U.S. Corporation Income Tax Return U.S. Corporation Short-Form Income Tax Return
Changes To Note
- For tax years ending on or after December 31, 2001, certain corporations with average annual gross receipts of more than $1 million but less
than or equal to $10 million may be able to adopt or change to the cash method of accounting for eligible trades or businesses. This rule does not
apply to corporations prohibited from using the cash method under section 448. For more details, including change in accounting method requirements,
see Notice 2001-76, 2001-52 I.R.B. 614.
- The corporation may need to mail its return to a different service center this year because the IRS has changed the filing location for
several areas. If an envelope was received with the tax package, please use it. Otherwise, see Where To File on page 3.
- A corporation may request that the IRS deposit its income tax refund directly into its checking or savings account at any U.S. bank or other
financial institution that accepts direct deposits. For details, see the instructions for line 36 on page 14, and new Form 8050, Direct
Deposit of Corporate Tax Refund.
- If the corporation wants to allow the IRS to discuss its 2001 tax return with the paid preparer who signed it, check the Yes box in
the area where the officer of the corporation signed the return. See page 3 for details.
Photographs of Missing Children
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children
selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the
photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Unresolved Tax Issues
If the corporation has attempted to deal with an IRS problem unsuccessfully, it should contact the Taxpayer Advocate. The Taxpayer Advocate
independently represents the corporation's interests and concerns within the IRS by protecting its rights and resolving problems that have not been
fixed through normal channels.
While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous
contacts and ensure that the corporation's case is given a complete and impartial review.
The corporation's assigned personal advocate will listen to its point of view and will work with the corporation to address its concerns. The
corporation can expect the advocate to provide:
- A "fresh look" at a new or on-going problem.
- Timely acknowledgment.
- The name and phone number of the individual assigned to its case.
- Updates on progress.
- Timeframes for action.
- Speedy resolution.
- Courteous service.
When contacting the Taxpayer Advocate, the corporation should provide the following information:
- The corporation's name, address, and employer identification number (EIN).
- The name and telephone number of an authorized contact person and the hours he or she can be reached.
- The type of tax return and year(s) involved.
- A detailed description of the problem.
- Previous attempts to solve the problem and the office that had been contacted.
- A description of the hardship the corporation is facing (if applicable).
The corporation may contact a Taxpayer Advocate by calling 1-877-777-4778 (toll free). Persons who have access to TTY/TDD equipment may
call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If the corporation prefers, it may call, write, or fax the Taxpayer Advocate office in
its area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.
How To Make a Contribution To Reduce the Public Debt
To help reduce the public debt, make a check payable to the: Bureau of the Public Debt. Send it to Bureau of the Public Debt, Department G,
P.O. Box 2188, Parkersburg, WV 26106-2188. Or, enclose a check with the income tax return. Contributions to reduce the public debt are deductible
subject to the rules and limitations for charitable contributions.
How To Get Forms and Publications
You can access the IRS web site 24 hours a day, 7 days a week at www.irs.gov to:
- Download forms, instructions, and publications.
- See answers to frequently asked tax questions.
- Search publications on-line by topic or keyword.
- Send us comments or request help by e-mail.
- Sign up to receive local and national tax news by e-mail.
You can also reach us using file transfer protocol at ftp.irs.gov.
Order Pub. 1796, Federal Tax Products on CD-ROM, and get:
- Current year forms, instructions, and publications.
- Prior year forms, instructions, and publications.
- Frequently requested tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
- The Internal Revenue Bulletin.
Buy the CD-ROM on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) for $21 (no handling fee),
or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the CD-ROM for $21 (plus a $5 handling fee).
By phone and in person.
You can order forms and publications 24 hours a day, 7 days a week, by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most
forms and publications at your local IRS office.
Purpose of Form
Use Form 1120, U.S. Corporation Income Tax Return, or Form 1120-A, U.S. Corporation Short-Form Income Tax Return, to report
the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation. Also see Pub. 542, Corporations,
for more information.
Who Must File
Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file whether or not they have taxable
income. Domestic corporations must file Form 1120 or, if they qualify, Form 1120-A, unless they are required to file a special return (see
Special Returns for Certain Organizations below).
Limited liability companies.
If an entity was formed as a limited liability company under state law and is treated as a partnership for Federal income tax purposes, it should
not file Form 1120 or 1120-A. Instead, file Form 1065, U.S. Return of Partnership Income. For the definition of a limited liability
company, see the Instructions for Form 1065.
Corporations engaged in farming.
Any corporation that engages in farming should use Form 1120 or, if they qualify, Form 1120-A to report the income (loss) from such activities.
Enter the income and deductions of the corporation in accordance with the instructions for lines 1 through 10 and 12 through 29.
Who May File Form 1120-A
Form 1120-A may be filed by a corporation if it met all of the following requirements during the tax year:
- Its gross receipts (line 1a on page 1) are under $500,000.
- Its total income (line 11 on page 1) is under $500,000.
- Its total assets (Form 1120, Schedule L, line 15) are under $500,000.
- Its only dividend income is from domestic corporations and those dividends (a) qualify for the 70% dividends-received deduction
and (b) are not from debt-financed securities.
- It does not have any of the write-in additions to tax listed on pages 17 and 19 in the Instructions for Form 1120, Schedule J, line 3
or line 11.
- It has no nonrefundable tax credits (other than the general business credit or the credit for prior year minimum tax).
