Form 1120S

AAA

DEFINITION of 'Form 1120S'

A tax document used to report the income, losses and dividends of S corporation shareholders; it is an S corporation's tax return. Form 1120S is part of the Schedule K-1 document. It is prepared for each individual shareholder and identifies the percentage of company shares owned by the individual for the tax year.


For a partnership, Form 1065 is submitted instead of Form 1120S.

INVESTOPEDIA EXPLAINS 'Form 1120S'

The IRS uses the ownership percentage to allocate how much profit and loss should be assigned to an individual shareholder. This is easily calculated if the shareholder doesn't see a change in the percentage during the year, but if shares are bought, sold or transfered during the course of the year then profit and loss has to be pro-rated on a per-share basis.




RELATED TERMS
  1. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Schedule K-1

    A tax document used to report the incomes, losses and dividends ...
  3. Partnership

    A business organization in which two or more individuals manage ...
  4. Subchapter S (S Corporation)

    A form of corporation that meets the IRS requirements to be taxed ...
  5. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
  6. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
Related Articles
  1. How To Appeal Your IRS Audit
    Taxes

    How To Appeal Your IRS Audit

  2. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  3. Don't Let Inaccurate Tax Forms Get You ...
    Taxes

    Don't Let Inaccurate Tax Forms Get You ...

  4. Cut Employee Stock Option Taxes With ...
    Taxes

    Cut Employee Stock Option Taxes With ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center