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FORM 1120: EVERYTHING YOU NEED TO KNOW

Form 1120

What is Form 1120?

Form 1120 is the corporate income tax return form that US corporations need to file with the Internal Revenue Service (IRS). It is used to report the company’s income, deductions, and tax liability. The due date for filing Form 1120 is typically April 15th, but it can be extended until October 15th by filing Form 7004. Visit our C-Corporation tax deadlines calendar to see the current year deadlines. 

To complete Form 1120, companies will need various documents and financial statements related to their business, including the IRS Employer Identification Number (EIN) letter, basic business information, shareholder SSN/address info, existing tax communications, prior year tax returns, local tax returns (if applicable), financial statements, and a capitalization table.

We strongly recommend keeping track of these materials throughout the year to avoid any last-minute rush! And for newly incorporated startups, the biggest issue we find founders have with gathering materials is the EIN. The EIN is required to complete Form 1120 and is a unique nine-digit number assigned by the IRS to identify a business entity for tax purposes.Look for your EIN confirmation letter: When you initially applied for an EIN, the IRS would have sent you a confirmation letter that includes your EIN. Search for this letter in your records.

Other Types of Form 1120

While the standard 1120 is what most of Kruze’s client use, since they are C-Corps, there are a few other popular versions that may be applicable to your business - this can be confusing, and is why you should work with an experienced CPA to get your business’ taxes done. The most common other version are the 1120-S, for S-Corps, and the 1120-F, for foreign corporations. And if you want to get obscure, try the Form 1120-ND, the return filing for nuclear decommissioning.

What important things should founders know about Form 1120?

Tax season can be a busy time for startup founders, and there are a lot of different forms to complete and regulations to follow. One of the most important is Form 1120, which startups use to report income, deductions, and credits every year. We’ll go into more detail, but first let’s look at the top five things founders need to know about this tax form.

 

  1. Your startup needs Form 1120 for due diligence.
  2. Every company needs to file this form, even if you lost money.
  3. The deadline is April 15 but can be extended to October 15
  4. It’s complex! Get professional help.
  5. You’ll probably also need to file a state return.

Do I need to file a Form 1120 if the business had no income?

Most folks only think about the annual Form 1120 Tax return, but there’s actually a ton of taxes and tax deadlines for Delaware C-Corps.

And Yes, even bootstrapped pre-revenue startups must pay taxes. You might not be subject to Income Taxes (which are based on profitability) but you will still be subject to a wide variety of other taxes which aren’t always connected to Revenue.

To start, here are 4 Startup Tax Calendars, based on metro:

Quick caveat though, these startup tax checklists aren’t complete. There are actually a bunch of taxes out there, some of which may or may not apply to you (depending on your unique circumstances, of course). Here’s a list of just some of the different types of taxes out there that you may need to consider:

  • Income Tax: this type of tax is what most people think of when they hear taxes. It’s taxes based on your Net Income, or profit.
  • Gross Receipts Tax: some cities, like San Francisco, will tax your Gross Revenue.
  • Franchise Tax: this type of tax is imposed on businesses who just…exist. Yes, for the pleasure of existing, you will be asked to pay a tax. There’s often a minimum fee, and most times it has nothing to do with whether you’ve generated income. The most common type of Franchise Tax for venture backed startups is DE Franchise Tax, which runs $400+ every year.
  • Payroll Tax: if you have employees, you have payroll tax. Be sure to use a payroll provider like Gusto to help you pay the right taxes at the right time, and file all the requisite forms (like the 941s).
  • Sales Tax: if you tangible goods (eg clothes, furniture, widgets, stuff you can hold in your hand), you’ll need to register, pay, and file sales tax. Use Avalara, because like payroll tax, it can get super crazy very quickly.
  • SaaS Tax: see more here.
  • Property Tax: if you have significant property holdings, whether that be land, or even just computers/tables/chairs, you might be subject to property taxes. This type of filing is frequently known as a “571-L.”
  • Foreign Tax: if you have a foreign subsidiary or parent company, you might be subject to withholding tax, or FBAR/5471/5472 reporting. Be sure to get this one right; the penalties for getting it wrong can be $10K+.

