1120A Form: IRS Corporation Short-Form Income Tax Return

The 1120A Form, or U.S. Corporation Short-Form Income Tax Return, was a simplified IRS document for eligible C corporations to report income, deductions, and tax liability, issued for tax year 2006 only. Starting in 2007, the IRS discontinued Form 1120-A, requiring all C corporations to file the full Form 1120. Form 1120-A was intended for small corporations with gross receipts, total income, and total assets under $500,000, allowing them to file their annual federal income tax in just two pages, including income, deductions, tax computation, and a condensed balance sheet.

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Form 1120-A: Official Details and Specifications

IRS Form 1120-A, the U.S. Corporation Short-Form Income Tax Return, was created by the Department of the Treasury for tax years ending on or before December 31, 2006. The form allowed eligible C corporations to report gross receipts, dividends, interest, rents, ordinary deductions, and tax computations in a condensed two-page format.

Who needed to file Form 1120-A: Corporations qualified only if gross receipts, total income, and total assets were each below $500,000, the corporation was not a member of a controlled group, had no foreign income or foreign tax credit, did not own 50% or more of a foreign corporation, had no ownership change under Section 382, and had no net operating loss carryback.

Key sections of Form 1120-A: Part I reported all income including gross receipts, dividends, interest, and rents. Part II listed ordinary deductions for salaries, repairs, bad debts, taxes, interest, and depreciation. Part III computed total tax liability after estimated payments. Part IV required a balance sheet for corporations with total assets of $25,000 or more.

Due date for tax year 2006: March 15, 2007 for calendar-year corporations. A six-month extension was available by filing Form 7004 before the original deadline.

Form 1120-A vs. Form 1120: Form 1120-A was limited to corporations with revenue under $500,000 and covered only domestic income. Form 1120 accepts all C corporations with no revenue cap and supports foreign income, controlled group filings, and net operating loss carrybacks. Both forms share the same underlying tax rate structure, but Form 1120 includes significantly more schedules and detail. Because the IRS eliminated Form 1120-A after 2006, all C corporations filing for current tax years use Form 1120 regardless of size or revenue.

Question	Answer
Form Name	1120A Form
Form Length	2 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	30 sec
Other names	irs form 1120a, 1120 a, 1120 a form, 1120 c corp

Form Preview Example

Form1120-A

U.S. Corporation Short-Form Income Tax Return

OMB No. 1545-0890

2006

Department of the Treasury

For calendar year 2006 or tax year beginning

, 2006, ending

, 20

▶ See separate instructions to make sure the corporation qualifies to file Form 1120-A.

Internal Revenue Service

Name

B Employer identification number

A Check this box if the

Use IRS

label.

corporation is a

Number, street, and room or suite no. If a P.O. box, see instructions.

C Date incorporated

Otherwise,

personal service

print or

corporation (see

instructions)

type.

City or town, state, and ZIP code

D Total assets (see instructions)

E Check if:

(1)

Initial return

(2)

Final return

(3)

Name change

(4)

Address change

F Check accounting method:

(1)

Cash

(2)

Accrual

(3)

Other (specify)

▶

Income

(See instructions for Deductions limitations on deductions.)

Tax and Payments

1a	Gross receipts or sales			b Less returns and allowances						c Balance ▶		1c
2	Cost of goods sold (see instructions)											2
3	Gross profit. Subtract line 2 from line 1c											3
4	Domestic corporation dividends subject to the 70% deduction											4
5	Interest											5
6	Gross rents											6
7	Gross royalties											7
8	Capital gain net income (attach Schedule D (Form 1120))											8
9	Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)											9
10	Other income (see instructions—attach schedule)											10
11	Total income. Add lines 3 through 10										▶	11
12	Compensation of officers (see instructions)											12
13	Salaries and wages (less employment credits)											13
14	Repairs and maintenance											14
15	Bad debts											15
16	Rents											16
17	Taxes and licenses											17
18	Interest											18
19	Charitable contributions											19
20	Depreciation from Form 4562 not claimed elsewhere on return (attach Form 4562)											20
21	Domestic production activities deduction (attach Form 8903)											21
22	Other deductions (attach schedule)											22
23	Total deductions. Add lines 12 through 22										▶	23
24	Taxable income before net operating loss deduction and special deductions. Subtract line 23 from line 11											24
25	Less:	a Net operating loss deduction (see instructions)						25a
25	Less:	a Net operating loss deduction (see instructions)						25a
		b Special deductions (see instructions)						25b				25c
26	Taxable income. Subtract line 25c from line 24											26
27	Total tax (page 2, Part I, line 5)											27
28 a	2005 overpayment credited to 2006			28a
b	2006 estimated tax payments			28b
c	2006 refund applied for on Form 4466			28c	(	)	Bal ▶	28d
e	Tax deposited with Form 7004							28e
f	Credits:	(1) Form 2439	(2) Form 4136					28f
f	Credits:	(1) Form 2439	(2) Form 4136					28f
g	Credit for federal telephone excise tax (attach Form 8913)											28g
h	Total payments. Add lines 28d through 28g											28h
29	Estimated tax penalty (see instructions). Check if Form 2220 is attached									▶		29
30	Amount owed. If line 28h is smaller than the total of lines 27 and 29, enter amount owed											30
31	Overpayment. If line 28h is larger than the total of lines 27 and 29, enter amount overpaid											31
32	Enter amount from line 31 you want: Credited to 2007 estimated tax ▶								Refunded ▶			32
32									Refunded ▶			32

