IRS Form 1120 A
When a corporation is small, it may be able to use the IRS form 1120 A rather than the full IRS form 1120. Below are criteria that a corporation must satisfy to be able to use the short IRS form 1120 A which is a lot easier to fill out than the full IRS form 1120. Most small businesses meet the criteria for filing the IRS form 1120 A so they don't have to mess with how to fill out the full IRS form 1120.
A corporation may file the IRS form 1120 A if it meets all of the following requirements.
Gross receipts or sales are under $500,000.
Total income (gross profit plus other income including gains on sales or property) is under $500,000.
Total assets are under $500,000
The corporation is not a member of a controlled group
The corporation does not file a consolidated tax return
The corporation does not have ownership in a foreign corporation.
The corporation does not have foreign shareholders who directly or indirectly own 25% or more of its stock.
Filing IRS form 1120S
If the small business is an S corporation then the small business must file the IRS form 1120S instead of Form 1120 or 1120A.
When is the IRS tax for 1120 A due?
The small business must file the IRS tax form 1120 A on or before the fifteenth day of the third month following the close of a corporation's tax year.
Corporation tax filing extension
The small business corporation can have an automatic tax filing extension for 6 months if the small business files the tax form 7004 by the due date of the tax return.