A very common misconception is that the CPA or firm that filed your annual tax return (the 1120) will have taken care of all these types of taxes: that is never the case!! It is always the CEO’s responsibility to make sure that these taxes are addressed and paid on time. Granted, a CEO can only know so much… and the CPA can only guess as to which types of taxes a company might be subject to. Hence, it’s really important to sit down with a CPA to make sure that all bases are covered based on your company’s unique situation.

How to get the Form 1120

You can find the official Form 1120 on the IRS’ website. Always go directly to the IRS’ site to get the form, as they tend to have minor changes from year to year. You can get the IRS Form 1120 by clicking here to visit the Internal Revenue Service’s page about Form 1120.

When is the 2023 Form 1120 filing date?

For most US corporations, April 15th is the due date for the Form 1120, the corporate income tax return. This can be extended six months.

If a corporation wishes to extend its Form 1120 due date, it can request an extension of time to file. To obtain an extension, the corporation must file Form 7004, “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns,” by the original due date of the return. The extension will generally allow the corporation to file its tax return up to six months after the original due date.

The Internal Revenue Service (IRS) is responsible for enforcing the federal income tax laws and for administering the tax system in the United States. The IRS is a bureau of the U.S. Department of the Treasury and is responsible for collecting taxes, enforcing the tax laws, and providing tax assistance to taxpayers.

When was the 2023 Form 1120 due?

Due to a Federal holiday, the IRS moved the 2023 Form 1120 deadline to April 18th, 2023 and this could have been extended until October 16th, 2023.

Why does the Form 1120 due date change some years?

If the due date for filing a tax return falls on a Saturday, Sunday, or legal holiday, the due date is moved to the next business day. This means that if April 15 falls on a weekend or legal holiday, the due date for filing the tax return would be the next business day. Recently, a combination of Emancipation day, a holiday in Washington DC, where the IRS is headquartered, and the 15th falling on a weekend, have pushed out the Form 1120 due date. 

Where to file Form 1120

Corporations wishing to file the Corporate Income Tax Form 1120 with the IRS by mail must use the correct mailing address for the IRS based on the corporation’s location, and in some instances, the corporation’s total assets at year end. Visit the IRS’ website here to find the correct mailing address. 

What materials do you need to complete a Form 1120?

To file Form 1120, a startup founder will need several documents and financial statements related to their business. Here’s a good starting list of the materials you’ll need to have on hand to complete Form 1120:

  • IRS Employer Identification Number (EIN) letter: This is the letter you received from the IRS when you obtained your EIN. You’ll need to reference this number on your tax return.
  • Basic business information: This includes your company’s legal name, business address, and other contact information.
  • Shareholder SSN/address info: You’ll need to provide the Social Security numbers and addresses of all shareholders who own more than 5% of the company’s stock.
  • Existing tax communications: This includes any tax documents you’ve already received from the IRS or state tax agencies, such as tax payment vouchers or notices.
  • Prior year tax returns: You’ll need copies of your prior year federal and state tax returns, as they contain information that will be used to calculate your current year taxes.
  • Local tax returns: If your business is required to file local tax returns, such as city or county taxes, you’ll need to have copies of those returns as well.
  • Financial statements: This includes a full year balance sheet, profit and loss statement (also known as an income statement), and general ledger. These statements should accurately reflect your company’s financial position for the tax year.
  • Capitalization table: This document lists all the shareholders of your company, along with their ownership percentages and the type of shares they hold (e.g., common, preferred).

Getting these materials together will help you produce your tax return Form 1120 more quickly and efficiently. One good tip is that it makes sense to keep track of these materials as you create them during the year, so that there isn’t a rush in March trying to get everything pulled together!

And, answering a common question we get:

Do I Need my EIN to Complete a Form 1120?

Yes, you need your EIN to complete a Form 1120. An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. It’s quite similar to a social security number for an individual trying to do their taxes. A startup founder will need to provide their EIN when filling out Form 1120, along with other financial and business information such as the date of incorporation, total assets, gross receipts and sales, cost of goods sold (COGS), tax deductions, tax credits, capital gains, dividend, interest, and royalties earned, liabilities, and shareholder equity. The EIN is used by the IRS to track the startup’s tax returns, payments, and other tax-related activities, so make sure you have it on hand when it’s time to do your federal returns. 

Summary

Here is a high-level set of instructions for filling out Form 1120; we strongly recommend working with an experienced tax preparer for your corporate tax returns.

