CHAPTER2-LECTURE4 - XV FILING REQUIREMENTS(1 FORM 1120(2...

XV. FILING REQUIREMENTS
(1) FORM 1120
(2) FORM 1120-A (SHORT-FORM)
(1) GROSS RECEIPTS UNDER $500,000
(2) TOTAL INCOME UNDER $500,000
(3) TOTAL ASSETS UNDER $500,000
( EACH OF THESE MUST BE UNDER
$500,000)
(FORM 1120-A NO LONGER ALLOWED
BEGINNING JANUARY 1, 2007)
(3) DUE DATE
15TH DAY OF 4TH MONTH AFTER END
OF TAX YEAR (3RD MONTH PRIOR TO
TAX YEARS BEGINNING BEFORE 2016)
FORM 7004 – AUTOMATIC SIX (6)
MONTH EXTENSION TO FILE FOR
MOST CORPORATIONS (FIVE (5)
MONTHS FOR CALENDAR YEAR
CORPORATIONS AND SEVEN (7)
MONTHS FOR JUNE 30 YEAR-END
CORPORATIONS)
(MUST PAY ESTIMATED TAX)

ADDITIONAL THREE (3) MONTH
EXTENSION – REQUIRE INTERNAL
REVENUE SERVICE (IRS) APPROVAL
(4) ESTIMATED TAX PAYMENTS
IF TAX LIABILITY EXPECTED TO BE
$500 OR MORE, REQUIRED TO MAKE
QUARTERLY ESTIMATED TAX
PAYMENTS OF AT LEAST THE
SMALLER OF:
(1) 100% OF THIS YEAR’S TAX
LIABILITY
OR
(2) 100% OF LAST YEAR’S TAX
LIABILITY
(THIS OPTION IS NOT AVAILABLE TO
CORPORATIONS THAT HAD NO TAX LIABILITY IN THE PRECEDING
TAX YEAR OR TO CORPORATIONS THAT HAD TAXABLE INCOME OF
$1,000,000 OR MORE IN ANY OF THE THREE (3) PRECEDING TAX
YEARS (IE. LARGE CORPORATION) (EXCEPT FOR FIRST
INSTALLMENT PAYMENT))
FAILURE TO DO SO RESULTS IN NON-
DEDUCTIBLE UNDERPAYMENT PENALTY
(5) SCHEDULE M-1 RECONCILIATION
RECONCILIATION OF BOOK
(FINANCIAL ACCOUNTING) NET
INCOME TO TAXABLE INCOME

NET INCOME PER BOOKS
TAXABLE INCOME
(BEFORE NOL AND DRD)
ADDITIONS
NON-DEDUCTIBLE EXPENSES
(1) LIFE INSURANCE PREMIUMS
(2) EXPENSES AND INTEREST
RELATED TO TAX-EXEMPT
INCOME ITEMS
(3) EXCESS CAPITAL LOSSES
(4) ESTIMATED WARRANTY
RESERVES
(5) FEDERAL INCOME TAXES
(6) 50% OF MEALS AND
ENTERTAINMENT EXPENSES
SUBTRACTIONS
NON-TAXABLE INCOME
(1) LIFE INSURANCE PROCEEDS
(2) TAX-EXEMPT INTEREST
INCOME
DEPRECIATION
+/- DIFFERENCE BETWEEN BOOK
DEPRECIATION AND TAX

DEPRECIATION
(IF BOOK DEPRECIATION IS MORE
THAN TAX DEPRECIATION, ADD THE
DIFFERENCE. IF TAX DEPRECIATION
IS MORE THAN BOOK
DEPRECIATION, SUBTRACT THE
DIFFERENCE)
TIMING DIFFERENCES
+/- TIMING DIFFERENCES (PREPAID
RENT, ETC.)
(ADD ONE YEAR AND SUBTRACT THE
FOLLOWING YEAR)
(6) SCHEDULE M-2 RECONCILIATION
RECONCILIATION OF
UNAPPROPRIATED BOOK RETAINED
EARNINGS
BEGINNING BOOK