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Iowa Free Printable IA 1120S Instructions, 42-005 for 2024 Iowa Form IA 1120S/K-1 Instructions

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Form IA 1120S/K-1 Instructions
IA 1120S Instructions, 42-005

2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions What’s New for Tax Year 2023 • S corporations may make a Pass-Through Entity Tax (PTET) election to be subject to tax at the entity level. See the instructions below for Part 6 for more information. • S corporations that make a PTET election for a tax year beginning after May 10, 2023, are subject to the requirement to make estimated payments. • A new Schedule C has been added to report payments made by the S corporation for the tax year. • The Business Activity Ratio (BAR) schedule has been re-lettered as Schedule E. All S corporations are required to complete Schedule E, even if all of its business is conducted in Iowa. Several new lines (1a-1h) have been added to Schedule E. These new lines break out, by income type, the gross receipts line that appeared on this schedule in prior years. • Taxpayers now have the ability on this return to authorize an individual to receive information about this return. See the instructions below for Third Party Disclosure Designee for more information. • The person who signs this return on behalf of the taxpayer must now attest that they have authority to act on behalf of the taxpayer in tax matters. This attestation will give the signer full authority to interact with the Department on behalf of the taxpayer without the need to file an additional Representative Certification form. See the instructions below for Authorized Signer for more information. • Due to legislative changes that took effect January 1, 2023, several adjustments that were previously required or allowed on Schedule A have been repealed. These lines have been removed from the schedule and reserved for future use. See the instructions below for Schedule A for more information. Who Must File Every S corporation doing business in Iowa or deriving income or loss from real, tangible, or intangible property located or having a situs in Iowa must file an Iowa Income Tax Return for S Corporation, IA 1120S. The IA 1120S must also be used by interest charge domestic international sales corporations and foreign sales corporations. If the S corporation is a financial institution, it must also file an IA 1120F. tax.iowa.gov Note: Only S corporations with activity (income or loss) from Iowa sources as described above, or which have a commercial domicile in Iowa, are required to file. An S corporation should not file if its only connection to Iowa is because one or more shareholders are Iowa residents. What Must be Filed To be considered a complete return and not subject to late filing penalties, all of the following must be timely filed with the Department: • An annual Iowa Income Tax Return for S corporation (IA 1120S) including all required schedules and attachments. • An IA 1120S Schedule K-1 for each person who was a shareholder at any time during the taxable year. • A copy of the federal S corporation 1120-S return and all supporting schedules, not including federal Schedules K-1. Time and Place for Filing The Iowa S corporation return must be filed on or before the last day of the fourth month following the close of the S corporation’s tax year. For calendar year filers, the due date is April 30, 2024. If the S corporation is required to file a short period return consisting of fewer than 12 months, the Iowa short period return is due 45 days after the due date of the federal short period return. Every S corporation that owes no tax and does not file by the original due date automatically receives a 6month extension of time to file after the original due date, provided the return is filed within that 6month period. No extension request form is required. If the S corporation is making the PTET election (see Part 6 below) or owes tax on built-in gains or passive investment income (see Part 5 below), a 6-month automatic extension will be granted only if at least 90% of that total tax liability is paid by the original due date of the return. Latefiled returns are subject to penalty. For more information, see the instructions for Part 8, lines 47 and 48 below. Mandatory Electronic Filing For tax years ending on or after December 31, 2022, an S corporation must file its annual return with the Department electronically using the federal modernized e-file system (MeF) if it meets any one of the following conditions for the tax year: 42-005a (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 2 • The S corporation has $250,000 or more in total gross receipts. • The S corporation is required to provide 10 or more IA 1120S Schedules K-1 to shareholders. • The S corporation is reporting $25,000 or more in Iowa tax credits on Schedule B of its Iowa S corporation return. See Iowa Administrative Code rule 701—8.7 for definitions and other important information about the electronic filing requirement. All S corporations are encouraged to file electronically. If an S corporation return is subject to the electronic filing requirement, but it is filed in another manner, it is not considered a valid return unless the Department provides an exception to the electronic filing requirement. Mail paper returns to: Corporation Tax Return Processing Iowa Department of Revenue PO Box 10468 Hoover State Office Building Des Moines Iowa 50306-046 OTHER IMPORTANT INFORMATION Conformity with the Internal Revenue Code (IRC) For tax years beginning on or after January 1, 2020, Iowa has adopted rolling conformity, meaning the state will automatically conform to any changes made to the IRC, except as specified by Iowa law. Composite Filing Iowa Code section 422.16B imposes composite return filing and tax remittance obligations on S corporations for tax years beginning on or after January 1, 2022. An S corporation with nonresident shareholders is required to file an IA PTE-C Iowa Composite Return and remit Iowa income or franchise tax on behalf of its nonresident shareholders, unless the S corporation makes a timely PTET election for the same tax year or meets one of the composite return filing exemptions described in Iowa Administrative Code rule 701–405.5(1). A nonresident shareholder is any shareholder who is a nonresident