Continuing the conversation from last week about tax forms for corporations, there’s another type of Schedule K-1, for S Corporations. The tax return for an S corporation is the Form 1120S, but because S corporations “pass through” their profits to shareholders, the IRS requires that corporations fill out a Schedule K-1 for each shareholder. On this Schedule, the corporation will break down that shareholder’s portion of the profits (or losses) from that tax year.
The S corporation should be sure to send a copy of the Schedule K-1 to the shareholder, as they will use the information on their individual tax return.
Do you run an S corporation and need to fill out a Schedule K-1? Click here to get started on filling out an IRS Form 1120S Schedule K-1 on PDFfiller. And PDFfiller can help you with the rest of your tax forms too, so you can be done with tax season faster than ever!
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