Form 1120S Form 1120S U.S. Income Tax Return for an S Corporation

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Form

1120S

Department of the Treasury
Internal Revenue Service

U.S. Income Tax Return for an S Corporation

OMB No. 1545-0130

Do not file this form unless the corporation has filed or is
attaching Form 2553 to elect to be an S corporation.
▶ Information about Form 1120S and its separate instructions is at www.irs.gov/form1120s.

2013

▶

For calendar year 2013 or tax year beginning
A S election effective date

, 2013, ending

, 20

Name

D Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

F Total assets (see instructions)

DRAFT AS OF
June 17, 2013
DO NOT FILE
TYPE

B Business activity code
number (see instructions)

OR

PRINT

C Check if Sch. M-3 attached

$

Yes
No
If “Yes,” attach Form 2553 if not already filed
G Is the corporation electing to be an S corporation beginning with this tax year?
(4)
(3)
(5)
Name change
Address change
S election termination or revocation
Final return (2)
Amended return
H Check if: (1)
▶
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .
Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a

1a
. . . . . . . . . . . . . .
. . . . . . . . . . . . . .
1b
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . .
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . .
Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . .
Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . ▶
Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .
Bad debts
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . .
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 7 through 19
. . . . . . . . . . . . . . . . ▶
Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . .
Excess net passive income or LIFO recapture tax (see instructions) . . 22a
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . .
2013 estimated tax payments and 2012 overpayment credited to 2013 23a
Tax deposited with Form 7004 . . . . . . . . . . . . 23b
Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c
Add lines 23a through 23c
. . . . . . . . . . . . . . . . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ▶
Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . .
Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . .
Enter amount from line 26 Credited to 2014 estimated tax ▶
Refunded ▶
Gross receipts or sales .

Tax and Payments

Deductions (see instructions for limitations)

Income

b Returns and allowances

c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 a
b
c
23 a
b
c
d
24
25
26
27

22c

23d
24
25
26
27

Paid
Preparer
Use Only

Date

Signature of officer

Print/Type preparer’s name

Preparer's signature

▲

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)?

▲

Sign
Here

1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Yes

Title

Date

Check
if
self-employed

Firm’s name

▶

Firm's EIN

Firm's address

▶

Phone no.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11510H

No

PTIN

▶

Form 1120S (2013)

Form 1120S (2013)

Schedule B
1
2
3
4

Page

2

Other Information (see instructions)

a
c
See the instructions and enter the:
a Business activity ▶
Check accounting method:

Yes No

Cash
b
Accrual
Other (specify) ▶
b Product or service ▶

DRAFT AS OF
June 17, 2013
DO NOT FILE

At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? If "Yes," attach Schedule B-1, Information on Certain Shareholders of an S Corporation . .
At the end of the tax year, did the corporation:
a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any
foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v)
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(i) Name of Corporation

(ii) Employer Identification Number
(if any)

(iii) Country of
Incorporation

(iv) Percentage of Stock
Owned

(v) If Percentage in (iv) is 100%, Enter the
Date (if any) a Qualified Subchapter S
Subsidiary Election Was Made

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a
trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .
(i) Name of Entity

(ii) Employer Identification Number
(if any)

(iv) Country of
Organization

(iii) Type of Entity

(v) Maximum Percentage Owned in Profit,
Loss, or Capital

5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . .
If “Yes,” complete lines (i) and (ii) below.
(i)
Total shares of restricted stock . . . . . . . . . ▶
(ii) Total shares of non-restricted stock . . . . . . . . ▶
b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?
If “Yes,” complete lines (i) and (ii) below.
(i)
▶
Total shares of stock outstanding at the end of the tax year
(ii) Total shares of stock outstanding if all instruments were executed
6
7

.

.

▶

Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction?
. . . . . . . . . . . . . . . . . . . . . . . .
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . ▶
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.

If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an
asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in
the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain
from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see
instructions) . . . . . . . . . . . . . . . ▶ $
$
9
Enter the accumulated earnings and profits of the corporation at the end of the tax year.
10
Does the corporation satisfy both of the following conditions?
a The corporation’s total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . .
b The corporation’s total assets at the end of the tax year were less than $250,000
. . . . . . . . . . . .
If “Yes,” the corporation is not required to complete Schedules L and M-1.
8

11

During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had
terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . .
If “Yes,” enter the amount of principal reduction $
12
During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions
13 a Did the corporation make any payments in 2013 that would require it to file Form(s) 1099? . . . . . . . . .
b If “Yes,” did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . .

the
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Form 1120S (2013)

Form 1120S (2013)

Credits

Deductions

Income (Loss)

Schedule K

Foreign Transactions
Alternative
Minimum Tax
(AMT) Items

3

Total amount

1
2
3a
b
c
4
5

Ordinary business income (loss) (page 1, line 21) . . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . . .
Other gross rental income (loss) . . . . . . . . . .
3a
Expenses from other rental activities (attach statement)
. .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . .
Interest income . . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . . .
b Qualified dividends . . . . . . . . . .
5b
6
Royalties . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . .
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . .
b Collectibles (28%) gain (loss) . . . . . . . . . . .
8b
c Unrecaptured section 1250 gain (attach statement) . . . .
8c
9
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . .
10
Other income (loss) (see instructions) . . Type ▶
11
Section 179 deduction (attach Form 4562) . . . . . . . . . .
12a Charitable contributions . . . . . . . . . . . . . . .
b Investment interest expense . . . . . . . . . . . . . .
c Section 59(e)(2) expenditures (1) Type ▶
d Other deductions (see instructions) . . .
Type ▶
13a Low-income housing credit (section 42(j)(5)) . . . . . . . . .
b Low-income housing credit (other) . . . . . . . . . . . .
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468)
d Other rental real estate credits (see instructions) Type ▶
e Other rental credits (see instructions) . . . Type ▶