individual; an estate or trust without a situs in Iowa; or a corporation, partnership, or other business entity without a commercial domicile in Iowa. For more information, see the instructions for Part 3 below and the IA PTE-C Iowa Composite Return. The IA 1040C has been discontinued for any S corporation tax year that begins on or after January 1, 2022. Disregarded Entities An S corporation that owns 100% of an entity that is disregarded as a separate entity for federal income tax purposes must report the activities of that disregarded entity on its Iowa S corporation return, and must include an IA Schedule DE Iowa Disregarded Entity Schedule with its return. Iowa Resident Out-of-State Tax Credit Iowa Code section 422.8 and Iowa Administrative Code rule 701—304.6 allow Iowa residents to claim the Iowa Out-of-State Tax Credit for certain entity-level income taxes paid by an S corporation to another state, local jurisdiction, or foreign country on income also subject to tax in Iowa only if the resident shareholder receives a qualifying supplemental schedule from the S corporation reporting certain information. If the S corporation paid entity-level income tax (including composite return income tax, but not including withholding tax) to another qualifying jurisdiction on the distributive share of the resident shareholder’s income also subject to tax in Iowa, the S corporation must provide a qualifying supplemental schedule identifying the jurisdiction to which the income tax was paid, the passthrough entity that paid the income tax, and the shareholder’s pro-rata share of the income, tax liability, and tax paid in that jurisdiction. A shareholder will not be permitted to claim an Outof-State Tax Credit on the IA 130 for that income tax unless the shareholder receives that qualifying supplemental schedule from the S corporation and submits a copy with the IA 1040. If the S corporation is itself an owner of another pass-through entity that paid entity-level income tax to another qualifying jurisdiction on income also subject to tax in Iowa, and the S corporation receives a qualifying supplemental schedule from that pass-through entity, the S corporation may in turn report that income tax to its shareholders on a qualifying supplemental schedule with the shareholder’s IA Schedule K-1. When reporting this other pass-through entity’s income tax to its shareholders, the S corporation must reduce the 42-005b (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 3 below. income tax by the amount of any credit available from that other jurisdiction to the S corporation S corporations may also receive composite related to the income tax payment. The S credits from another pass-through entity for Iowa corporation may not report this tax to its income tax paid on behalf of the S corporation, or shareholders as described above if the S PTET credits for entity-level Iowa income tax paid corporation does not receive the qualifying by the pass-through entity. These credits are not supplemental schedule from the other passreported on Schedule B and allocated to through entity. shareholders, but instead must be claimed by the The S corporation should keep the schedule it received from the other pass-through entity because the Department may request it of the resident shareholder in order to prove the credit claimed on the IA 130. The resident shareholder is responsible for providing documentation of the out-of-state tax paid by a pass-through entity at the Department’s request Example: Partnership X earns $2,000 of income in State A, which imposes an entity-level income tax directly on the partnership. Partnership X pays $100 of income tax to State A. Partnership X is owned 50% by S corporation Y, and provides a schedule to S corporation Y indicating that Y’s prorata share of the income taxed by State A is $1,000, and Y’s pro-rata share of the income tax imposed by and paid to State A is $50. S corporation Y does not receive a credit in State A for its share of the tax paid by Partnership X. S corporation Y is owned 50% by individual Z, a resident of Iowa. S corporation Y provides a schedule to individual Z indicating that Z’s pro-rata share of Partnership X’s income taxed by State A is $500, and Z’s pro-rata share of Partnership X’s income tax imposed by and paid to State A is $25. Individual Z may use the income and tax amounts reported on that schedule in completing Z’s IA 130 Iowa Out-of-State Tax Credit Schedule, provided that the $500 of income identified on the schedule is also reported on individual Z’s IA 1040 return and is taxed by Iowa. Tax Credits S corporations may earn various tax credits or receive tax credits passed through to them from another pass-through entity. These tax credits must be reported on Schedule B of the IA 1120S and are then allocated to shareholders on the IA Schedule K-1. Shareholders cannot claim these allocated tax credits until the S corporation has filed an S corporation return that properly reports the available tax credits on Schedule B. For more information, see the instructions for Schedule B S corporation on Part 8, line 43 of this return, or on the IA PTE-C. Amended Returns If an amended federal return was filed, or if other errors are discovered on the Iowa return, the taxpayer must file an amended Iowa S corporation return, IA 1120S, check the “Amended Return” box and include the IA 102 Amended Return Schedule, as well as the other required supporting documentation. If the S corporation was required to file its original return electronically, the S corporation’s amended Iowa return for the same tax year must be filed electronically. Federal Centralized Partnership Audit Regime For tax years 2018 and forward, the IRS makes audit adjustments and generally collects taxes at the partnership level for partnerships subject to the federal centralized partnership audit regime. If the S corporation was a direct or indirect partner in a partnership that is audited by the IRS resulting in adjustments that affect Iowa tax liability, the S corporation must follow certain procedures and timelines for reporting those adjustments to Iowa, even if the S corporation or shareholders were not responsible for filing a federal amended return or paying additional federal tax. Similar procedures and timelines also apply to an affected partnership and its direct and indirect partners for amendments to