Who this is for
- C corporations filing Form 1120
- S corporations filing Form 1120-S and issuing Schedule K-1s to shareholders
- Owner-operated corporations whose books are kept monthly, by GHL or by the business
- Corporations filing in one or more states
Business tax returns: Forms 1120 and 1120‑S
GHL prepares Form 1120 for C corporations and Form 1120‑S for S corporations, along with their state returns, from the company’s year-end books. For an S corporation, GHL also prepares a Schedule K‑1 for each shareholder, and the return shows how depreciation and officer compensation tie back to those books.
The work begins with the prior-year return, the current books, and any change in ownership or activity during the year. When the books need monthly bookkeeping or a cleanup first, or an earlier year needs an amended return, GHL scopes that as its own work alongside the return.
Compare return typesThe Service
Who it’s for, and what GHL handles
Return preparation starts from books that are complete for the year. Keeping those books, or bringing them up to date, is bookkeeping, which GHL scopes as its own work.
Included in this work
- Form 1120 or Form 1120-S and the related federal schedules
- State corporate or franchise returns where the business files
- Book-to-tax reconciliation from the year-end books
- Depreciation of the business's fixed assets
- A Schedule K-1 for each shareholder of an S corporation
- A review of the officer compensation reported on the return
Arranged separately
- Monthly bookkeeping
- Books cleanup or catch-up before preparation
- Payroll processing and payroll filings
- Amended returns and responses to notices
- Entity and election planning
How Preparation Works
From the first conversation to the filed return
- 01Intake
An inquiry, then a conversation about the return: the entity type, the states where the business files, and what changed this year. Documents come later, through the Secure Client Portal.
- 02Prior return and filing context
Last year's corporate returns show depreciation schedules, carryovers, and how items were reported before.
- 03Records review and open questions
GHL reviews the year-end books, reconciliations, and payroll records, and lists what is missing or unclear before preparation starts.
- 04Preparation and review
The return and any shareholder K-1s are prepared from the books, then reviewed before they go to the owner.
- 05Filing authorization and delivery
An officer of the corporation reviews the finished return and signs the e-file authorization. GHL files it and delivers a copy for the records.
Worth Knowing
Issues that commonly affect business returns
What reaches the owner's return
An S corporation's income passes through to its shareholders on Schedule K-1, so the corporation's return and each owner's Form 1040 have to agree.
Officer compensation
The IRS expects an S corporation officer who works in the business to be paid reasonable compensation as wages, so officer pay is reviewed alongside the return.
The books and the return
Some items, such as depreciation and business meals, are treated differently for the books and for tax, and the return reconciles the two.
Shareholder basis
A shareholder's stock and debt basis decides how losses and distributions reach the owner's return, and it carries from one year to the next.
Scope And Fees
What affects scope and fees
The scope is reviewed before work begins, and the fee follows from it.
- C corporation or S corporation, and the number of shareholders
- The number of states where the business files
- Whether the books are closed and reconciled at year end
- Fixed assets, depreciation, and asset sales during the year
- Payroll, contractor, and officer compensation records
- Notices, amended information, or research outside the original scope
Records To Gather
What to gather
An engagement begins after the first conversation with GHL. This list helps you get ready for it.
- Prior-year federal and state corporate returns
- Year-end profit and loss statement and balance sheet
- Bank and credit-card statements and reconciliations
- Payroll filings and officer compensation
- Fixed-asset purchases and sales
- Shareholder contributions, distributions, and loans
Who does the work
- Corinne Shipman, MBA, MSM, leads GHL's tax and trust practice and has more than 12 years of tax experience.
- GHL prepares returns for individuals, businesses, partnerships, and trusts, including Form 1041.
- Corinne works with clients in English, Spanish, and French.
- Clients send their documents through the Secure Client Portal.
Common Questions
Business tax returns FAQs
Is bookkeeping part of return preparation?
Return preparation starts from books that are complete for the year. When the books need monthly bookkeeping or a catch-up first, GHL does that as bookkeeping, scoped as its own work.
Does GHL prepare the shareholders' K-1s?
Yes. For an S corporation, GHL prepares a Schedule K-1 for each shareholder with the return.
Can GHL prepare the owner's personal return too?
Yes. GHL prepares Form 1040 as well, which keeps each owner's K-1 and personal return consistent with each other.
What happens with an IRS or state notice?
GHL reviews the notice alongside the return it concerns. A response to a notice is scoped as its own work, apart from the year's preparation.