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

				May the IRS discuss this return
				with the preparer shown below
				(see instructions)?	Yes	No
▶ Signature of officer		▶		(see instructions)?	Yes	No
▶ Signature of officer	Date	▶	Title

Paid	Preparer’s		Date		Check if		Preparer’s SSN or PTIN
	Preparer’s
	signature ▶
Preparer’s	signature ▶				self-employed
Preparer’s	Firm’s name (or	▶				EIN
	Firm’s name (or
Use Only
Use Only	address, and ZIP code					Phone no. (	)
	yours if self-employed),
For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.				Cat. No. 11456E			Form 1120-A (2006)

Form 1120-A (2006)		Page 2

Part I	Tax Computation (see instructions)

1	Income tax. If the corporation is a qualified personal service corporation (see instructions), check here		▶
2	General business credit. Check box(es) and indicate which forms are attached:
	Form 3800	Form(s) (specify) ▶

3	Subtract line 2 from line 1
4	Other taxes. Check if from:	Form 4255	Form 8611	Form 8697	Form 8866	Form 8902
	Other (attach schedule)

5Total tax. Add lines 3 and 4. Enter here and on page 1, line 27

Part II Other Information (see instructions)

1See instructions and enter the: a Business activity code no. ▶ b Business activity ▶

c Product or service ▶

2At the end of the tax year, did any individual, partnership, estate, or trust own, directly or indirectly, 50% or more of the corporation’s voting stock? (For rules of attribution, see section

267(c).)

Yes

If “Yes,” attach a schedule showing name and identifying number.

3Enter the amount of tax-exempt interest received or accrued

during the tax year

▶

4Enter total amount of cash distributions and the book value of property distributions (other than cash) made during the tax

year

▶

Part III Balance Sheets per Books

		1	Cash
		2a	Trade notes and accounts receivable
		b	Less allowance for bad debts
		3	Inventories
		4	U.S. government obligations
	Assets	5	Tax-exempt securities (see instructions)
	Assets	6	Other current assets (attach schedule)
		6	Other current assets (attach schedule)
		7	Loans to shareholders
		8	Mortgage and real estate loans
		9a	Depreciable, depletable, and intangible assets
		b	Less accumulated depreciation, depletion, and amortization
		10	Land (net of any amortization)
		11	Other assets (attach schedule)
		12	Total assets
		13	Accounts payable
	Shareholders’Equity	14	Other current liabilities (attach schedule)
Liabilitiesand		15	Loans from shareholders
		16	Mortgages, notes, bonds payable
		17	Other liabilities (attach schedule)
		17	Other liabilities (attach schedule)
		18	Capital stock (preferred and common stock)
		19	Additional paid-in capital
		20	Retained earnings
		21	Adjustments to shareholders’ equity (attach schedule)
		22	Less cost of treasury stock
		23	Total liabilities and shareholders’ equity

5a If an amount is entered on page 1, line 2, enter from worksheet in instructions:

(1)Purchases

(2)Additional 263A costs (attach schedule)

(3)Other costs (attach schedule)

bIf property is produced or acquired for resale, do the rules of section

263A apply to the corporation?

Yes

6At any time during the calendar year, did the corporation have an interest in or a signature or other authority over a financial account (such as a bank account, securities

account, or other financial account) in a foreign country?