returns requested on a centralized administrative adjustment request (AAR). For more information, see tax.iowa.gov/reporting-federal-income-taxchanges-iowa and Iowa Code section 422.25A. Iowa Pass-Through Entity Audits For tax year 2020 and forward, any audit of an S corporation by the Department will be conducted solely at the S corporation level through the entity’s Iowa pass-through representative. If an S corporation is audited by the Department resulting in adjustments to Iowa tax liability, the S corporation and its owners must follow certain 42-005c (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 4 Part 2: Pass-Through Representative (PTR) procedures and timelines for reporting the adjustments to Iowa and paying any resulting Enter the required information about the person the S corporation is appointing as its Iowa passIowa tax. For more information, see Iowa Code through representative (PTR) for the tax year. sections 422.25B and 422.25C. These provisions may be applied to a tax year prior to 2020 if the An S corporation is required to have an Iowa PTR Department, the pass-through entity, and the for each tax year. There can be only one Iowa pass-through entity owners agree. PTR for each tax year. For Additional Information Contact Taxpayer Services at 515-281-3114 or 800-367-3388 8 a.m. - 4:30 p.m. CT or email [email protected] COMPLETING THE RETURN Calendar Year or Fiscal Year Enter tax period beginning and ending dates as MM/DD/YYYY. The Iowa S corporation return must be made on the same period basis as the S corporation accounts are required to be kept for federal tax purposes, even if shareholders report their income on a different year basis. Part 1: Corporation Name and Address • If the S corporation has a Federal Employer Identification Number (FEIN), it must be entered here. If the S corporation has applied for but not yet received a number, enter “applied” and inform the Department of the number once it is obtained. For information on obtaining an FEIN, contact the Internal Revenue Service (IRS) at 800-829-4933. • Enter the county number of the main Iowa location. S corporations without a physical location in Iowa should enter 00. A list of county numbers can be found on the Department website (tax.iowa.gov). • Enter the North American Industry Classification System (NAICS) Code for the specific industry group corresponding to the S corporation’s primary business activity. • Enter a one or two word description of the S corporation’s principal activity. • Enter the total number of shareholders, total number of Iowa resident shareholders, and total number of Iowa nonresident shareholders. A resident shareholder is any shareholder who is a resident individual; an estate or trust with a situs in Iowa; or a business entity with a commercial domicile in Iowa. Include a corresponding IA Schedule K-1 for each person who was a shareholder at any time during the tax year. An S corporation may appoint any qualifying person, including itself or a different entity, to be its Iowa PTR. If the S corporation appoints itself or another entity as its Iowa PTR, the S corporation is required to appoint a designated individual as the sole individual to act on behalf of the entity PTR. An Iowa PTR has the sole authority to act on behalf of the S corporation for the purpose of Iowa amended income tax returns, audits, examinations, and appeals. The S corporation and its shareholders are bound by the actions of the Iowa PTR. If the S corporation desires to change its Iowa PTR for the tax year at a later date, it must use the IA 8979 Iowa Pass-through Representative Appointment form, not an amended Iowa S corporation return. Part 3: Corporation Information Check the type of return and type of entity that is filing this return. Corporation Activities—Answer the questions about the corporation’s activities. Composite Return Requirement—Answer the three questions about the S corporation’s nonresident shareholders. If the answer is “No” to all three questions, the S corporation is not required to file an IA PTE-C Iowa Composite Return in addition to the IA 1120S. If the answer is “Yes” to either question “i” or “ii”, the S corporation is required to file an IA PTE-C and pay any composite tax due on behalf of its nonresident shareholders, unless the S corporation is making a PTET election for the same tax year or satisfies one of the composite return filing exemptions described in Iowa Administrative Code rule 701–405.5(1). If the answer is “Yes” to question “iii”, the S corporation’s composite credit may be claimed on either the IA PTE-C return, or on this IA 1120S return. See the IA PTE-C for further information. 42-005d (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 5 in gains tax, except for certain installment sales Part 4: S Corporation Distributive Items for made during tax years 2016-2018 when Iowa Iowa Tax Purposes. used a 10-year recognition period. For more Lines 1-12: For each line, enter the amount from information on these installment sales, see the corresponding line of the S corporation’s tax.iowa.gov/built in-gains-tax-on-s-corp. federal 1120-S return. Line 14. Enter the separately stated section 179 deduction from the S corporation’s federal 1120S, Schedule K. Line 15: Enter the sum of the other separately stated deductions from the S corporation’s federal 1120-S return, Schedule K, line 12. However, do not include any amount that is only informational and not available as a current-year deduction to the shareholder. Line 18: Additions to S corporation income may be required under Iowa law. Enter the total Additions from IA 1120S, Schedule A, line 16. Line 19: Reductions to S corporation income may be allowed under Iowa law. Enter the total Reductions from IA 1120S, Schedule A, line 16. Line 22: If the S corporation has nonbusiness income, complete Schedule D. Enter the amount from Schedule D, line 17, on this line. Line 24: Enter the S corporation’s Business Activity Ratio (BAR) from the IA 1120S, Schedule E, line 13. Line 26: Enter the S corporation’s nonbusiness income allocated to Iowa from the Schedule D, line 8. Part 5: Built-In Gains or Passive Investment Income Tax S corporations that are subject to federal tax on built-in gains under Internal Revenue Code (IRC) section 1374 or passive investment income under IRC section 1375 are subject to Iowa corporation income tax on this income