Instructions for Form 1120S - Introductory Material

Future Developments

For the latest information about developments related to Form 1120S and its instructions, such as legislation enacted after they were published, go to

What's New

Form 1125-E, Compensation of Officers.   For tax years beginning after 2012, use Form 1125-E if the S corporation deducts an expense for compensation for officers and has total receipts of $500,000 or more. See the instructions for lines 7 and 8.

New Schedule B-1 (Form 1120S), Information on Certain Shareholders of an S Corporation.   S Corporations that check the "Yes" box for question 3 of Form 1120S, Schedule B, will need to complete new Schedule B-1 (Form 1120S). See Schedule B-1 (Form 1120S) for details.

Schedule K-1 (Form 1120S).   New code U has been added to box 17 of Schedule K-1. Code U is used to report information related to the net investment income tax. Former code U (Other information) is now code V.

Regulations section 1.1411-10(g) election.   The corporation can elect to include section 951 inclusions and section 1293 inclusions in net investment income for purposes of section 1411 in the same tax year as the amounts are included in income for chapter 1 purposes. See Regulations section 1.1411-10(g) (section 1411 election with respect to CFCs and QEFs) under Other Forms and Statements That May Be Required for more information.

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 these 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

The Taxpayer Advocate Service (TAS) is your voice at the IRS. Its job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven't been able to solve on your own. Remember, the worst thing you can do is nothing at all.

As a taxpayer, the corporation has rights that the IRS must abide by in its dealings with the corporation. The TAS tax toolkit at can help the corporation understand these rights.

The corporation can contact the TAS as follows.

  • Call the corporation's local advocate, whose number is listed in the local phone book and on our website at

  • Call the toll-free intake line at 1-877-777-4778 to see if the corporation is eligible for assistance. Individuals who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. These individuals can also access the IRS through relay services such as the Federal Relay Service at

TAS also handles large-scale or systemic problems that affect many taxpayers. If the corporation knows of one of these broad issues, please report it to us through the Systemic Advocacy Management System at

For more information, go to

Direct Deposit of Refund

To request a direct deposit of the corporation's income tax refund into an account at a U.S. bank or other financial institution, attach Form 8050, Direct Deposit of Corporate Tax Refund. See the instructions for line 27.

How To Get Forms and Publications

Internet.   You can access the IRS website 24 hours a day, 7 days a week, at to:
  • Download forms, including talking tax forms, instructions, and publications;

  • Order IRS products online;

  • Research your tax questions online;

  • Search publications online by topic or keyword;

  • Use the online Internal Revenue Code, regulations, or other official guidance;

  • View Internal Revenue Bulletins (IRBs) published in recent years; and

  • Sign up to receive local and national tax news by email.

By phone and in person.   You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office.

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