How to File 1120S Online for Your S Corporation Tax Return

Filing an 1120S tax return is essential for S Corporations to comply with IRS regulations. With the rise of digital solutions, online filing streamlines the process, saving time and minimizing errors.

Confirm S Corporation Filing Requirements

Before filing an 1120S tax return online, confirm that your business qualifies for S Corporation status. The IRS requires that your corporation is a domestic entity with no more than 100 shareholders, all of whom must be individuals, estates, or certain trusts. Additionally, the corporation must have only one class of stock, as outlined in Internal Revenue Code Section 1361.

Meeting the filing deadline is critical to avoid penalties. The 1120S form is due on the 15th day of the third month after the end of the corporation’s tax year—March 15 for calendar year filers. Late submissions incur penalties of $210 per month, per shareholder.

Prepare Relevant Financial Documents

Accurate financial documents are a prerequisite for filing the 1120S tax return online. These include income statements, balance sheets, and cash flow statements, which collectively provide a detailed view of the corporation’s financial health. The income statement highlights revenues and expenses, while the balance sheet summarizes assets, liabilities, and equity.

Reconcile book income with taxable income by making necessary adjustments for items such as depreciation, tax-exempt income, and non-deductible expenses. Refer to IRS instructions for Form 1120S to ensure compliance. Documentation for deductions or credits, such as the Research and Development Tax Credit or employee benefits, should also be organized.

Select an IRS-Authorized Method for Online Submission

Choosing an IRS-authorized e-file provider is an important step in submitting your return online.

Account Setup

Set up an account with an IRS-authorized e-file provider like TurboTax Business or H&R Block Business Tax Software. These platforms guide users through the filing process with user-friendly interfaces. Provide essential details, such as the corporation’s Employer Identification Number (EIN) and contact information. Verify that the provider is listed on the IRS website as authorized to e-file. Enter the required financial data to proceed with the filing.

Digital Signature

A digital signature is required for e-filing the 1120S return. Use Form 8453-S to authenticate the signature, which must be submitted electronically with the return. The corporation’s authorized signer, typically an officer, will need a Personal Identification Number (PIN) from the IRS to complete this step securely.

Input Payment or Refund Details

Ensure the accurate entry of payment or refund details. If taxes are owed, provide bank account information for electronic funds withdrawal, with the option to schedule payments in advance. For refunds, supply bank details for direct deposit. Verify account and routing numbers to avoid errors. Retain records of these transactions for future reference.

Transmit Return and Retain Filing Confirmation

Once all steps are complete, transmit your 1120S return to the IRS. Carefully review the return for accuracy and consistency with financial records. Many e-file platforms include validation tools to catch errors before submission.

Follow the e-file provider’s instructions to submit the return. Upon successful transmission, the IRS will issue an acknowledgment of receipt, including a timestamp. This confirmation serves as proof of filing and may be important in the event of future inquiries or disputes.