IRS 1120 S Schedule K 1 and your role as a shareholder
What is form IRS 1120 S Schedule K 1?
Form IRS 1120 S Schedule K 1 is for reporting shareholders’ shares of income, credits, and deductions, etc..
Schedule K-1 doesn’t show actual dividend distributions a corporation made to you. The corporation must report such amounts totaling $10 or more for the calendar year on Form 1099-DIV, Dividends and Distributions.
You should keep the form for your records. Don’t file it with your tax return unless backup withholding is reported.
Who must file IRS 1120- S Schedule K-1 form?
S corporations need to file a Schedule K 1 form and send it to each shareholder. It is only for the shareholder’s use. You may be liable for tax on your share of the corporation’s income, whether or not distributed. Include your share on your tax return if a return is required.
When is IRS 1120- S Schedule K-1 due?
S-Corporations are required to issue a Schedule K-1 to shareholders by March or by the extended deadline i.e. September 15th.
What information do you need to complete this form?
In the form, you need to provide information about the shareholder including their name, address, and Employer Identification Number (EIN). Then provide information about the current year income, deductions, and credits. Go through the instructions here before filling the form or check out the following video:
Where do you file IRS 1120- S Schedule K-1?
Although you don’t need to file Schedule K-1, it must be provided to each person who was a shareholder at any time during the tax year either on or before the date the S-corporation’s tax return is required to be filed.
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