  1. Enter Corporation Information
    • Provide your corporation’s name, address, employer identification number, date incorporated, and total assets.
    • Indicate if this is your first or final return, or if you’ve had a name or address change.
  2. Report Income
    • Enter gross receipts or sales, returns and allowances, cost of goods sold, and gross profit.
    • Include income from dividends, interest, rents, royalties, capital gains, and other sources.
  3. Claim Deductions
    • Deduct allowable expenses such as officer compensation, salaries and wages, repairs and maintenance, bad debts, rent or lease expenses, taxes, interest, charitable contributions, depreciation, advertising, and pension/benefit plan contributions.
    • List any other deductible expenses not reported elsewhere.
  4. Calculate Taxable Income
    • Subtract total deductions from total income to arrive at taxable income before net operating loss deduction and special deductions.
    • Apply any net operating loss carryovers and special deductions.
  5. Compute Tax and Credits
    • Calculate total tax liability using the applicable tax rate and schedules.
    • Report any estimated tax payments and refundable credits.
  6. Determine Amount Owed or Overpaid
    • If total payments and credits exceed total tax liability, indicate the overpayment amount and whether you want it refunded or applied to next year’s estimated tax.
    • If total tax liability exceeds total payments and credits, calculate the amount owed, including any estimated tax penalty.
  7. Sign and Date
    • An authorized corporate officer must sign and date the return.
    • Indicate whether the IRS is allowed to discuss the return with the paid preparer.

Remember to attach all required schedules and forms, such as Schedule C, Schedule D, etc.

Common schedules and forms associated with Form 1120

When filing your corporate tax return, startup founders will typically need to complete several key schedules as part of Form 1120. Here are some of the most common tax forms and schedules that VC-backed startups file in association with their annual corporate tax return:

Schedule K (Other Information)

A required questionnaire about your corporation’s activities and structure that uses a straightforward “Yes/No” format. This schedule helps ensure compliance by gathering critical information about ownership, investments in other companies, and various business activities throughout the tax year. Schedule K must be completed by all C-Corporations, including both domestic and foreign corporations doing business in the United States. Learn about Form 1120 Schedule K - Other Information.

Schedule M-1 (Income Reconciliation)

Explains differences between your company’s book income and taxable income, which is especially important for venture-backed startups that often have significant differences between their GAAP financial statements and tax reporting. This schedule helps the IRS understand how your company arrived at its taxable income by listing all items that create differences between financial accounting and tax treatment. Learn about Form 1120 Schedule M-1 - Reconciliation of Income (Loss).

Schedule M-2 (Retained Earnings Analysis)

Shows changes in your corporation’s retained earnings during the tax year, which is particularly relevant for startups tracking their accumulated losses. This schedule helps shareholders understand important details such as basis calculations, dividend distributions, and previously taxed income, while also serving as a statement of retained earnings for financial reporting purposes. Learn about Form 1120 Schedule M-2 - Analysis of Unappropriated Retained Earnings.

These schedules are crucial components of your corporate tax return. We recommend working with an experienced CPA to ensure they’re completed accurately and consistently with your other financial reporting.

Step-by-step instructions: Form 1120

Filling out IRS Form 1120, the U.S. Corporation Income Tax Return, can be a complex process for startup companies. We strongly recommend that you work with an experienced startup CPA to make sure the form is completed accurately and completely. The form is used by C corporations to report their income, gains, losses, deductions, and credits, and to calculate their income tax liability.

Here are step-by-step Form 1120 instructions to help startup companies complete this tax form:

Step 1: Gather necessary information and documents

Before starting Form 1120, gather the following documents:

Step 2: Download IRS Form 1120

Download Form 1120 from the IRS website to ensure you have the most current version and the Form 1120 instructions. Familiarize yourself with the form’s instructions and any changes or updates relevant to the tax year you’re filing for.

Step 3: Complete the basic information section (Page 1)

Complete the basic information section (Page 1)

  • Name and Address: Enter the corporation’s legal name and address.
  • Employer Identification Number (EIN): Enter the corporation’s EIN.
  • Date of Incorporation and Business Activity Code: Provide the date of incorporation and select the business activity code that best describes the company’s primary business activity.
  • Total Assets: Enter the total assets from the company’s balance sheet as of the end of the tax year. The Total Assets amount should match the end-of-year total on Schedule L.
  • Initial Return, Final Return, Name Change, or Address Change: Check the appropriate box if any of these situations apply to your corporation.