to the extent received from business carried on in this state or from sources in this state. Line 28: The starting point for computing the Iowa tax on built-in gains income is the amount of built-in gains income (including built-in gain carryforward amounts) calculated for federal tax purposes after considering the federal income limitation. Enter the S corporation’s net recognized built-in gains from its federal 1120-S return, Schedule D. Iowa is conformed to the federal 5-year recognition period for determining the Iowa built- Line 29: The starting point for computing the Iowa tax on passive investment income is the amount of excess net passive income calculated for federal tax purposes after considering the federal income limitation. Enter the S corporation’s excess net passive income from its federal 1120-S return, line 23a. Line 33: Any remaining Iowa net operating loss (NOL) carryforward arising from a tax year ending prior to January 1, 2023 for which the corporation was a C corporation is allowed as a deduction against the built-in gains and excess passive investment income to the extent the Iowa NOL carryforward period has not expired. Enter any remaining Iowa NOL carryforward amount on this line, and include a schedule documenting the corporation’s entitlement to such Iowa NOL. For purposes of determining the amount of any remaining Iowa NOL which may be carried forward to any future tax years, the amount of the net recognized built-in gain or excess net passive investment income is treated as taxable income. Line 34: Subtract line 33 from line 32. If the result is less than zero, enter zero. This is the corporation’s built-in gains and passive investment income subject to Iowa tax. Line 35: The amount of Iowa taxable built-in gains and passive investment income computed on line 34 is subject to Iowa tax at the same rates as C corporation income (5.5%, 8.4%). $100,000 or less, multiply by 5.5%. Over $100,000, multiply by 8.4% and subtract $2,900. If you are using this form to file for a short tax year that began in 2024, use the 2024 corporate income tax rates. Line 36: Any Iowa tax credit carryforward under Iowa Code section 422.33 arising in a taxable year for which the corporation was a C corporation is allowed against the gross tax on Iowa built-in gain and passive investment income computed on line 35, to the extent the Iowa tax credit’s carryforward period has not expired. Enter any remaining Iowa 42-005e (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 6 Part 7: Audit Election to Pay tax credit carryforward on this line, and include a Line 41: If you are filing an amended return to schedule documenting the corporation’s report changes from a federal centralized entitlement to such Iowa tax credit. partnership audit or an Iowa pass-through entity Line 37: Subtract line 36 from line 35. If the result audit, and you are making an irrevocable election is less than zero, enter zero. This is the to pay the tax, penalty, and interest resulting from corporation’s net Iowa tax on Iowa built-in gain and that audit on behalf of your shareholders, check passive investment income. the box above line 41 and complete the IA 103 Part 6: Pass-Through Entity Tax (PTET) Pass-Through Audit Election to Pay Schedule. Election Report the tax from the IA 103, line 26 on this line. If you are electing or have already elected to be Include the IA 103 with your amended return. subject to the entity level tax for this tax year When an election to pay on your shareholders’ pursuant to Iowa Code section 422.16C, check behalf is made, do not issue amended IA 1120S the box. This election is irrevocable and must be Schedules K-1 to your shareholders, but instead made by the due date for filing your return, notify the shareholder of all of the following in a including extensions. The election is valid only for separate letter or schedule: (1) identify the this tax year. shareholder’s distributive share of the audit Line 38: Multiply the amount on Part 4, line 27 adjustments, (2) notify the shareholder that you by 6% (.06). However, if you are using this return have elected to pay the resulting Iowa tax, to make a PTET election for a short tax year that penalty, and interest on their behalf, and (3) notify began in 2024, multiply the amount on Part 4, line the shareholder that the shareholder shall not 27 by 5.7% (.057). claim any deduction, credit, or refund for the Line 39: A financial institution subject to the Iowa amount paid by the S corporation, and the franchise tax that is organized as a pass-through shareholder may not include the amount paid on entity is eligible to claim a franchise tax credit the shareholder’s Iowa return in any manner. against the Iowa PTET. Enter the amount from S corporations may also make estimated your 2023 IA 1120F, line 14. If zero or less, enter payments of expected Iowa tax resulting from a zero. The entity must file and pay its franchise tax pending Internal Revenue Service (IRS) audit. A liability in order to claim this franchise tax credit federal audit estimate payment must be made against its Iowa PTET. through GovConnect.Iowa.gov. Line 40: Subtract line 39 from line 38. If zero or Part 8: Total Tax, Penalty, and Interest Due less, enter zero. This is the S corporation’s net Iowa PTET due. Line 43: Enter the amount of composite and Note about Iowa PTET credits. The S PTET credits received. Do not enter any credits corporation’s net Iowa PTET calculated on this that have been or will be claimed on an IA PTEline 40 is used to determine the total refundable C or IA 1120F. Include the IA Schedule CC with Iowa PTET credits available to shareholders, but your return. the amount must be reduced by the applicable Line 44: Enter the amount of payments from percentage before it is reported to shareholders Schedule C, line 4. on the Iowa Schedules K-1. The total available Iowa PTET credits equal the S corporation’s net Line 46: If payment is received after the payment Iowa PTET from line 40 x 94% (.94). However, if due date, interest accrues on the unpaid tax at a you are using this return to make a PTET election rate prescribed by law from the payment due date for a short tax year that began in 2024, the total until payment is received. Any portion of a month available PTET credits equal the S corporation’s is considered a full month in calculating interest net Iowa PTET from line 40 