- Publication 542 - Introductory Material
- Publication 542 - Main Content
- Businesses Taxed as Corporations
- Property Exchanged for Stock
- Control of a corporation.
- Services rendered.
- Property of relatively small value.
- Stock received in disproportion to property transferred.
- Money or other property received.
- Nonqualified preferred stock.
- Loss on exchange.
- Basis of stock or other property received.
- Basis of property transferred.
- Capital Contributions
- Filing and Paying Income Taxes
- Income Tax Return
- Estimated Tax
- U.S. Real Property Interest
- Accounting Methods
- Accounting Periods
- Income, Deductions, and Special Provisions
- Costs of Going Into Business
- Related Persons
- Corporate Preference Items
- Dividends-Received Deduction
- Dividends from foreign corporations.
- Dividends from domestic corporations.
- Small business investment companies.
- Dividends from regulated investment companies.
- No deduction allowed for certain dividends.
- Dividends on deposits.
- Limit on deduction for dividends.
- Figuring the limit.
- Effect of net operating loss.
- Extraordinary Dividends
- Below-Market Loans
- Charitable Contributions
- Cash method corporation.
- Accrual method corporation.
- Limitations on deduction.
- Farmers, ranchers, or Native Corporations.
- Carryover of excess contributions.
- Cash contributions.
- Gifts of $250 or more.
- Contributions of property other than cash.
- Qualified conservation contributions.
- Contributions of used vehicles.
- Reduction for contributions of certain property.
- Larger deduction.
- Contributions to organizations conducting lobbying activities.
- More information.
- Capital Losses
- Net Operating Losses
- At-Risk Limits
- Passive Activity Limits
- Figuring Tax
- Accumulated Earnings Tax
- Distributions to Shareholders
- Money or Property Distributions
- Distributions of Stock or Stock Rights
- Constructive Distributions
- Reporting Dividends and Other Distributions
- How To Get Tax Help
- Tax reform.
- Getting tax forms and publications.
- Resolving tax-related identity theft issues.
- Contacting your local IRS office.
- Watching IRS videos.
- Getting tax information in other languages.
- The Taxpayer Advocate Service (TAS) Is Here To Help You
- Publication 542 - Additional Material
For the latest information about developments related to Pub. 542, such as legislation enacted after it was published, go to IRS.gov/Pub542. For changes that may affect the current tax year, see the Instructions for Form 1120 or the applicable instructions for the corporation’s tax return.
Changes in corporate tax law. The Tax Cuts and Jobs Act (P.L. 115-97) made major changes to the taxation of corporate taxpayers, including, but not limited to, replacing the graduated corporate tax structure with a flat 21% corporate tax rate and the repeal of the corporate alternative minimum tax (AMT), effective for tax years beginning after 2017. Many of the changes are discussed in Pub. 542. Also see the 2017 and 2018 Instructions for Form 1120 for details.
The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). 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.
This publication discusses the general tax laws that apply to ordinary domestic corporations. It explains the tax law in plain language so it will be easier to understand. However, the information given does not cover every situation and is not intended to replace the law or change its meaning.
510 Excise Taxes (Including Fuel Tax Credits and Refunds)
535 Business Expenses
538 Accounting Periods and Methods
544 Sales and Other Dispositions of Assets
550 Investment Income and Expenses
925 Passive Activity and At-Risk Rules
946 How to Depreciate Property
The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996.
If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. This rule applies both to individuals and to groups who transfer property to a corporation. It also applies whether the corporation is being formed or is already operating. It does not apply in the following situations.
The corporation is an investment company.
You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors.
The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt.
Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. For more information, see Regulations section 1.351-3.
The basis of any other property you receive is its fair market value on the date of the trade.
This section explains the tax treatment of contributions from shareholders and nonshareholders.
The federal income tax is a pay-as-you-go tax. A corporation generally must make estimated tax payments as it earns or receives income during its tax year. After the end of the year, the corporation must file an income tax return. This section will help you determine when and how to pay and file corporate income taxes.
For certain corporations affected by federally declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. The IRS also may forgive the interest and penalties on any underpaid tax for the length of any extension. For more information, visit IRS.gov/DisasterTaxRelief.
