CHAPTER2-LECTURE4 - 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

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

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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)
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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
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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
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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
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