x 94.3% (.943). This due on unpaid tax. total available PTET credit amount is reported on Line 47: Enter your late payment penalties IA 1120S, Schedule K, line 19, column (d), and associated with the unpaid tax due. Pursuant to then allocated to each shareholder on the Iowa law under the audit election to pay, penalties Schedule K-1 in the same ratio that the S on the amount due by the S corporation will be corporation’s taxable income is allocated to the computed from the due date of the S shareholder. corporation’s original return without extension, 42-005f (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 7 section 421.27. Complete and submit a Penalty and shall be imposed as if the S corporation was Waiver Request form (78-629) to request a required to pay tax or show tax due on the original penalty be waived. return. S corporations subject to built-in gains or passive investment income tax, or who make the S corporations that do not owe Iowa tax on builtPTET election may be subject to the failure to in gains or passive investment income on line 37, timely pay penalty. The S corporation may be and that did not make the PTET election in Part subject to the following penalties: 6, but that file their IA 1120S return after the due Failure to Timely Pay the Tax Due: A penalty of 5% must be added to the unpaid tax if less than 90% of the correct amount of tax was paid by the original due date of the return. Multiply the unpaid tax due by 5% (.05) and enter that amount on line 47. This penalty is in addition to any penalty for failure to timely file, as described below on line 48. Audit or Examination Deficiency: A penalty of 5% will be added to the unpaid tax if the Department discovers an underpayment during an audit or examination. This penalty is in lieu of the failure to timely pay penalty described above, but is in addition to any penalty for failure to timely file described below on line 48. Fraud: A penalty of 75% will be added to the unpaid tax for fraudulent claims or willful failure to file a return. Waivers: Penalties can be waived under limited circumstances, as described in Iowa Code section 421.27. Complete and submit a Penalty Waiver Request form (78-629) to request a penalty be waived. Line 48: If the S corporation files its IA 1120S return after the due date, including extensions, and owes Iowa tax on built-in gains or passive investment income on line 35 or Iowa PTET on line 40, it may be subject to the following penalties: Failure to Timely File a Return: If the IA 1120S return is filed after the original due date of the return and less than 90% of the correct amount of Iowa tax was paid by the original due date, multiply the unpaid Iowa tax by 5% (.05) and enter that amount on line 48. This penalty is in addition to any penalty for failure to timely pay the tax due. Fraud: A penalty of 75% will be added to the unpaid tax for fraudulent claims or willful failure to file a return. Waivers: Penalties can be waived under limited circumstances, as described in Iowa Code date, including extensions, are subject to a late filing penalty. For more information, see Iowa Code section 421.27(1)(b) and Iowa Administrative Code rule 701—10.6(2). If you are filing your return late and do not owe Iowa tax on built-in gains or passive investment income (line 37) and did not make the PTET election, use the worksheet below to compute your imputed tax liability late filing penalty. Enter the result from line 6 of the worksheet on line 48. Imputed late filing penalty worksheet 1. Iowa-source S corporation distributive items from Part 4, line 27 ................. 1. _________ 2. Imputed Iowa tax for penalty purposes (multiply line 1 by 6% (.06)).... 2. _________ 3. Iowa tax credits from Schedule B............................. 3. _________ 4. Imputed Iowa tax liability for penalty purposes. Subtract line 3 from line 2. If less than $0, enter $0.......... 4. _________ 5. Multiply line 4 by 5% (.05). Enter the lesser of that amount or $25,000 ...... 5. _________ 6. Late filing penalty. Enter the greater of line 5 or $200 ................................... 6. _________ Line 49: If the S corporation owes Iowa tax on built-in gains or passive investment income, or made the PTET election for a tax year that began after May 10, 2023, use the IA 2220 to determine if the correct amount of estimated tax was paid by the due date. Enter any underpayment of estimated tax penalty on this line, and include the IA 2220 with the return Line 50: Payment options include payment through Modernized eFile (MeF), GovConnect.Iowa.gov, or payment by check. Go to the Department’s website for electronic payment options. Do not send cash. Submit a voucher if making a payment by check. Vouchers are available on GovConnect.Iowa.gov. 42-005g (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 8 the IA 4562A and IA 4562B. Include the IA 4562A Line 52: Enter the amount of overpayment to be and IA 4562B with your return. credited to the next tax period. This credit can only be changed after the due date of the return Line 7: Tax exempt interest and dividends – Add if the change is requested by the last day of the as an addition the amount of interest and dividends next tax year. from foreign securities and from securities of state Line 53: If you would like your refund directly deposited complete lines 53a, 53b, and 53c, otherwise a paper check will be issued. Do not input your direct deposit information if you have an amount due on line 50. 53a—Input your financial institution’s routing number. The routing number for an account must be nine digits. 