This section will help you determine when and how to report a corporation's income tax.
Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. Do not attach an explanation when the corporation's return is filed. See the instructions for your income tax return.
Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. This section will explain how to avoid this penalty.
File Form 4466 after the end of the corporation’s tax year, but before the corporation files its income tax return. Do not file Form 4466 before the end of the corporation's tax year. An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. The IRS will act on the form within 45 days from the date you file it.
If a domestic corporation acquires a U.S. real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. The amount paid includes cash, the fair market value of other property, and any assumed liability. If a domestic corporation distributes a U.S. real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. A corporation that fails to withhold may be liable for the tax and any penalties and interest that apply. For more information, see section 1445 of the Internal Revenue Code; Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests.
An accounting method is a set of rules used to determine when and how income and expenses are reported. Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. In all cases, the method used must clearly show taxable income.
Generally, permissible methods include:
Any other method authorized by the Internal Revenue Code.
A corporation must figure its taxable income on the basis of a tax year. A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. Generally, a corporation can use either a calendar year or a fiscal year as its tax year. Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. For more information, see Pub. 538.
A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property.
The corporation should keep copies of all filed returns. They help in preparing future and amended returns and in the calculation of earnings and profits.
Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. However, the following special provisions apply only to corporations.
When you go into business, treat all eligible costs you incur to get your business started as capital expenses. However, a corporation can elect to deduct a limited amount of start-up or organizational costs. Any costs not deducted can be amortized.
Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. Organizational costs are the direct costs of creating the corporation.
For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. Also see Pub. 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization.
A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. Determine the relationship as of the end of the tax year for which the expense or interest would otherwise be deductible. If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. These rules also deny the deduction of losses on the sale or exchange of property between related persons.
A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. These items are known as corporate preference items and they include the following.
Gain on the disposition of section 1250 property. For more information, see Section 1250 Property under Depreciation Recapture in chapter 3 of Pub. 544.
Percentage depletion for iron ore and coal (including lignite). For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Pub. 535.
Amortization of pollution control facilities. For more information, see Pollution Control Facilities in chapter 8 of Pub. 535 and section 291(a)(5) of the Internal Revenue Code.
Mineral exploration and development costs. For more information, see Exploration Costs and Development Costs in chapter 7 of Pub. 535.
For more information on corporate preference items, see section 291 of the Internal Revenue Code.
A corporation can deduct a percentage of certain dividends received during its tax year. This section discusses the general rules that apply. The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return.
If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. The nontaxed part is any dividends-received deduction allowable for the dividends.
If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest.
A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following.
A loan in exchange for a note that requires payment of interest at the applicable federal rate.
An additional payment in an amount equal to the forgone interest.
Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction.
See Below-market loans in chapter 4 of Pub. 535 for more information.
A corporation can claim a limited deduction for charitable contributions made in cash or other property. The contribution is deductible if made to, or for the use of, a qualified organization. For more information on qualified organizations, see Pub. 526, Charitable Contributions. Also see Tax Exempt Organization Search at IRS.gov/Charities, the online search tool for finding information on organizations eligible to receive tax-deductible contributions.
A corporation can deduct capital losses only up to the amount of its capital gains. In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years.
A capital loss is carried to other years in the following order.
3 years prior to the loss year.
2 years prior to the loss year.
1 year prior to the loss year.
Any loss remaining is carried forward for 5 years.
When you carry a net capital loss to another tax year, treat it as a short-term loss. It does not retain its original identity as long term or short term.
A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. The corporation treats this $6,000 as a short-term loss when carried back or forward.
The corporation carries the $6,000 short-term loss back 3 years. In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. It subtracts the $6,000 short-term loss first from the net short-term gain. This results in a net capital gain for year 1 of $7,000. This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000.
A corporation generally figures and deducts a net operating loss (NOL) the same way an individual, estate, or trust does. For more information on these general rules, including the sequencing rule for when the corporation carries two of more NOLs to the same year, see Pub. 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts.
A corporation's NOL generally differs from individual, estate, and trust NOLs in the following ways.
A corporation can take different deductions when figuring an NOL.
