Mistakes are part of being a business owner. At one point or another, you may make a mistake on a form, such as your business income tax return. If your business is structured as a C Corp or taxed as a corporation, you can use Form 1120X to amend your original return. Read on to learn all about Form 1120 amended return and how to use it to correct errors.
Form 1120 overview
Before you can learn about an 1120 amended return, you need to know what Form 1120 is. Form 1120, U.S. Corporate Income Tax Return, is the form incorporated businesses use to file income taxes for the year. Corporations must use Form 1120 to report things like income, gains, losses, deductions, and credits.
If your business is a corporation or files as one (e.g., LLCs filing as a corporation), you must file Form 1120. The form will tell you how much your business needs to pay in income taxes for the period.
Form 1120 amended return
So, what is a Form 1120 amended return? An amended Form 1120, also called Form 1120X, comes into play when you make a mistake on the corporate income tax return.
Form 1120X, Amended U.S. Corporation Income Tax Return, allows businesses to correct mistakes made on their already filed Form 1120.
You may need to file an amended Form 1120 if you forgot to include expenses or deductions on your originally filed form. Or, you may need to amend your form if you claimed a deduction you shouldn’t have.
Common Form 1120X questions
To learn more about Form 1120X, check out the answers to common questions below.
Who can file the form?
Again, only businesses that need to file Form 1120 can use Form 1120X. This includes:
C corporations LLCs filing as a corporation
You may be wondering, Can S corporations file Form 1120X? Because S Corps don’t file Form 1120, they should not use Form 1120X for amended returns. Instead, they must use a Form 1120-S amended return.
What can’t you use Form 1120X for?
Do not use Form 1120X to:
Apply for a quick refund of estimated tax Request IRS approval for a change in accounting method Obtain a tentative refund of taxes due to a net operating loss carryback, a net capital loss carryback, an unused general business credit carryback, or a claim of right adjustment under section 1341(b)(1)
According to the IRS, you can use the form to either:
Correct a Form 1120 as originally filed Correct a Form 1120 later adjusted by an amended return, a claim for refund, or an examination Make certain elections after the prescribed deadline What kind of information do you put on the Form 1120X?
The following information goes on Form 1120X:
Business name and address EIN Income and deductions Payments and credits Tax due or overpayment Explanation of changes Signature
On your amended form, also provide information from your originally filed tax return, as well as new totals based on your new information.
Depending on what you are amending, you may also need to attach certain documents. For example, if your correction includes income, deductions, or credits, attach the appropriate schedule, statement, or form to your amended return form. Don’t forget to attach any supporting documents (if needed).
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