect until it is terminated. If the election isterminated, the corporation (or asuccessor corporation) can make anotherelection on Form 2553 only with IRSconsent for any tax year before the fifth taxyear after the first tax year in which thetermination took effect. See Regulationssection 1.1362-5 for details.An election terminates automatically inany of the following cases.1. The corporation is no longer a smallbusiness corporation as defined in section1361(b). This kind of termination of anelection is effective as of the day thecorporation no longer meets the definitionof a small business corporation. Attach toForm 1120-S for the final year of the Scorporation a statement notifying the IRSof the termination and the date it occurred.2. The corporation, for each of 3consecutive tax years (a) hasaccumulated earnings and profits, and (b)derives more than 25% of its grossreceipts from passive investment incomeas defined in section 1362(d)(3)(C). Theelection terminates on the first day of thefirst tax year beginning after the third-2-consecutive tax year. The corporationmust pay a tax for each year it has excessnet passive income. See the line 22ainstructions for details on how to figure thetax.3. The election is revoked. An electioncan be revoked only with the consent ofshareholders who, at the time therevocation is made, hold more than 50%of the number of issued and outstandingshares of stock (including nonvotingstock). The revocation can specify aneffective revocation date that is on or afterthe day the revocation is filed. If no date isspecified, the revocation is effective at thestart of the tax year if the revocation ismade on or before the 15th day of the 3rdmonth of that tax year. If no date isspecified and the revocation is made afterthe 15th day of the 3rd month of the taxyear, the revocation is effective at the startof the next tax year.To revoke the election, the corporationmust file a statement with the appropriateservice center listed under Where To Filein the Instructions for Form 2553. In thestatement, the corporation must notify theIRS that it is revoking its election to be anS corporation. The statement must besigned by each shareholder who consentsto the revocation and contain theinformation required by Regulationssection 1.1362-6(a)(3).A revocation can be rescinded before ittakes effect. See Regulations section1.1362-6(a)(4) for details.For rules on allocating income anddeductions between an S corporation'sshort year and a C corporation's short yearand other special rules that apply when anelection is terminated, see section 1362(e)and Regulations section 1.1362-3.If an election was terminated under (1)or (2) above, and the corporation believesthe termination was inadvertent, thecorporation can ask for permission fromthe IRS to continue to be treated as an Scorporation. See Regulations section1.1362-4 for the specific requirements thatmust be met to qualify for inadvertenttermination relief.Electronic FilingCorporations can generally electronicallyfile (e-file) Form 1120-S, related forms,schedules, statements, and attachments;Form 7004 (automatic extension of time tofile); and Forms 940, 941, and 944(employment tax returns). Form 1099 andother information returns can also beelectronically filed. The option to e-filedoesn't, however, apply to certain returns.Certain corporations with total assets of 10 million or more that file at least 250returns a year are required to e-file Form1120-S. See Regulations section301.6037-2. However, these corporationscan ask for a waiver of the electronic filingrequirements. See Notice 2010-13,2010-4 I.R.B. 327.Instructions for Form 1120-S (2019)

