Corporation Income

• 1). File a form 1120 to report your corporation's income. Write in the appropriate tax date and year in the blank spaces at the top of the form. Place a check mark in box A to indicate the type of return you are filing: consolidated, life/non-life consolidated return, personal holdings company, personal service corporation or a schedule M-3. Print or type your name and address info on the tax return. Include your employer identification number, or EIN, the date your company became incorporated and the company's total assets. Also indicate whether this is an initial return, final return or a return due to a name change or an address change.
  
  
• 2). Complete lines 1a through 11 to complete the income section of form 1120. Write in the total gross receipts and sales along with the returns and balances for line 1a and 1b. Subtract the amounts to get the balance for line 1c. Using Schedule A: Costs of Goods, that comes with form 1120, place the cost of goods on line 2. Calculate the gross profit for line 3 by subtracting line 2 from 1c. Review Schedule C: Dividends and Special Deductions, and place the amount of dividends on line 4. Write the interest on line 5, gross rents on line 6 and gross royalties on line 7.
  
  
• 3). Write the capital gain net income on line 8. Figure out your company's net gain, or loss, from IRS form 4797: Sales of Business Property, to place the amount on line 9. Report other income on line 10 and total up all the lines to get the total income. Put the total income amount on line 11.
  
  

Corporation Deductions

• 1). Place the compensation of officers, from Schedule E, on line 12. Write in the salaries and wages, minus the employment taxes, on line 13, and the corporation's repairs and maintenance on line 14. From lines 15 through 19, fill in the spaces with the amounts for bad debts, rents, taxes and licenses, interests and charitable contributions.
  
  
• 2). Evaluate IRS form 4562: Depreciation and Amortization. Pen in the depreciation not claimed on Schedule A or anywhere on the tax return on line 20. Fill in the amount you have for depletion on line 21 along with the advertising amount and any corporation pension or profit-sharing on lines 22 and 23. Place the amount for employee benefit programs on line 24.
  
  
• 3). On line 25, write in your company's domestic production activities deduction and attach form 8903: Domestic Production Activities Deduction. Include other deductions on line 26 and add it with lines 12 through 25 to receive the total deductions, with the amount written on line 27. Place on line 28 your company's taxable income before net operating loss deductions and the special deductions by subtracting line 27 from line 11. On lines 29a and 29b, place the net operating deductions and special deductions from Schedule C. Subtract 29a from 29b to receive the total for 29c.
  
  

Corporation Tax, Refundable Credits and Payments

• 1). Calculate the taxable income by subtracting line 29c to line 28, and place the amount on line 30. Review Schedule J: Tax Computation, to get the total tax for line 31. If you received a prior year's overpayment of credit to the year of this filed return, place the amount on line 32a. Any estimated tax payment for the year of this filed return should be placed on line 32b.
  
  
• 2). On your form 4466 for Corporate Application for Quick Refund of Overpayment of Estimated Taxes, place the amount on line 32c. Enter the balance amount totaled from lines 32a through 32c on line 32d. Place the tax deposited from form 7004: Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns on line 32e. Write in the credits from Form 2439: Notice to Shareholder of Undistributed Long-Term Capital Gains: and Form 4136: Credit for Federal Tax Paid on Fuels on line 32f. If your company has and refundable credits from Form 3800: General Business Credit and Form 8827: Credit for Prior Year Minimum Tax, then place it on line 32g. Place the total amount of credits from lines 32a through 32g on line 32h.
  
  
• 3). Check the box on line 33 if you have any estimated tax penalty and attach Form 2220: Underpayment of Estimated Tax by Corporations, to this return. Review if the amount on line 32h is less than the total of lines 31 and 33. Enter the amount owed on line 34. If line 32h is larger than the total on lines 31 and 33, enter the amount overpaid on line 35. On line 36, decide if you want a credit of the amount from line 35 to be applied to next year's estimated tax return or if you want a refund.
  
  
• 4). Place the signature of the officer who filled out the return on the line provided along with the date and the person's title. Indicate whether or not the IRS can discuss the return if you had paid a preparer to file it. Include the paid preparer's information on the spaces provided at the bottom of the form.