A corporation must make different modifications to its taxable income in the carryback or carryforward year when figuring how much of the NOL is used and how much is carried over to the next year.
A corporation uses different forms when claiming an NOL deduction.
A corporation is not subject to section 461, which limits the amount of losses from the trades or businesses of noncorporate taxpayers.
For more information, see the Instructions for Form 1139, and the instructions for the corporation's tax return.
Generally, for NOLs arising in tax years ending after 2017, a corporation must carry the loss forward to future years. The corporation may carry the losses forward indefinitely. Special rules apply to certain farming losses and NOLs of insurance companies other than life insurance companies. See the Instructions for Form 1139.
If the NOL available for a carryback or carryforward year is greater than 80% of the taxable income for that year (100% for NOLs arising in tax years beginning before 2018), the corporation must modify its taxable income to figure how much of the NOL it will use up in that year and how much it can carry over to the next tax year.
Its carryover is the excess of the available NOL over its modified taxable income for the carryback or carryforward year.
The at-risk rules limit your losses from most activities to your amount at risk in the activity. The at-risk limits apply to certain closely held corporations (other than S corporations).
The amount at risk generally equals:
The money and the adjusted basis of property contributed by the taxpayer to the activity, and
The money borrowed for the activity.
The passive activity rules generally limit your losses from passive activities to your passive activity income. Generally, you are in a passive activity if you have a trade or business activity in which you do not materially participate during the tax year, or you have a rental activity.
The passive activity rules apply to personal service corporations and closely held corporations other than S corporations.
Corporations subject to the passive activity limitations must complete Form 8810. For more information on the passive activity limits, see the Instructions for Form 8810 and Pub. 925.
After you figure a corporation's taxable income, you figure its tax. This section discusses the tax rates, credits, and recapture taxes.
For tax years beginning after 2017, corporations, including qualified personal service corporations, figure their tax by multiplying taxable income by 21% (0.21). If the corporation is a member of a controlled group, the corporation must also complete Schedule O (Form 1120), Consent Plan and Apportionment Schedule for a Controlled Group.
For tax years beginning after 2017, if a corporation is an applicable taxpayer, a tax equal to the base erosion minimum tax amount for the tax year may be imposed. This tax is reported using Form 8991. See the Instructions for Form 8991 for additional information, including the definition of an applicable taxpayer.
A corporation's tax liability is reduced by allowable credits. The following list includes some of the credits available to corporations.
Foreign tax credit (see Form 1118).
Any qualified electric vehicle passive activity credit from prior years allowed for the current year from Form 8834. See Form 8810, Corporate Passive Activity Loss and Credit Limitations, to see if a credit is allowed for the current year for personal service corporations and closely held corporations.
General business credit.
See Form 3800 for a list of allowable business credits and other special rules. General business credits are treated as used on a first-in, first-out basis by offsetting the earliest-earned credits first. Therefore, the order in which the credits are used in any tax year is as follows.
Carryforwards to that year, the earliest ones first.
The general business credit earned in that year.
The carryback to that year.
Note. To carryback an unused credit, the corporation must file an amended return (Form 1120X, or other amended return) for the prior year, or an application for tentative refund (Form 1139).
Credit for prior year minimum tax, if applicable (see Form 8827).
Bond credits (see Form 8912).
A corporation is also allowed certain refundable credits such as the credit for federal tax on fuels used for certain nontaxable purposes (Form 4136). See the instructions for the corporation's income tax return for a list of other refundable credits that may be allowed for the current tax year.
A corporation's tax liability is increased if it recaptures credits it has taken in prior years. The following list includes some credits a corporation may need to recapture.
Investment credit (see the Instructions for Form 4255).
Low-income housing credit (see the Instructions for Form 8611).
New markets credit (see the Instructions for Form 8874).
Employer-provided childcare facilities and services credit (see the Instructions for Form 8882).
Indian employment credit (see the Instructions for Form 8845).
See the credits listed in the Instructions for Form 3800 for additional credits which may be subject to recapture.
A corporation can accumulate its earnings for a possible expansion or other bona fide business reasons. However, if a corporation allows earnings to accumulate beyond the reasonable needs of the business, it may be subject to an accumulated earnings tax of 20%. If the accumulated earnings tax applies, interest applies to the tax from the date the corporate return was originally due, without extensions.