Step 4: Calculate gross income (Lines 1-11)

Calculate gross income (Lines 1-11)

  • Line 1: Enter the corporation’s gross receipts or sales from its operations.
  • Line 2: Subtract any returns and allowances from Line 1 to get net receipts.
  • Line 3: Enter the cost of goods sold (COGS). This is derived from Schedule A (Cost of Goods Sold), which must be completed if applicable.
  • Line 5: Add any other income, such as interest income, dividends, or rental income.
  • Line 10: This is for “other income,” and should include any income not reported on previous lines.
  • Line 11: The total of Lines 3 through 10 will give the corporation’s total gross income.

Step 5: Calculate deductions (Lines 12-29)

Calculate deductions (Lines 12-29)

  • Line 12: Enter the compensation of officers. If more than $500,000 was paid to any one officer, complete Schedule J.
  • Line 13: Enter salaries and wages paid to employees (other than officers).
  • Line 16: Enter any bad debts that have been written off during the year.
  • Line 20: Enter any depreciation and amortization expenses, which are further detailed on Form 4562.
  • Line 26: List all other deductions not specifically itemized on Lines 12-25, including advertising, legal and professional fees, and office expenses. Remember that startup costs and organizational expenses may be deductible and, if so, should be included.
  • Line 27: The total of Lines 12 through 26 will give the corporation’s total deductions.
  • Lines 28 through 29a: Complete the calculations as indicated.

Step 6: Calculate taxable income (Lines 30-37)

Step 6

  • Line 30: Subtract total deductions (Line 29) from total income (Line 11) to calculate the corporation’s taxable income.
  • Line 31: If the corporation has a Net Operating Loss (NOL) carryover from a previous year, enter it here.
  • Line 34: Compute the total tax by applying the corporate tax rate to taxable income. Check if any additional taxes apply, such as for Personal Holding Company Tax or Alternative Minimum Tax (AMT).
  • Line 35: List any tax credits that the corporation is eligible to claim. Attach the relevant forms for any credits.
  • Line 36: Subtract the total credits (Line 35) from the total tax (Line 34) to calculate the tax after credits.
  • Line 37: List any estimated tax payments, extension payments, or overpayments applied from the previous year. This will give the total amount of payments.

Step 7: Calculate amount owed or overpayment (Lines 38-41)

  • Line 38: Subtract the total tax (Line 36) from total payments (Line 37). If the total tax is greater than the payments, the result is the amount owed.
  • Line 40: If payments exceed the total tax, the result is an overpayment. Indicate whether you want the overpayment credited to next year’s estimated tax or refunded.

Step 8: Complete Schedule C (Dividends, Inclusions, a Special Deductions)**

  • If the corporation received dividends from domestic or foreign corporations, complete Schedule C to calculate the Dividends Received Deduction (DRD).

Step 9: Complete Schedule J (Tax Computation and Payments)

  • Schedule J is used to compute the total tax, including any other taxes such as the Alternative Minimum Tax (AMT). It also provides space to list payments and refundable credits.

Step 10: Complete Schedule K (Other Information)

  • Answer the questions regarding the corporation’s accounting method, business activities, ownership, foreign transactions, foreign ownership, etc. These questions help the IRS understand the corporation’s operations and identify any potential red flags. Startups with international connections should pay special attention to this section

.

Step 11: Complete Schedule L (Balance Sheets per Books)

Step 12: Complete Schedule M-1 (Reconciliation of Income)

  • Use Schedule M-1 to reconcile the corporation’s book income (financial statement income) with its taxable income reported on Line 30.

Step 13: Complete Schedule M-2 (Analysis of Unappropriat Retained Earnings per Books)**

  • Schedule M-2 provides a reconciliation of the corporation’s retained earnings at the beginning and end of the tax year.

Step 14: Review and sign Form 1120

Form 1120 - Step 14

  • Review the entire form for accuracy, completeness, and consistency. Make sure all schedules are properly attached.
  • An officer of the corporation must sign and date the form. A paid preparer, if used, must also sign and provide their information.
  • E-signatures are now accepted for e-filed returns.