53b—Check either checking or savings to indicate which type of account the refund will be deposited into. 53c—Input your account number. The account number for an account may have up to 17 digits. The entire refund amount will be deposited into this one account. The account the refund will be issued to must be located in the United States. Schedule A –Additions and Reductions Schedule A is used to document those modifications or adjustments to net federal Schedule K income/loss (IA 1120S, Part 4, line 17) that are required by Iowa Code section 422.35 and Iowa Administrative Code 701—chapter 502 to the extent applicable to S corporations. Additions to Iowa income are reported in the “Additions” column, and reductions to Iowa income are reported in the “Reductions” column. All entries on Schedule A must be reported as positive amounts. Line 4: Interest expense adjustments from IA 163 – Enter any addition or reduction to income from the interest expense adjustment from IA 163, line 6. Include the IA 163 with your return. Line 5: Qualifying Iowa COVID-19 grants – Subtract as a reduction any qualifying Iowa COVID-19 grant meeting the requirements of Iowa Administrative Code rule 701—502.30, to the extent such grant was included in the S corporation’s total federal Schedule K income reported on Part 4, line 13 of this return. Line 6: Expensing/depreciation adjustments from IA 4562A/B – IRC section 179 expensing and depreciation allowed on the Iowa return may differ from amounts allowed on the federal return. Enter any addition or reduction to income from and other political subdivisions that are exempt from federal income tax but not exempt from Iowa income tax. Exclude interest received from certain Iowa bonds, which are listed in Iowa Administrative Code rule 701—302.3. See also Iowa Administrative Code rule 701—502.6. Line 11: Federal securities interest and dividends – Subtract as a reduction the total interest received from federal securities such as U.S. Treasury bonds, notes, bills, and savings bonds included in federal S corporation income. Do not include interest on federal refunds. See Iowa Administrative Code rules 701—302.2 and 701—502.5. Line 12: Nonconformity adjustments from IA 101 – Certain current-year adjustments may be required because of Iowa’s nonconformity with federal law in tax years 2018 and 2019. Enter any addition or reduction to income from the IA 101. Include the IA 101 with your return. Line 13: Charitable contribution adjustment from Iowa credit – When an S corporation earns certain Iowa tax credits for making a charitable contribution, Iowa law prohibits a tax deduction related to that charitable contribution. Add as an addition any charitable contribution made by the S corporation and reported to its shareholders to the extent the charitable contribution relates to any of the following Iowa tax credits: the Iowa School Tuition Organization Tax Credit; the Iowa Charitable Conservation Contribution Tax Credit; the Endow Iowa Tax Credit; the Iowa Hoover Presidential Library Tax Credit; the Iowa Farm to Food Donation Tax Credit. Line 14: All-source PTE modifications from Iowa K-1s – If the S corporation is also a member of another pass-through entity (PTE) such as a partnership, estate, or trust, report the S corporation’s distributive share of all-source Iowa modifications furnished to the S corporation on its Iowa K-1. Report the Iowa modification as an Addition or a Reduction, as appropriate. Line 15: Other – Report any other adjustment to net federal Schedule K income/loss required 42-005h (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 9 under Iowa law. A detailed schedule describing • 05 Nonrefundable Historic Preservation Tax the type and amount must be included. Credit (include certificate number) Adjustments entered on this line may include, but • 06 Housing Investment Tax Credit (include are not limited to, the following: certificate number) • 07 Investment Tax Credit (include certificate • A reduction for wages paid to new employees number) who qualify as persons with disabilities or as • 08 New Jobs Tax Credit (include certificate ex-offenders. Iowa Code section 422.35(3), (4); number) (include IA 133 with return) Iowa Administrative Code rule 701—502.11. • 10 Renewable Energy Tax Credit (include • To the extent included in the S corporation’s net certificate number) federal schedule K income, subtract as a • 12 School Tuition Organization Tax Credit reduction the amount of a federal, state, or local (include certificate number) grant provided to a communications service • 13 Venture Capital – Fund of Funds Tax Credit provider during the tax year, if the grant (include certificate number) was used to install broadband service in • 14 Angel Investor Tax Credit FKA Venture targeted service areas at or above the Capital – Qualifying Business (include download and upload speeds. certificate number) (for amounts reported to • Adjustments to the S corporation’s net federal taxpayers other than individuals, estates, or Schedule K income/loss made by the Iowa trusts) Department of Revenue during an Iowa pass• 16 Wind Energy Production Tax Credit (include through audit, to the extent they are not certificate number) accounted for elsewhere on the Schedule A. If • 17 Agricultural Assets Transfer Tax Credit more than one adjustment is required, report (include certificate number) each adjustment separately. • 17 Beginning Farmer Tax Credit (include Do not include on line 15 any adjustment related certificate number) to the individual Iowa capital gain deduction (see • 20 Charitable Conservation Contribution Tax Iowa Administrative Code rule 701—302.87). If Credit (include federal form 8283 with return) you need to provide information to your • 21 Redevelopment Tax Credit (include shareholders about this individual shareholdercertificate number) level adjustment, do so on a supplemental • 22 Solar Energy System Tax Credit (include schedule with the Iowa Schedule K-1. certificate number) Schedule B – Iowa Tax Credits Reported to • 25 Innovation Fund Tax Credit (include Shareholders certificate number) Enter on Schedule B all the Iowa tax credits • 26 Farm to Food Donation Tax Credit (include earned or received by the S corporation in the IA 178 with return) current tax year that are being reported to the • 27 Workforce Housing Investment Tax Credit shareholders on the 2023 IA 1120S Schedules K(include certificate number) 1. Do not include composite credits, PTET credits, • 29 Hoover Presidential Library Tax Credit or credits for prior payments. The total amount of (include certificate number) each Iowa tax credit reported on Schedule B must • 30 Employer Child Care Tax Credit (include equal the aggregate amounts reported to your certificate number and IA 8882 with return) shareholders on the IA Schedules K-1, Part IV. • 46 Nonrefundable Third Party Developer Tax Report tax credits earned by the S corporation Credit (include certificate number) separately from tax credits received by the S • 47 Nonrefundable Third Party Developer Tax corporation from another pass-through entity. Credit for racks, shelving, and conveyor Include the tax credit certificate number if