To determine if the corporation is subject to this tax, first treat an accumulation of $250,000 or less generally as within the reasonable needs of most businesses. Treat an accumulation of $150,000 or less as within the reasonable needs of a business whose principal function is performing services in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts.
In determining if the corporation has accumulated earnings and profits beyond its reasonable needs, value the listed and readily marketable securities owned by the corporation and purchased with its earnings and profits at net liquidation value, not at cost.
Reasonable needs of the business include the following.
Specific, definite, and feasible plans for use of the earnings accumulation in the business.
The amount necessary to redeem the corporation's stock included in a deceased shareholder's gross estate, if the amount does not exceed the reasonably anticipated total estate and inheritance taxes and funeral and administration expenses incurred by the shareholder's estate.
The absence of a bona fide business reason for a corporation's accumulated earnings may be indicated by many different circumstances, such as a lack of regular distributions to its shareholders or withdrawals by the shareholders classified as personal loans. However, actual moves to expand the business generally qualify as a bona fide use of the accumulations.
The fact that a corporation has an unreasonable accumulation of earnings is sufficient to establish liability for the accumulated earnings tax unless the corporation can show the earnings were not accumulated to allow its individual shareholders to avoid income tax.
This section discusses corporate distributions of money, stock, or other property to a shareholder with respect to the shareholder's ownership of stock. However, this section does not discuss the special rules that apply to the following distributions. See the applicable sections of the Internal Revenue Code.
Distributions in redemption of stock (section 302).
Distributions in complete liquidation of the corporation (sections 331 through 346).
Distributions in corporate organizations (section 351). Also see Property Exchanged for Stock , earlier.
Distributions in corporate reorganizations (sections 354 through 368).
Certain distributions to 20% corporate shareholders (section 301(e)).
Most distributions are in money, but they may also be in stock or other property. For this purpose, "property" generally does not include stock in the corporation or rights to acquire this stock. However, see Distributions of Stock or Stock Rights , later.
A corporation generally does not recognize a gain or loss on the distributions covered by the rules in this section. However, see Gain from property distributions below.
Distributions by a corporation of its own stock are commonly known as stock dividends. Stock rights (also known as stock options) are distributions by a corporation of rights to acquire its stock. Distributions of stock dividends and stock rights are generally tax free to shareholders. However, if any of the following apply to their distribution, stock and stock rights are treated as property, as discussed under Money or Property Distributions , earlier.
Any shareholder has the choice to receive cash or other property instead of stock or stock rights.
The distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders.
The distribution is in convertible preferred stock and has the same result as in (2).
The distribution gives preferred stock to some common stock shareholders and gives common stock to other common stock shareholders.
The distribution is on preferred stock. (An increase in the conversion ratio of convertible preferred stock made solely to take into account a stock dividend, stock split, or similar event that would otherwise result in reducing the conversion right is not a distribution on preferred stock.)
The term "stock" includes rights to acquire stock and the term "shareholder" includes a holder of rights or convertible securities.
The following sections discuss transactions that may be treated as distributions.
A corporate distribution to a shareholder is generally treated as a distribution of earnings and profits. Any part of a distribution from either current or accumulated earnings and profits is reported to the shareholder as a dividend. Any part of a distribution that is not from earnings and profits is applied against and reduces the adjusted basis of the stock in the hands of the shareholder. To the extent the balance is more than the adjusted basis of the stock, the shareholder has a gain (usually a capital gain) from the sale or exchange of property.
For information on shareholder reporting of corporate distributions, see Pub. 550, Investment Income and Expenses.
If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.
Getting answers to your tax questions. On IRS.gov, get answers to your tax questions anytime, anywhere.
Go to IRS.gov/Help for a variety of tools that will help you get answers to some of the most common tax questions.
Go to IRS.gov/ITA for the Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. You can print the entire interview and the final response for your records.
You may also be able to access tax law information in your electronic filing software.
TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.
The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.
TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:
Your problem is causing financial difficulty for you, your family, or your business;
You face (or your business is facing) an immediate threat of adverse action; or
You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.
TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778.
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS.
TAS also has a website, Tax Reform Changes, which shows you how the new tax law may change your future tax filings and helps you plan for these changes. The information is categorized by tax topic in the order of the IRS Form 1040. Go to TaxChanges.us for more information.
Other Useful Forms for Corporations
|Other Useful Forms|
|Form||Use this form to—|
|W-2 and W-3—Wage and Tax Statement; and Transmittal of Wage and Tax Statements||Report wages, tips, and other compensation, and withheld income, social security, and Medicare taxes for employees.|
|W-2G—Certain Gambling Winnings||Report gambling winnings from horse racing, dog racing, jai alai, lotteries, keno, bingo, slot machines, sweepstakes, wagering pools, etc.|
|926—Return by a U.S. Transferor of Property to a Foreign Corporation||Report certain transfers to foreign corporations under section 6038B.|
|940—Employer's Annual Federal Unemployment (FUTA) Tax Return||Report and pay FUTA tax if the corporation either:
|941—Employer's QUARTERLY Federal Tax Return||Report quarterly income tax withheld on wages and employer and employee social security and Medicare taxes.|
|943—Employer's Annual Federal Tax Return for Agricultural Employees||Report income tax withheld and employer and employee social security and Medicare tax on farmworkers.|
|944—Employer's ANNUAL Federal Tax Return||File annual Form 944 instead of filing quarterly Forms 941, if the IRS notified you in writing.|
|945—Annual Return of Withheld Federal Income Tax||Report income tax withheld from nonpayroll payments, including pensions, annuities, individual retirement arrangements (IRAs), gambling winnings, and backup withholding.|
|952—Consent To Extend the Time To Assess Tax Under Section 332(b)||Extend the period of assessment of all income taxes of the receiving corporation on the complete liquidation of a subsidiary under section 332.|
|965—Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System||Calculate section 965(a) inclusion amounts, section 965(c) deductions, foreign taxes deemed paid in connection with a section 965(a) inclusion, and foreign taxes disallowed under section 965(g). See the Instructions for Form 965.|
|965-B—Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts||Report net 965 tax liability for each tax year in which a taxpayer must pay or include section 965 amounts. This form must be completed by a taxpayer for every tax year for which the taxpayer has any net 965 tax liability outstanding and not fully paid at any point during the tax year. See the Instructions for Form 965-B.|
|966—Corporate Dissolution or Liquidation||Report the adoption of a resolution or plan to dissolve the corporation or liquidate any of its stock.|
|1042 and 1042-S—Annual Withholding Tax Return for U.S. Source Income of Foreign Persons; and Foreign Person's U.S. Source Income Subject to Withholding||Report withheld tax on payments or distributions made to nonresident alien individuals, foreign partnerships, or foreign corporations to the extent these payments or distributions constitute gross income from sources within the United States that is not effectively connected with a U.S. trade or business. In addition, a publicly traded partnership is required to withhold on distributions of effectively connected income to its foreign partners. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.|
|1042-T—Annual Summary and Transmittal of Forms 1042-S||Transmit paper Forms 1042-S to the IRS.|
|1096—Annual Summary and Transmittal of U.S. Information Returns||Transmit paper Forms 1098, 1099, 5498, and W-2G to the IRS.|
|1097-BTC, 1098, 1098-C, 1098-E, 1098-T,1099-A, B, C, CAP, G, H, DIV, INT, K, LTC, MISC, OID, PATR, Q, R, S, SA, 3921, and 3922.
Important: Every corporation must file Forms 1099-MISC if, in the course of its trade or business, it makes payments of rents, services, commissions, or other fixed or determinable income (see section 6041) totaling $600 or more to any one person during the calendar year.