- It is not: (a) a member of a controlled group, (b) a personal holding company, (c) filing a consolidated
return, (d) filing its final return, (e) dissolving or liquidating, (f) electing to forego the carryback period of an
NOL, or (g) required to file one of the returns listed under Special Returns for Certain Organizations below.
- It does not have: (a) any ownership in a foreign corporation or foreign partnership, (b) foreign shareholders that
directly or indirectly own 25% or more of its stock, or (c) any ownership in, or transactions with, a foreign trust.
Special Returns for
Instead of filing Form 1120 or Form 1120-A, certain organizations, as shown below, have to file special returns.
|If the organization is a
|Farmers' cooperative (sec. 1381)
|Exempt organization with unrelated trade or business income
|Religious or apostolic organization exempt under section 501(d)
|Entity formed as a limited liability company under state law and treated as a partnership for Federal income tax purposes
|Entity that elects to be treated as a real estate mortgage investment conduit (REMIC) under sec. 860D
|Interest charge domestic international sales corporation (section 992)
|Foreign corporation (other than life and property and casualty insurance company filing Form 1120-L or Form 1120-PC)
|Foreign sales corporation (sec. 922)
|Condominium management association or residential real estate management association that elects to be treated as a homeowners association under section 528
|Life insurance company (sec. 801)
|Fund set up to pay for nuclear decommissioning costs (sec. 468A)
|Property and casualty insurance company (section 831)
|Political organization (section 527)
|Real estate investment trust (section 856)
|Regulated investment company (section 851)
|S corporation (section 1361)
|Settlement fund (section 468B)
Ownership Interest in a FASIT
If a corporation holds an ownership interest in a financial asset securitization investment trust (FASIT), it must report all items of
income, gain, deductions, losses, and credits on the corporation's income tax return (except as provided in section 860H). Show a breakdown of the
items on an attached schedule. For more information, see sections 860H and 860L.
When To File
Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of the tax year. A new corporation filing a
short-period return must generally file by the 15th day of the 3rd month after the short period ends. A corporation that has dissolved must generally
file by the 15th day of the 3rd month after the date it dissolved.
If the due date falls on a Saturday, Sunday, or legal holiday, the corporation may file on the next business day.
Private delivery services.
Corporations can use certain private delivery services designated by the IRS to meet the timely
mailing as timely filing/paying rule for tax returns and payments. The most recent list of designated private delivery services was published by
the IRS in October 2001.
The list includes only the following:
- Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, Second Day Service.
- DHL Worldwide Express (DHL): DHL Same Day Service, DHL USA Overnight.
- Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day.
- United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus,
and UPS Worldwide Express.
The private delivery service can tell you how to get written proof of the mailing date.
File Form 7004, Application for Automatic Extension of Time To File Corporation Income Tax Return, to request a 6-month extension of
time to file.
Who Must Sign
The return must be signed and dated by:
- The president, vice president, treasurer, assistant treasurer, chief accounting officer or
- Any other corporate officer (such as tax officer) authorized to sign.
Receivers, trustees, or assignees must also sign and date any return filed on behalf of a corporation.
If an employee of the corporation completes Form 1120 or Form 1120-A, the paid preparer's space should remain blank. In addition, anyone who
prepares Form 1120 or Form 1120-A but does not charge the corporation should not complete that section. Generally, anyone who is paid to prepare the
return must sign it and fill in the Paid Preparer's Use Only area.
The paid preparer must complete the required preparer information and -
- Sign the return, by hand, in the space provided for the preparer's signature (signature stamps and labels are not acceptable).
- Give a copy of the return to the taxpayer.
Paid Preparer Authorization
If the corporation wants to allow the IRS to discuss its 2001 tax return with the paid preparer who signed it, check the Yes box in the
signature area of the return. This authorization applies only to the individual whose signature appears in the Paid Preparer's Use Only section
of the corporation's return. It does not apply to the firm, if any, shown in that section.
If the Yes box is checked, the corporation is authorizing the IRS to call the paid preparer to answer any questions that may arise during
the processing of its return. The corporation is also authorizing the paid preparer to:
- Give the IRS any information that is missing from the return,
- Call the IRS for information about the processing of the return or the status of any related refund or payment(s), and
- Respond to certain IRS notices that the corporation has shared with the preparer about math errors, offsets, and return preparation. The
notices will not be sent to the preparer.
The corporation is not authorizing the paid preparer to receive any refund check, bind the corporation to anything (including any additional tax
liability), or otherwise represent the corporation before the IRS. If the corporation wants to expand the paid preparer's authorization, see Pub.
947, Practice Before the IRS and Power of Attorney.
The authorization cannot be revoked. However, the authorization will automatically end no later than the due date (excluding extensions) for filing
the corporation's 2002 tax return.
Where To File
File the corporation's return at the applicable IRS address listed below.
|If the corporation's principal business, office, or agency is located in:
||And the total assets at the end of the tax year (Form 1120, page 1, item D) are:
||Use the following Internal Revenue Service Center address:
|Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, Wisconsin
||Less than $10 million $10 million or more
||Cincinnati, OH 45999-0012 Ogden, UT 84201-0012
|Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wyoming
||Ogden, UT 84201-0012
|A foreign country or U.S. possession (or the corporation is claiming the possessions corporation tax credit under sections 30A and 936)
||Philadelphia, PA 19255-0012
A group of corporations with members located in more than one service center area will often keep all the books and records at the principal office
of the managing corporation. In this case, the tax returns of the corporations may be filed with the service center for the area in which the
principal office of the managing corporation is located.
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