What is the Form 1120-S?
The Form 1120-S is a U.S. tax form used by S corporations to report income, deductions, and other financial details to the Internal Revenue Service (IRS). This form is a corporate tax return that passes income, losses, deductions, and credits to the shareholders for reporting on their individual tax returns. Form 1120-S is specifically designed for S corporations, which are entities that elect to pass corporate income through to shareholders for federal tax purposes, thereby avoiding double taxation.