Also use these returns to report amounts received as a nominee for another person. For more details, see the General Instructions for Certain Information Returns (1097, 1098, 1099, 3921, 3922, 5498, and W-2G).
|Report the following:
|1122—Authorization and Consent of Subsidiary Corporation To Be Included in a Consolidated Income Tax Return||Include a subsidiary in a consolidated return. Attach this form to the parent's consolidated return. Attach a separate Form 1122 for each subsidiary being included in the consolidated return.|
|1138—Extension of Time for Payment of Taxes by a Corporation Expecting a Net Loss Carryback||Request an extension of time for payment of tax for the immediately preceding tax year if the corporation expects a net operating loss for the current year.|
|3520—Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts||Report ownership of and certain transactions with foreign trusts, including receipt of certain large gifts. See Schedule N (Form 1120), Question 5.|
|3520-A—Annual Information Return of Foreign Trust With a U.S. Owner||Report information about the foreign trust, its U.S. beneficiaries, and any U.S. person who is treated as an owner of any portion of the foreign trust.|
|5471—Information Return of U.S. Persons With Respect to Certain Foreign Corporations||Satisfy the reporting requirements of sections 6038 and 6046, and the related regulations, as well as report amounts related to section 965. Form 5471 and the related schedules are used by certain U.S. persons who are officers, directors, or shareholders in certain foreign corporations. See the Instructions for Form 5471.|
|5498—IRA Contribution Information||Report contributions (including rollover contributions) to any IRA, including a SEP, SIMPLE, or Roth IRA, and to report Roth IRA conversions, IRA recharacterizations, and the fair market value (FMV) of the account.|
|5498-ESA—Coverdell ESA Contribution Information||Report contributions (including rollover contributions) to a Coverdell education savings account (ESA).|
|5498-SA—HSA, Archer MSA, or Medicare Advantage MSA Information||Report contributions and rollovers to an HSA or Archer MSA and the FMV of an HSA, Archer MSA, or Medicare Advantage MSA. For more information, see the general and specific instructions for Forms 1098, 1099, 5498, and W-2G.|
|5713—International Boycott Report||Report operations in, or related to, a "boycotting" country, government, company, or national of a country and to figure the loss of certain tax benefits.|
|8023—Elections Under Section 338 for Corporations Making Qualified Stock Purchases||Make elections under section 338 for a "target" corporation if the purchasing corporation has made a qualified stock purchase of the target corporation.|
|8027—Employer's Annual Information Return of Tip Income and Allocated Tips||Report receipts from large food or beverage operations, tips reported by employees, and allocated tips.|
|8275—Disclosure Statement||Disclose items or positions, except those contrary to a regulation, that are not otherwise adequately disclosed on a tax return. The disclosure is made to avoid the parts of the accuracy-related penalty imposed for disregard of rules or substantial understatement of tax. Also use Form 8275 for disclosures relating to preparer penalties for understatements due to unrealistic positions or disregard of rules.|
|8275-R—Regulation Disclosure Statement||Disclose any item on a tax return for which a position has been taken that is contrary to Treasury regulations.|
|8281—Information Return for Publicly Offered Original Issue Discount Instruments||Report the issuance of public offerings of debt instruments (obligations).|
|8300—Report of Cash Payments Over $10,000 Received in a Trade or Business||Report the receipt, in the course of a trade or business, of more than $10,000 in cash or foreign currency in one transaction or a series of related transactions.|
|8594—Asset Acquisition Statement Under Section 1060||Report a sale of assets that make up a trade or business if goodwill or going concern value attaches, or could attach, to such assets and if the buyer's basis is determined only by the amount paid for the assets. Both the seller and buyer must use this form.|
|8806—Information Return for Acquisition of Control or Substantial Change in Capital Structure||Report an acquisition of control or a substantial change in the capital structure of a domestic corporation.|
|8842—Election To Use Different Annualization Periods for Corporate Estimated Tax||Elect one of the annualization periods in section 6655(e)(2) for figuring estimated tax payments under the annualized income installment method.|
|8849—Claim for Refund of Excise Taxes||Claim a refund of certain excise taxes.|
|8858—Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs)||Satisfy reporting requirements that apply if the corporation directly or indirectly owns a foreign disregarded entity or a foreign branch. A separate Form 8858 is required for each foreign branch or foreign disregarded entity. See the Instructions for Form 8858.|
|8865—Return of U.S. Person With Respect To Certain Foreign Partnerships||Report an interest in a foreign partnership. A domestic corporation may have to file Form 8865 if it:
The domestic corporation may also have to file Form 8865 to report certain dispositions by a foreign partnership of property it previously contributed to that partnership if it was a partner at the time of the disposition. For more details, including penalties for failing to file Form 8865, see the Instructions for Form 8865.