Step 15: File Form 1120 and pay any taxes due

  • Mail Form 1120 to the IRS or file it electronically using the IRS e-File system or an authorized e-File provider. Be sure to pay any taxes due by the deadline, typically the 15th day of the fourth month following the end of the corporation’s tax year.

Tips for Companies Getting Their Tax Returns Done

Here are some tips for companies trying to prepare their federal tax return:

  • Review Financials: Ensure that all financial records are accurate and up-to-date. Try to answer any open questions and clean up any uncategorized expenses.
  • Know Your Tax Deadlines: Check with your tax preparer regarding which filings they will handle and when they should be submitted.
  • Update Business Information: If your business moved, changed its name or fiscal year, ensure your tax preparer is aware.
  • Consider R&D Tax Credits: If you’re investing in research and development, you could qualify for R&D tax credits. These need to be estimated and supported with proper documentation.
  • Prepare Foreign Subsidiaries’ Financials: If you’ve foreign subsidiaries, their financials need to be ready for reporting on your tax return.
  • NOLs (Net Operating Losses): If your startup is running at a loss, make sure this is properly accounted so it could be applied as a ‘credit’ in profitable future years. Read our article on NOLs to learn more.
  • Explore Other Tax Credits: Depending on the state and industry, you may be eligible for additional tax credits. Consult with a specialist who understands early-stage start-ups to ensure you do not miss any potential savings. Here is our list of the top 20 tax credits for startups in the US.

Remember to work with a trusted tax advisor who specializes in startups to make sure all criteria are met and potential tax incentives aren’t missed.

Form 1120 Department of the Treasury Internal Revenue Service

U.S. Corporation Income Tax Return

For calendar year 2022 or tax year beginning _ _ _ _ _ _ _ _, 2022, ending _ _ _ _ _ _ _ _ , 20_ _

▶ Go to www.irs.gov/Form1120 for instructions and the latest information.

OMB No. 1545-0123

2022

A Check if:

  • 1a Consolidated return (attach Form 851) . . ▢
  •   b Life/nonlife consolidated return . . ▢
  • 2 Personal holding co. (attach Sch. PH) . . ▢
  • 3 Personal service corp. (see instructions) . . ▢
  • 4 Schedule M-3 attached . . ▢

TYPE
OR
PRINT

Name
 
Number, street, and room or suite no. If a P.O. box, see instructions
 
City or town, state or province, country, and ZIP or foreign postal code
 
B Employer identification number
 
C Date incorporated
 
D Total assets (see instructions)
  $                 
E Check if: (1)▢ Initial return (2)▢ Final return (3)▢ Name change (4)▢ Address change
Income
1a
Gross receipts or sales
1a
 
 
b
Returns and allowances
1b
 
 
c
Balance. Subtract line 1b from line 1a
1c
 
2
Cost of goods sold (attach Form 1125-A)
2
 
3
Gross profit. Subtract line 2 from line 1c
3
 
4
Dividends and inclusions (Schedule C, line 23)
4
 
5
Interest
5
 
6
Gross rents
6
 
7
Gross royalties
7
 
8
Capital gain net income (attach Schedule D (Form 1120))
8
 
9
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
9
 
10
Other income (see instructions—attach statement)
10
 
11
Total income. Add lines 3 through 10▶
1
 
Deductions (See instructions for limitations on deductions.)
12
Compensation of officers (see instructions—attach Form 1125-E) ▶
12
 
13
Salaries and wages (less employment credits)
13
 
14
Repairs and maintenance
14
 
15
Bad debts
15
 
16
Rents
16
 
17
Taxes and licenses
17
 
18
Interest (see instructions)
18
 
19
Charitable contributions
19
 
20
Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562)
20
 
21
Depletion
21
 
22
Advertising
22
 
23
Pension, profit-sharing, etc., plans
23
 
24
Employee benefit programs
24
 
25
Reserved for future use
25
 
26
Other deductions (attach statement)
26
 
27
Total deductions. Add lines 12 through 26▶
27
 
28
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
28
 
29a
Net operating loss deduction (see instructions)
29a
 
 
29b
Special deductions (Schedule C, line 24)
29b
 
 
29c
Add lines 29a and 29b
29c
 
Tax, Refundable Credits,
and Payments
30
Taxable income. Subtract line 29c from line 28. See instructions
30
 