Yes

If “Yes,” the corporation may have to file Form TD F 90-22.1. If “Yes,” enter the name of the foreign country ▶

7Are the corporation’s total receipts (line 1a plus lines 4 through 10 on page 1) for the tax year and its total assets at the end of the tax

year less than $250,000?

Yes

If “Yes,” the corporation is not required to complete Parts III and IV below.

(a) Beginning of tax year

(b) End of tax year

(

)

(

)

(

)

(

)

(

)

(

)

Part IV Reconciliation of Income (Loss) per Books With Income per Return

1Net income (loss) per books

2 Federal income tax per books

3 Excess of capital losses over capital gains

4 Income subject to tax not recorded on books this year (itemize):

5 Expenses recorded on books this year not deducted on this return (itemize):

6 Income recorded on books this year not included on this return (itemize):

7 Deductions on this return not charged against book income this year (itemize):

8 Income (page 1, line 24). Enter the sum of lines 1 through 5 less the sum of lines 6 and 7

Form 1120-A (2006)

How to Edit 1120A Form Online for Free

Filling out IRS Form 1120-A takes just a few steps using FormsPal's free online PDF editor. No software download is required. Open the form in your browser and complete each part in order.

How to Edit IRS Form 1120-A Online for Free

Step 1: Open the Form

Click the "Get Form" button at the top of this page to open Form 1120-A in the FormsPal editor. The form loads directly in your browser.

Step 2: Enter Corporate Identification

Fill in your corporation's legal name, address, employer identification number (EIN), and the applicable tax year at the top of the form. Verify the EIN matches IRS records before continuing. An incorrect EIN is one of the most common errors on Form 1120-A and can delay processing.

Step 3: Report Income and Deductions

Complete Part I by entering gross receipts (before returns and allowances), cost of goods sold, dividends, interest, rents, and other income. Then complete Part II with all applicable deductions. Enter officer compensation in the designated schedule. Total income minus total deductions equals taxable income before special deductions.

Completing income and deductions sections of irs form 1120a

Step 4: Compute the Tax

Part III applies the corporate income tax rate to taxable income and calculates total tax due. Subtract any credits and prior estimated tax payments. The result is the balance due or overpayment. Corporations that overpaid may apply the credit to the next tax year or request a refund.

Tax computation section of irs form 1120a

Step 5: Complete the Balance Sheet

Corporations with total assets of $25,000 or more must complete Part IV, the balance sheet per the books. Enter beginning-of-year and end-of-year figures for assets, liabilities, and shareholders' equity. Corporations below the $25,000 threshold may leave this section blank.

Step 6: Review and Download

Review the completed form for accuracy. Confirm all figures match your corporate records and that officer compensation is fully reported. Click "Done" to finalize, then download the PDF. Sign up for a free 7-day FormsPal trial to save and retrieve your completed forms at any time.

Common Mistakes When Filing Form 1120-A

Incorrect EIN. The employer identification number must exactly match IRS records to avoid processing delays.
Missing officer compensation schedule. All officers who received salary during the year must be reported in Schedule E.
Skipping the balance sheet. Corporations with total assets at or above $25,000 must complete Part IV.
Misreporting gross receipts. Gross receipts must be entered before returns and allowances, which are subtracted on a separate line.
Filing when ineligible. Corporations that did not meet all eligibility criteria were required to file Form 1120, not Form 1120-A.

Frequently Asked Questions About Form 1120-A

Is Form 1120-A still accepted by the IRS?

No. The IRS discontinued Form 1120-A after the 2006 tax year. All C corporations filing for 2007 and later must use Form 1120. The 2006 version is available here for reference or amended return purposes.

What replaced Form 1120-A?

Form 1120 replaced Form 1120-A for all C corporations starting with the 2007 tax year. The full Form 1120 is longer and includes additional schedules, but it accepts filings from corporations of any size.

Can I amend a previously filed Form 1120-A?

Yes. To correct a previously filed Form 1120-A for the 2006 tax year, file the original form with Form 1120-X, the Amended U.S. Corporation Income Tax Return, to report the correction.

What was the penalty for filing Form 1120-A late?

For tax year 2006, the IRS charged a failure-to-file penalty of 5% of unpaid tax per month, up to 25%. A minimum penalty applied when the return was more than 60 days late. Filing Form 7004 for an extension before the deadline avoided this penalty if tax owed was paid on time.