|8873—Extraterritorial Income Exclusion||Figure the amount of extraterritorial income excluded from gross income for the tax year (generally repealed for post-2004 income). See the Instructions for Form 8873.|
|8876—Excise Tax on Structured Settlement Factoring Transactions||Report and pay the 40% excise tax imposed under section 5891.|
|8883—Asset Allocation Statement Under Section 338||Report information about transactions involving the deemed sale of corporate assets under section 338.|
|8886—Reportable Transaction Disclosure Statement||Disclose information for each reportable transaction in which the corporation participated. Attach Form 8886 to the corporation's income tax return for each tax year in which it participated in a reportable transaction. The corporation may have to pay a penalty if it is required to file Form 8886 and does not do so. Other penalties may also apply. For more details, see the Instructions for Form 8886.|
|8918—Material Advisor Disclosure Statement||Disclose certain information about a reportable transaction to the IRS. Material advisors who file Form 8918 will receive a reportable transaction number from the IRS. This number must be provided to all taxpayers and material advisors for whom the material advisor acts as a material advisor. Other reporting requirements apply. See the Instructions for Form 8918.|
|8990—Limitation on Business Interest Expense Under Section 163(j)||Figure the amount of business interest expense the corporation can deduct and the amount to carry forward to the next year. See the Instructions for Form 8990.|
|8991—Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts||Determine an applicable taxpayer's base erosion minimum tax amount for the year. See the Instructions for Form 8991.|
|8992—U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI)||Figure a U.S. shareholder's GILTI inclusion for years in which they are U.S. shareholders of controlled foreign corporations (CFCs). See the Instructions for Form 8992.|
|8993—Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)||Figure the amount of the eligible deduction for FDII and GILTI under section 250.|
- Accounting methods, Accounting Methods
- Accrual method, Accrual method.
- Change in accounting method
- Section 481(a) adjustment, Change in accounting method.
- Mark-to-market accounting method, Mark-to-market accounting method.
- Nonaccrual experience method, Nonaccrual experience method.
- Percentage of completion method, Percentage of completion method.
- Accounting periods, Accounting Periods
- Accumulated earnings tax, Accumulated Earnings Tax
- Assistance (see Tax help)
- At-risk limits, At-Risk Limits
- Capital contributions, Capital Contributions
- Capital losses, Capital Losses
- Charitable contributions, Charitable Contributions
- Closely held corporation, Closely held corporations.
- At-risk limits, Closely held corporation.
- Comments, Comments and suggestions.
- Corporate preference items, Corporate Preference Items
- Corporations, businesses taxed as, Businesses Taxed as Corporations
- Dividends-received deduction, Dividends-Received Deduction
- Foreign tax credit, Credits
- 1096, Form 1099-DIV.
- 1099-DIV, Form 1099-DIV.
- 1118, Credits
- 1120, Which form to file.
- 1120-W, How to figure each required installment.
- 1120X, Refunds., NOL carryback.
- 1138, Carryback expected.
- 1139, Refunds., NOL carryback.
- 2220, Form 2220.
- 3800, Credits, Recapture Taxes
- 4255, Recapture Taxes
- 5452, Form 5452.
- 7004, Extension of time to file.
- 8611, Recapture Taxes
- 8827, Credits
- 8832, Business formed after 1996.
- 8834, Recapture Taxes
- 8845, Recapture Taxes
- 8874, Recapture Taxes
- 8882, Recapture Taxes
- 8912, Credits
- Going into business, Costs of Going Into Business
- Loans, below-market, Below-Market Loans
- Other useful forms, Publication 542 - Additional Material
- Paid-in capital, Paid-in capital.
- Passive activity limits, Passive Activity Limits
- Paying estimated tax, How to pay estimated tax.
- Personal service corporation, Personal service corporations.
- Preference items, Corporate Preference Items
- Publications (see Tax help)
- Recapture taxes
- Recordkeeping, Recordkeeping
- Related persons, Related Persons
- Retained earnings, Accumulated Earnings Tax