31
Total tax (Schedule J, Part I, line 11)
31
 
32
32 2020 net 965 tax liability paid (Schedule J, Part II, line 12)
32
 
33
Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23)
33
 
34
34 Estimated tax penalty. See instructions. Check if Form 2220 is attached▶   ▢
34
 
35
Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed
35
 
36
Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid
36
 
37
Enter amount from line 36 you want: Credited to 2023 estimated tax Refunded ▶      
37
 
Sign
Here
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
 
 
Signature of officer
Date
 
Title
May the IRS discuss this return with the preparer shown below? See instructions.
Yes ▢ No ▢
Paid
Preparer
Use Only
Print/Type preparer’s name
 
Preparer’s signature
 
Date
 
Check if self-employed ▢
 
PTIN
 
Firm’s name ▶
 
Firm’s EIN ▶
 
Firm’s address ▶
 
Phone no.
 
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 11450Q
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.

Form 1120 (2022)
Page 2
Schedule C
Dividends, Inclusions, and Special Deductions (see instructions)
(a) Dividends and inclusions
(b) %
(c) Special deductions (a) × (b)
1
Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock)
 
 
50
 
 
2
Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock)
 
 
65
 
 
3
Dividends on certain debt-financed stock of domestic and foreign corporations
 
 
See instructions
 
 
4
Dividends on certain preferred stock of less-than-20%-owned public utilities
 
 
23.3
 
 
5
Dividends on certain preferred stock of 20%-or-more-owned public utilities.
 
 
26.7
 
 
6
Dividends from less-than-20%-owned foreign corporations and certain FSCs
 
 
50
 
 
7
Dividends from 20%-or-more-owned foreign corporations and certain FSCs
 
 
65
 
 
8
Dividends from wholly owned foreign subsidiaries
 
 
100
 
 
9
Subtotal. Add lines 1 through 8. See instructions for limitations
 
 
See instructions
 
 
10
Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958
 
 
100
 
 
11
Dividends from affiliated group members
 
 
100
 
 
12
Dividends from certain FSCs
 
 
100
 
 
13
Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions)
 
 
100
 
 
14
Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) .
 
 
 
 
15
Section 965(a) inclusion
 
 
See instructions
 
 
16a
Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions)
 
 
100
 
 
b
Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions)
 
 
 
 
c
Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions)
 
 
 
 
17
Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992)
 
 
 
 
18
Gross-up for foreign taxes deemed paid .
 
 
 
 
19
IC-DISC and former DISC dividends not included on line 1, 2, or 3
 
 
 
 
20
Other dividends
 
 
 
 
21
Deduction for dividends paid on certain preferred stock of public utilities . .
 
 
 
 
22
Section 250 deduction (attach Form 8993)
 
 
 
 
23
Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4
 
 
 
 
24
Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 29b
 
 
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.

Form 1120 (2022)
Page 3
Schedule J
Tax Computation and Payment (see instructions)
Part I—Tax Computation
1
Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions ▶   ▢
 
2
Income tax. See instructions
2
 
3
Base erosion minimum tax amount (attach Form 8991)
3
 
4
Add lines 2 and 3
4
 
5a
Foreign tax credit (attach Form 1118)
5a
 
 
b
FCredit from Form 8834 (see instructions)
5b
 
 
c
General business credit (attach Form 3800)
5c
 
 
d
Credit for prior year minimum tax (attach Form 8827)
5d
 
 
e
Bond credits from Form 8912
5e
 
 
6
Total credits. Add lines 5a through 5e
6
 
7
Subtract line 6 from line 4
7
 
8
Personal holding company tax (attach Schedule PH (Form 1120))
8
 
9a
Recapture of investment credit (attach Form 4255)
9a
 
 
b
Recapture of low-income housing credit (attach Form 8611)
9b
 
 
c
Interest due under the look-back method—completed long-term contracts (attach Form 8697)
9c
 
 
d
Interest due under the look-back method—income forecast method (attach Form 8866)
9d
 
 
e
Alternative tax on qualifying shipping activities (attach Form 8902)
9e
 
 
f
Interest/tax due under Section 453A(c) and/or Section 453(l)
9f
 
 
g
Other (see instructions—attach statement)
9g
 
 
10
Total. Add lines 9a through 9g
10
 
11
Total tax. . Add lines 7, 8, and 10. Enter here and on page 1, line 31
11
 
Part II—Section 965 Payments (see instructions)
12
2020 net 965 tax liability paid from Form 965-B, Part II, column (k), line 4. Enter here and on page 1, line 32
12
 