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DRAFT AS OF
June 17, 2013
DO NOT FILE
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3c
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5a

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12a
12b

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(2) Amount ▶

12c(2)

12d
13a
13b
13c
13d
13e
13f
13g

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Gross income from all sources . . . . . . . . . . . . . . . .
Gross income sourced at shareholder level . . . . . . . . . . . .
Foreign gross income sourced at corporate level
d Passive category
. . . . . . . . . . . . . . . . . . . .
e General category
. . . . . . . . . . . . . . . . . . . .
f Other (attach statement) . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at shareholder level
g Interest expense . . . . . . . . . . . . . . . . . . . . .
h Other . . . . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at corporate level to foreign source income
i Passive category
. . . . . . . . . . . . . . . . . . . .
j General category
. . . . . . . . . . . . . . . . . . . .
k Other (attach statement) . . . . . . . . . . . . . . . . . .
Other information
l Total foreign taxes (check one): ▶
Paid
Accrued . . . . . . .
m Reduction in taxes available for credit (attach statement) . . . . . . . .
n Other foreign tax information (attach statement)
15a Post-1986 depreciation adjustment . . . . . . . . . . . . . . .
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . .
c Depletion (other than oil and gas)
. . . . . . . . . . . . . . .
d Oil, gas, and geothermal properties—gross income . . . . . . . . . .
e Oil, gas, and geothermal properties—deductions . . . . . . . . . . .
f Other AMT items (attach statement) . . . . . . . . . . . . . . .
16a Tax-exempt interest income . . . . . . . . . . . . . . . . .
b Other tax-exempt income . . . . . . . . . . . . . . . . . .
c Nondeductible expenses . . . . . . . . . . . . . . . . . .
d Distributions (attach statement if required) (see instructions) . . . . . . .
e Repayment of loans from shareholders . . . . . . . . . . . . . .

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14c

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14d
14e
14f

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14g

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14i
14j
14k

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14l
14m

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15a
15b
15c
15d
15e
15f
16a
16b
16c
16d
16e

f
g
14a
b
c

Items Affecting
Shareholder
Basis

Page

Shareholders’ Pro Rata Share Items

Biofuel producer credit (attach Form 6478)
Other credits (see instructions) . . . .
Name of country or U.S. possession ▶

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Type ▶

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14h

Form 1120S (2013)

Form 1120S (2013)

ReconOther
ciliation Information

Schedule K

Page

4

Total amount

Shareholders’ Pro Rata Share Items (continued)

17a
b
c
d

Investment income . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . .
Dividend distributions paid from accumulated earnings and profits
Other items and amounts (attach statement)

18

Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l

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17a
17b
17c

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DRAFT AS OF
June 17, 2013
DO NOT FILE

Schedule L

Balance Sheets per Books

Beginning of tax year

Assets

(a)

1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15

Cash . . . . . . . . . . . .
Trade notes and accounts receivable . .
Less allowance for bad debts . . . . .
Inventories
. . . . . . . . . .
U.S. government obligations . . . . .
Tax-exempt securities (see instructions) .
Other current assets (attach statement) . .
Loans to shareholders . . . . . . .
Mortgage and real estate loans . . . .
Other investments (attach statement) . .
Buildings and other depreciable assets . .
Less accumulated depreciation . . . .
Depletable assets . . . . . . . .
Less accumulated depletion . . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
Less accumulated amortization . . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . .
Liabilities and Shareholders’ Equity

16
17
18
19
20
21
22
23
24
25
26
27

Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . .
Loans from shareholders . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
Capital stock . . . . . . . . . . .
Additional paid-in capital . . . . . . .
Retained earnings . . . . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity
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18

End of tax year

(b)

(c)

(d)

(

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(

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(

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(

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(

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(

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(

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(

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(

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(

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Form 1120S (2013)

Form 1120S (2013)

Schedule M-1

Page

5

Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note. Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

1

Net income (loss) per books

2

Income included on Schedule K, lines 1, 2, 3c, 4,
5a, 6, 7, 8a, 9, and 10, not recorded on books this
year (itemize)

3

Expenses recorded on books this year not
included on Schedule K, lines 1 through 12 and
14l (itemize):
Depreciation $
Travel and entertainment $

a
b
4

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5 Income recorded on books this year not included
on Schedule K, lines 1 through 10 (itemize):
a Tax-exempt interest $

DRAFT AS OF
June 17, 2013
DO NOT FILE

Add lines 1 through 3

Schedule M-2

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6 Deductions included on Schedule K,

lines 1 through 12 and 14l, not charged
against book income this year (itemize):

a Depreciation $

7 Add lines 5 and 6
. . . . .
8 Income (loss) (Schedule K, line 18). Line 4 less line 7

Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Undistributed Taxable Income Previously Taxed (see instructions)
(a) Accumulated
adjustments account

1
2
3
4
5
6
7
8

Balance at beginning of tax year . . . . .
Ordinary income from page 1, line 21 . . .
Other additions . . . . . . . . . .
(
Loss from page 1, line 21 . . . . . . .
(
Other reductions . . . . . . . . . .
Combine lines 1 through 5 . . . . . . .
Distributions other than dividend distributions
Balance at end of tax year. Subtract line 7 from line 6

(b) Other adjustments
account

)
)(

(c) Shareholders’ undistributed
taxable income previously taxed

)

Form 1120S (2013)