Form 1120 Filing

For the calendar year C corporations, a Form 1120 is due on April 15 of the following year; on the other hand, fiscal year corporations must file by the 15th day of the fourth month after the year-end. However, an extension of 6 months can be obtained by filing Form 7004, though the tax payment must be made as per the original due date.

A form 1120 corporate tax rate is at flat 21% on the on taxable income according to the Tax Cuts and Jobs Act, however this rate applies regardless of the corporation’s income level, while state corporate taxes are levied separately.

Yes, a foreign-owned US corporation needs to file Form 1120, including Delaware C-Corps and Wyoming C-Corps owned by non-US persons. Additionally, they will also have to file Form 5472 to disclose related-party transactions, while Failure to file Form 5472 will be imposed with a $25,000 penalty per missed form per year.

If you don’t file Form 1120 on time, then the IRS will impose a penalty of 5% of the unpaid tax per month up to a maximum of 25%. Additionally, an interest keeps adding to the unpaid taxes, resulting in audit risk, loss of good standing status and difficulty in raising capital or signing contracts.

No. Even if your C corporation had zero income, zero expenses, and no business activity during the tax year, you are still required to file a Form 1120 with all zeros. Filing a "zero return" maintains good standing and avoids penalties.

The most common deductions on Form 1120 in U.S. include officer compensation, salaries and wages, rent, utilities, advertising, professional fees, depreciation, employee benefits, charitable contributions (limited to 10% of taxable income), along with interest expenditures, bad debts and R&D costs.

A Form 5472 is an IRS information return to be filed by a U.S. company that is at least owned 25% by a foreign person or entity having transactions with related foreign parties during the current tax year. Often, it is submitted along with Form 1120, while in some cases, even a foreign-owned single-member LLC treated as a disregarded entity must file Form 5472 with a pro-forma Form 1120 to report these transactions to the IRS.

There's no traditional franchise tax in Wyoming, unlike Delaware and Texas. You also don’t have any state-level income tax, including corporate and personal tax. All you need to pay is USD 60 as an annual license tax.

Yes, you can file Form 1120 by yourself before the IRS provided you have a decent understanding, since it is quite complex for most of the corporations. It even becomes more difficult if there is foreign ownership, multi-state business, depreciation, R&D credits, or NOL carryforwards. In such cases, it is recommended to assign a qualified CPA or EA, like those at Enterslice, who can help ensure accurate filing, better tax savings, and reduced audit risk.

Enterslice offers Form 1120 filing at a clear, fixed fee that depends on factors like the number of partners, complexity of the business, multi-state operations, and foreign partner involvement. Our pricing is competitive compared to Big 4 firms and has no hidden charges. You can contact us for a free consultation and a customized quote.