Part III—Payments, Refundable Credits, and Section 965 Net Tax Liability
13
2019 overpayment credited to 2020
13
 
14
2020 estimated tax payments
14
 
15
2020 refund applied for on Form 4466
15
 
16
Combine lines 13, 14, and 15
16
 
17
Tax deposited with Form 7004
17
 
18
Withholding (see instructions)
18
 
19
Total payments. Add lines 16, 17, and 18
19
 
20
Refundable credits from:
 
 
a
Form 2439
20a
 
 
b
Form 4136
20b
 
 
c
Reserved for future use
20c
 
 
d
Other (attach statement—see instructions)
20d
 
 
21
Total credits.Add lines 20a through 20d .
21
 
21
Total credits.Add lines 20a through 20d .
21
 
22
2020 net 965 tax liability from Form 965-B, Part I, column (d), line 4. See instructions
22
 
23
Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33
23
 
 
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.

Form 1120 (2022)
Page 4
Schedule K
Other Information (see instructions)
1
Check accounting method: a ▢   Cash  b   ▢   Accural c   ▢   Other (specify)
▶  
Yes
No
2
See the instructions and enter the:
 
 
a
Business activity code no. ▶
 
 
b
Business activity ▶
 
 
c
Product or service ▶
 
 
3
Is the corporation a subsidiary in an affiliated group or a parent–subsidiary controlled group?
 
 
 
If “Yes,” enter name and EIN of the parent corporation ▶
 
 
4
At the end of the tax year:
 
 
a
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G) .
 
 
 
 
b
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G) .
 
 
 
 
5
At the end of the tax year, did the corporation:
 
 
a
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below.
 
 
 
 
(i) Name of Corporation
(ii) Employer Identification Number (if any)
(iii) Country of Incorporation
(iv) Percentage Owned in Voting Stock
 

 

 

 

 

 

 

 

 

 

 

 

b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below.
 
 
 
 
(i) Name of Entity
(ii) Employer Identification Number (if any)
(iii) Country of Organization
(iv) Maximum Percentage Owned in Profit, Loss, or Capital
 

 

 

 

 

 

 

 

 

 

 

 

6
During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation’s current and accumulated earnings and profits? See sections 301 and 316
 
 
 
 
If “Yes,” file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452.
 
 
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
 
 
7
At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation’s stock entitled to vote or at least 25% of the total value of all classes of the corporation’s stock?
 
 
 
 
For rules of attribution, see section 318. If “Yes,” enter:
 
 
(a) Percentage owned ▶  _ _ _ _ _ _ _ and (b) Owner’s country ▶  _ _ _ _ _ _ _ _ _ _ _
 
 
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
 
 
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached ▶  _ _ _ _ _ _ _ _ _ _ _
 
 
8
Check this box if the corporation issued publicly offered debt instruments with original issue discount ▶
 
 
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments
 
 
9
Enter the amount of tax-exempt interest received or accrued during the tax year ▶ $
 
 
10
Enter the number of shareholders at the end of the tax year (if 100 or fewer) ▶
 
 
11
If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) ▶
 
 
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid.
 
 
 
 
12
Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.)
 
 
 
 
 
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.

Form 1120 (2022)
Page 5
Schedule K
Other Information (continued from page 4)
13
3 Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000?
Yes
No
If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year ▶ $
 
 
 
 
14
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions . . . . If “Yes,” complete and attach Schedule UTP.
 
 
 
 
15a
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions . . . . If “Yes,” complete and attach Schedule UTP.
 
 
b
If “Yes,” did or will the corporation file required Form(s) 1099?
 
 
16
During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock?
 
 
17
During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction?
 
 
18
Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million?
 
 
19
During the corporation’s tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code?
 
 
20
Is the corporation operating on a cooperative basis?.
 
 
21
During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions
 
 
If “Yes,” enter the total amount of the disallowed deductions ▶ $
 
 
22
Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3))
 
 
If “Yes,” complete and attach Form 8991.
 
