An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation’s shareholders include their share of the corporation’s separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.
If you are an S corporation use the information in the charts below to help you determine some of the forms that you may be required to file.
Chart 1 – S Corporation
| If you are an S corporation then you may be liable for… | Use Form… |
| Income Tax | 1120S (S corporation) |
| Estimated tax | 1120-W (corporation only) and 8109 |
Employment taxes:
|
941 ( 943 for farm employees)940 or 940-EZ 8109 |
| Excise Taxes | Refer to the Excise Tax web page |
Chart 2 – S Corporation Shareholders
| If you are an S corporation shareholder then you may be liable for… |
Use Form… |
| Income Tax | 1040 and Schedule E |
| Estimated tax | 1040-ES |