Where To FileFile the corporation's return at the applicable IRS address listed below.If the corporation'sprincipal business, office,or agency is located in:Connecticut, Delaware,District of Columbia, Georgia,Illinois, Indiana, Kentucky,Maine, Maryland,Massachusetts, Michigan,New Hampshire, New Jersey,New York, North Carolina,Ohio, Pennsylvania, RhodeIsland, South Carolina,Tennessee, Vermont, Virginia,West Virginia, WisconsinAnd the total assets atthe end of the tax year(Form 1120-S, page 1,item F) are:Less than 10 million andSchedule M-3 isn't filed 10 million or more, orless than 10 million andSchedule M-3 is filedAlabama, Alaska, Arizona,Arkansas, California,Colorado, Florida, Hawaii,Idaho, Iowa, Kansas,Louisiana, Minnesota,Mississippi, Missouri,Montana, Nebraska, Nevada,New Mexico, North Dakota,Oklahoma, Oregon, SouthDakota, Texas, Utah,Washington, WyomingA foreign country or U.S.possessionUse the following address:Department of the TreasuryInternal Revenue Service CenterKansas City, MO 64999-0013Department of the TreasuryInternal Revenue Service CenterOgden, UT 84201-0013corporation must be accompanied by acopy of the order or instructions of thecourt authorizing signing of the return orform.If an employee of the corporationcompletes Form 1120-S, the paid preparerspace should remain blank. Anyone whoprepares Form 1120-S but doesn't chargethe corporation shouldn't complete thatsection. Generally, anyone who is paid toprepare the return must sign it and fill inthe “Paid Preparer Use Only” area.The paid preparer must complete therequired preparer information and: Sign the return in the space providedfor the preparer's signature, and Give a copy of the return to thetaxpayer.A paid preparer may sign originalTIP or amended returns by rubberstamp, mechanical device, orcomputer software program.Department of the TreasuryInternal Revenue Service CenterOgden, UT 84201-0013Any amountInternal Revenue Service CenterP.O. Box 409101Ogden, UT 84409Any amountFor more information, visit IRS.gov/Businesses.When To FileGenerally, an S corporation must file Form1120-S by the 15th day of the 3rd monthafter the end of its tax year. For calendaryear corporations, the due date is March16, 2020 (March 15th falls on Sunday). Acorporation that has dissolved mustgenerally file by the 15th day of the 3rdmonth after the date it dissolved.If the due date falls on a Saturday,Sunday, or legal holiday, the corporationcan file on the next day that isn’t aSaturday, Sunday, or legal holiday.If the S corporation election wasterminated during the tax year and thecorporation reverts to a C corporation, fileForm 1120-S for the S corporation's shortyear by the due date (includingextensions) of the C corporation's shortyear return.Private Delivery ServicesCorporations can use certain privatedelivery services (PDS) designated by theIRS to meet the “timely mailing as timelyfiling” rule for tax returns. Go toIRS.gov/PDS for the current list ofdesignated services.The PDS can tell you how to get writtenproof of the mailing date.Instructions for Form 1120-S (2019)For the IRS mailing address to use ifyou are using PDS, go to IRS.gov/PDSStreetAddresses.Private delivery services can'tdeliver items to P.O. boxes. YouCAUTION must use the U.S. Postal Serviceto mail any item to an IRS P.O. boxaddress.!Extension of Time To FileFile Form 7004, Application for AutomaticExtension of Time To File CertainBusiness Income Tax, Information, andOther Returns, to ask for an extension oftime to file. Generally, the corporationmust file Form 7004 by the regular duedate of the return. See the Instructions forForm 7004.Paid PreparerAuthorizationIf the corporation wants to allow the IRS todiscuss its 2019 tax return with the paidpreparer who signed it, check the “Yes”box in the signature area of the return.This authorization applies only to theindividual whose signature appears in the“Paid Preparer Use Only” section of thereturn. It doesn't apply to the firm, if any,shown in that section.If the “Yes” box is checked, thecorporation is authorizing the IRS to callthe paid preparer to answer any questionsthat may arise during the processing of itsreturn. The corporation is also authorizingthe paid preparer to: Give the IRS any information that ismissing from the return; Call the IRS for information about theprocessing of the return or the status ofany related refund or payment(s); and Respond to certain IRS notices aboutmath errors, offsets, and returnpreparation.The corporation isn't authorizing thepaid preparer to receive any refund check,bind the corporation to anything (includingany additional tax liability), or otherwiserepresent the corporation before the IRS.Who Must SignThe authorization will automatically endno later than the due date (excludingextensions) for filing the corporation's2020 tax return. If the corporation wants toexpand the paid preparer's authorizationor revoke the authorization before it ends,see Pub. 947, Practice Before the IRS andPower of Attorney.If a return is filed on behalf of acorporation by a receiver, trustee, orassignee, the fiduciary must sign thereturn, instead of the corporate officer.Returns and forms signed by a receiver ortrustee in bankruptcy on behalf of aAssembling the ReturnThe return must be signed and dated by: The president, vice president, treasurer,assistant treasurer, chief accountingofficer; or Any other corporate officer (such as taxofficer) authorized to sign.-3-To ensure that the corporation's tax returnis correctly processed, attach allschedules and other forms after page 5 ofForm 1120-S in the following order.

1. Schedule N (Form 1120), ForeignOperations of U.S. Corporations.2. Schedule D (Form 1120-S), CapitalGains and Losses and Built-in Gains.3. Form 8949, Sales and OtherDispositions of Capital Assets.4. Form 8996, Qualified OpportunityFund.5. Form 8825, Rental Real EstateIncome and Expenses of a Partnership oran S Corporation.6. Form 1125-A, Cost of Goods Sold.7. Form 8050, Direct Deposit ofCorporate Tax Refund.8. Form 4136, Credit for Federal TaxPaid on Fuels.9. Form 8941, Credit for SmallEmployer Health Insurance Premiums.10. Form 6252, Installment SaleIncome.11. Additional schedules inalphabetical order.12. Additional forms in numerical order.Complete every applicable entry spaceon Form 1120-S and Schedule K-1. Don'tenter “See Attached” or “Available UponRequest” instead of completing the entryspaces. If more space is needed on theforms or schedules, attach separatesheets using the same size and format asthe printed forms.Services provided by a tax professional,financial institution, payroll service, orother third party may have a fee.To get more information about EFTPSor to enroll in EFTPS, visitwww.EFTPS.gov or call 1-800-555-4477(TTY/TDD 1-800-733-4829).Depositing on time. For any depositmade by EFTPS to be on time, thecorporation must submit the deposit by 8p.m. Eastern time the day before the datethe deposit is due. If the corporation usesa third party to make deposits on itsbehalf, they may have different cutofftimes.Same-day wire payment option. If thecorporation fails to submit a deposittransaction on EFTPS by 8 p.m. Easterntime the day before th

If you didn't receive notification of acceptance or nonacceptance of the election within 2 months of filing Form 2553 (5 months if you checked box Q1 to ask for a letter ruling), take follow-up action by calling 1-800-829-4933. Don't file Form 1120-S for any tax year before the year the election takes effect. Relief for late elections. If you .