 
23
Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions
 
 
24
Does the corporation satisfy one or more of the following? See instructions
 
 
a
The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense.
 
 
b
The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expense
 
 
c
The corporation is a tax shelter and the corporation has business interest expense.
 
 
If “Yes,” complete and attach Form 8990.
 
 
25
Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?
 
 
If “Yes,” enter amount from Form 8996, line 15
 
 
26
Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties held directly or indirectly by the corporation, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the shareholders held more than 50% of the stock of the foreign corporation)? If “Yes,” list the ownership percentage by vote and by value. See instructions
 
 
Percentage: By Vote  _ _ _ _ _ _ _ _ _ _ By Vote  _ _ _ _ _ _ _ _ _ _
 
 
 
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.

Form 1120 (2022)
Page 6
Schedule L
Balance Sheets per Books
Beginning of tax year
End of tax year
Assets
(a)
(b)
(c)
(d)
1
Cash
 
 
 
 
2a
Trade notes and accounts receivable
 
 
 
 
b
Less allowance for bad debts
 
 
 
 
3
Inventories
 
 
 
 
4
U.S. government obligations
 
 
 
 
5
Tax-exempt securities (see instructions)
 
 
 
 
6
Other current assets (attach statement)
 
 
 
 
7
Loans to shareholders
 
 
 
 
8
Mortgage and real estate loans
 
 
 
 
9
Other investments (attach statement)
 
 
 
 
10a
Buildings and other depreciable assets
 
 
 
 
b
Less accumulated depreciation
 
 
 
 
11a
Depletable assets
 
 
 
 
b
Less accumulated depletion
 
 
 
 
12
Land (net of any amortization)
 
 
 
 
13a
Intangible assets (amortizable only)
 
 
 
 
b
Less accumulated amortization
 
 
 
 
14
Other assets (attach statement)
 
 
 
 
15
Total assets
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
16
Accounts payable
 
 
 
 
17
Mortgages, notes, bonds payable in less than 1 year
 
 
 
 
18
Other current liabilities (attach statement)
 
 
 
 
19
Loans from shareholders
 
 
 
 
20
Mortgages, notes, bonds payable in 1 year or more
 
 
 
 
21
Other liabilities (attach statement)
 
 
 
 
22
Capital stock: a Preferred stock
 
 
 
 
b Common stock
 
 
 
 
23
Additional paid-in capital
 
 
 
 
24
Retained earnings—Appropriated (attach statement)
 
 
 
 
25
Retained earnings—Unappropriated
 
 
 
 
26
Adjustments to shareholders’ equity (attach statement)
 
 
 
 
27
Less cost of treasury stock
 
 
 
 
28
Total liabilities and shareholders’ equity
 
 
 
 
Schedule M-1
Reconciliation of Income (Loss) per Books With Income per Return
Note: The corporation may be required to file Schedule M-3. See instructions.
1
Net income (loss) per books
 
2
Federal income tax per books
 
3
Excess of capital losses over capital gains
 
4
Income subject to tax not recorded on books this year (itemize)
 
5
Expenses recorded on books this year not deducted on this return (itemize):
 
a
Depreciation
 
b
Charitable contributions . $
 
c
Travel and entertainment
 
6
Add lines 1 through 5
 
7
Income recorded on books this year not included on this return (itemize):
 
8
Tax-exempt interest $
 
8
Deductions on this return not charged against book income this year (itemize):
 
a
Depreciation
 
b
Charitable contributions . $
 
b
Charitable contributions . $
 
9
9 Add lines 7 and 8
 
10
Income (page 1, line 28)—line 6 less line 9
 
Schedule M-2
Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)
1
Balance at beginning of year
 
2
Net income (loss) per books
 
3
Other increases (itemize):
 
 
 
 
 
4
Add lines 1, 2, and 3
 
5
Distributions: a Cash .
 
b Stock
 
c Property
 
6
Other decreases (itemize):
 
7
Add lines 5 and 6
 
8
Balance at end of year (line 4 less line 7)
 
 
Form 1120 (2022)

Warning: This information is for informational purposes only and should not be used for official tax matters. Use the official Form 1120 and instructions, generally found at: https://www.irs.gov/forms-instructions. Rely on this information at your own risk. Visit https://www.irs.gov/forms-instructions for official IRS information. Consult with a tax professional.