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Corporation Tax

IRS tax form 1120 or IRS tax form 1120-A is used for corporation tax filing. The IRS tax form 1120 or 1120-A is called the U.S. Corporation Income Tax Return or the US Corporation Short Form Income Tax Return.

A C Corporation tax filing is more complicated than an S Corporation tax filing. First of all a corporation is usually set up when there is a transfer of money, property or both from shareholders and the C Corporation in exchange for capital or stock of the corporation.

If a corporation has no income, must the corporation file tax return?

Absolutely! A C corporation must file income tax return to the IRS even if there is no income and the corporation has not earned any money for the year of its corporation tax filing. Corporation profits are taxed to the corporation unlike in the S corporation where profits are distributed to the shareholders of the S corporation who file their own separate tax returns. In a C corporation, profits are distributed as dividends and then taxed to the shareholders.

Estimated Tax of a Corporation

Estimated tax makes corporation tax preparation more complicated than its S corporation counterpart. Every corporation whose tax is expected to be at least $500 must make estimated tax payments. The estimated tax payments are deposited with an authorized financial institution or the Federal Reserve. When depositing an estimated tax for a corporation, the IRS tax form 8109 must also be filed.

IRS tax form 8109

Are contributions to the capital of the corporation taxable income?

No, contributions to the capital of a C corporation are considered 'paid in capital' and are not taxable income to the C corporation.