U.S. Corporation Tax Return: A Founder's Guide on Who Files and When
For any entrepreneur with a U.S company regardless of the state it is registered, understanding the federal tax system is non-negotiable. At the heart of this system for incorporated businesses is the U.S. Corporation Income Tax Return, commonly known as Form 1120.
Failing to understand your filing obligations can lead to significant penalties, interest, and unnecessary stress. This guide will clarify two of the most fundamental questions founders have: “Am I required to file?” and “When is the deadline?”
Who is Required to File a Corporation Tax Return?
The answer depends on your company’s legal structure and how it’s taxed by the IRS.
C Corporations
If your business is structured as a C Corporation, the rule is simple: you must file a corporation income tax return (Form 1120) every year.
This requirement applies regardless of whether your company generated taxable income. Even if your business was inactive or operated at a loss for the entire year, a tax return must be filed. This is a critical point that many new founders overlook.
When is the Tax Deadline?
Meeting the filing deadline is just as important as the filing itself. For C Corporations, the deadline is determined by the company’s fiscal year.
For Corporations on a Calendar Year
If your company’s fiscal year ends on December 31st (which is the most common), your tax return is due by the 15th day of the fourth month after the end of that year.
Need More Time? The Six-Month Extension
The IRS understands that businesses may need more time to get their paperwork in order. You can get an automatic six-month extension to file your return by submitting Form 7004 on or before the original due date.
- Extended Filing Deadline: October 15th
A crucial warning: An extension to file is not an extension to pay. You must still estimate the amount of tax you owe and pay it by the original April 15th deadline. Failing to do so can result in penalties and interest, even if you have filed an extension.
IRS: The Authority in Charge
The Internal Revenue Service (IRS) is the federal government agency responsible for collecting taxes and administering the Internal Revenue Code. The IRS is the sole authority to which Form 1120, the U.S. Corporation Income Tax Return, must be submitted. All requirements, deadlines, and penalties discussed here are set and enforced by the IRS. Understanding that the IRS is your primary federal tax counterpart is the first step in ensuring your corporation maintains proper compliance and avoids enforcement actions.
Stay Ahead of Your Tax Obligations
Navigating IRS requirements, from identifying the correct forms to meeting every deadline, can be a significant burden for founders. At Taxculate, our purpose is to lift that burden. We manage your corporate tax filings from start to finish, ensuring you remain compliant, avoid penalties, and can dedicate your full attention to growing your business.