equipment (include certificate number) applicable. Use the following Iowa tax credit • 52 Biodiesel Blended Fuel Tax Credit (include codes: IA 8864 with return) • 55 E85 Gasoline Promotion Tax Credit • 03 Endow Iowa Tax Credit (include certificate (include IA 135 with return) number) 42-005i (11/03/2023) • • • • • • • • • • • 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 10 Schedule E – Business Activity Ratio (BAR) 56 Refundable Historic Preservation Tax Complete all applicable lines, even if 100% of the Credit (include certificate number) S corporation’s business is conducted in Iowa. All 58 Research Activities Tax Credit (include IA figures are net of amounts reported on Iowa 128 or IA 128S with return) Schedule D. 59 Supplemental Research Activities Tax Business income means income which arises from Credit (include certificate number) (include IA the S corporation’s trade or business, a part of 128 or IA 128S with return) which is conducted within Iowa. Business income 62 Refundable Third Party Developer Tax must be apportioned to Iowa by means of the BAR. Credit (include certificate number) 64 Ethanol Promotion Tax Credit (only The BAR must be computed to the nearest tenamounts received from a fiscal-year passthousandth of a percent. For example, 0.1234505 through entity from tax year 2020) becomes 12.3451%. 65 E15 Plus Gasoline Promotion Tax Credit Line 1a: Gross receipts from sale of tangible (Include IA 138 with return) personal property - Include all gross receipts 67 Refundable Redevelopment Tax Credit after returns and allowances as reported on the (include certificate number) federal form 1120S from the sale of tangible 68 Angel Investor Tax Credit FKA Venture personal property. See Iowa Administrative Code Capital – Qualifying Business (include rule 701—-503.5 for more information on certificate number) (for amounts reported to sourcing receipts from the manufacture or sale of individuals, estates, or trusts) tangible personal property. 69 Renewable Chemical Production Tax Credit Line 1b: Gross receipts from performance of (include certificate number) services - Include all gross receipts after returns 97 Refundable Third Party Developer Tax and allowances as reported on the federal form Credit for racks, shelving, and conveyor 1120S from the performance of services. See equipment (include certificate number) Iowa Administrative Code rules 701—503.6(1), 4136 Iowa Fuel Tax Credit (include IA 4136 701—503.6(2), and 701—503.6(4) for more with return) information on sourcing receipts from Schedule C- Payments Line 1(a): Enter the total amount applied to your 2023 Iowa S corporation tax from your previous IA 1120S Iowa Income Tax Return of S Corporation. Line 1(b)-(f): Enter the total amount of estimated or other voucher payments made for tax year 2023 prior to the original due date of the IA 1120S return. S corporations that owe more than $1,000 of net Iowa tax on built-in gains and passive investment income (line 37) or net Iowa PTET (line 40) are required to pay estimated tax. Estimated tax payments are not required for tax due pursuant to an election to pay on line 41. Visit GovConnect.Iowa.gov to make estimated or other payments or to print payment vouchers. Note: S corporations that make the PTET election for a tax year beginning on or before May 10, 2023 are not required to make estimated payments on the PTET due. performance of services. Line 1c: Gross receipts from railroad, trucking, aviation, or other aviation activities - Include all gross receipts after returns and allowances as reported on the federal form 1120S from the performance of railroad operations, transportations operations of an airline, truck and bus line companies, water transportation companies, freight car and equipment, oil, gasoline, gas or other pipeline operations. See Iowa Administrative Code rules 701—503.7(1), 701—503.7(2), and 701— 503.7(3) for more information on sourcing receipts from performance of transportation activities. Line 1d: Gross receipts from telecommunication services - Include all gross receipts after returns and allowances as reported on the federal form 1120S from telecommunication operations. See Iowa Administrative Code rule 701—503.7(4) for more information on sourcing receipts from telecommunication services. 42-005j (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 11 regularly in or outside of Iowa. The investment Line 1e: Gross receipts from radio and income must be included in Column A (numerator) television broadcasts - Include all gross to the extent the intangible property which receipts after returns and allowances as reported produced that income is an integral part of some on the federal form 1120S from radio and business activity occurring regularly in Iowa. television broadcasting operations. See Iowa Code section 422.33(2)(e) and Iowa All other investment income that is business Administrative Code rule 701—503.7(5) for more income may, at the taxpayer’s election, be information on sourcing receipts from included in the computation of the BAR. On the broadcasting operations. return, the taxpayer elects whether to include Line 1f: Gross receipts from printed and investment income which is determined to be electronic media - Include all gross receipts after business income in the computation of the BAR returns and allowances as reported on the federal for that year and all subsequent years. If elected form 11120S from printed and electronic media. to be included, then for that year and for See Iowa Administrative Code rule 701— subsequent years total investment income which 503.7(6) for more information on sourcing is determined to be business income will be receipts from printed and electronic media. Included in the numerator as follows (see Iowa Line 1g: Gross receipts from utilities services Administrative Code rule 701—503.2(3) for - Include all gross receipts after returns and clarification): allowances as reported on the federal form 1120S • Accounts receivable interest is to be included from utilities services. See Iowa Administrative in Column A (numerator) to the extent allocable Code rule 701—503.7(7) and 701—503.7(8) for to Iowa. more information on sourcing receipts from • Capital and ordinary gains or losses, or rent utilities services. and royalties from tangible property or real Line 1h: Gross receipts from financial property must be included in Column A activities - Include all gross receipts after returns (numerator) for property located in Iowa. and allowances as reported on the federal form • Other investment income including interest, 1120S from financial activities. See Iowa dividends, capital and ordinary gains, and Administrative Code rule 701—503.6(3) for more royalties from intangibles must be included in information on sourcing receipts from financial Column A (numerator) if the commercial activities. domicile is in Iowa. Line 10: Partnership gross receipts – When For an S corporation first doing business in Iowa, reporting gross receipts from another the election to include or exclude eligible partnership, include a schedule detailing the investment income determined to be business partnership name, partnership FEIN, share of income in the BAR of that year’s initial return is partnership Iowa receipts (Column A), and share binding on all subsequent years’ returns. The of partnership everywhere receipts (Column B) election to include or exclude business for each partnership reported on this line. investment income in the BAR can later be Line 11: Other – Include a schedule detailing the changed only with permission of the Director of type and amount of other income included on this line. the Iowa Department of Revenue. See Iowa Administrative Code rule 701—503.2 for Apportionment guidelines: For more additional information about the election and the information about allocation and apportionment apportionment of investment income. of Iowa income, see Iowa Code section 422.33(2) and Iowa Administrative Code 701—Chapter Iowa Schedule K – Distributive Share Items 503. The Iowa Schedule K is a summary schedule of all the shareholders’ shares of the S corporation’s Investment business income: All investment income, deductions, and Iowa adjustments, and income that is business income, including capital how those amounts are allocated and gains or losses, must be included in the apportioned within and without Iowa. The Iowa computation of the BAR if the investment income is Schedule K also provides a summary of the Iowa derived from intangible property that has become composite tax paid for nonresident shareholders an integral part of some business activity occurring 42-005k (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 12 Third Party Disclosure Designee with the S corporation’s IA PTE-C Iowa If the taxpayer would like to designate an Composite Return, or the Iowa PTET credits individual to discuss this return with the reportable to shareholders. Department, complete this section with that Column (a) Federal/All-source amount: In individual’s information. Column (a), lines 1-14 enter the amount from the An individual listed in this section will be able to corresponding line of the S corporation’s federal discuss and receive information from the 1120-S Schedule K. In Column (a), line 15 “Other Department about this return. This authorization deductions”, enter the sum of the other separately is specific to the S corporation income tax return stated deductions from the federal Schedule K, for this tax year. If the taxpayer wishes to have line 12d. However, do not include any amount this individual represent the taxpayer on other that is only informational and not available as a matters, or for other tax years, the taxpayer must current-year deduction to the shareholder. submit an IA 8821 Tax Information Disclosure For Column (a), line 16 “Iowa modifications”, Designation or IA 2848 Power of Attorney. enter the total net Iowa modifications reported on This authorization is limited to the ability to Part 4, line 20 of this return. discuss the return and receive return information Column (b) Amount subject to apportionment: from the Department. It does not authorize the For each line in Column (b), enter the amount individual to act on behalf of the taxpayer or to from Column (a) that is subject to apportionment. appoint another person as Power of Attorney for This is determined by reducing each amount in the taxpayer. Column (a) by any portion of that income, loss, Signature deduction, or modification that was reported as The return must be signed and dated by the nonbusiness income on Iowa Schedule D. If the president or other duly authorized officer. An S corporation did not complete an Iowa Schedule amended return must be signed and dated by the D for the year, column (b) must equal column (a). Iowa pass-through representative for the tax year. The sum of the amounts reported in Column (b) The return will not be considered valid unless this should equal the income subject to requirement is met. Also include the signer’s title apportionment reported on Part 4, line 23 of this and daytime phone number. return. Column (c) BAR: In Column (c), enter the S corporation’s BAR from Schedule E, line 13. Column (d) Iowa apportioned amount: In Column (d), lines 1-16, multiply the amount in Column (b) by the BAR in Column (c). This is the S corporation’s income apportioned to Iowa. Enter on Column (d), line 17 the Iowa nonbusiness income from Part 4, line 26 of this return. Finally, enter on Column (d), line 18 the total Iowa composite tax paid for the nonresident shareholders as reported on the S corporation’s 2022 IA PTE-C, line 1, or enter on Column (d), line 19 the Iowa PTET credits reported to shareholders. The Iowa PTET credits reported to shareholders equals the S corporation’s net Iowa PTET from Part 6, line 40 x 94% (.94). However, if you are using this return to make a PTET election for a short tax year that began in 2024, the Iowa PTET credits reported to shareholders equals the S corporation’s net Iowa PTET from Part 6, line 40 x 94.3% (.943). Authorized Signer: By signing this form, you attest that you are authorized to act on behalf of the S corporation in tax matters. The Department will consider the person who signs this form to have full authority to interact with the Department on behalf of the taxpayer without the need to file an additional Representative Certification form. This includes the ability to discuss the return and other tax matters with the Department, act on behalf of the taxpayer, and to appoint a Power of Attorney to represent the taxpayer before the Department. Preparer Information If the return was prepared by someone other than the taxpayer, all lines for preparer information must be completed. Enter the Preparer Tax Identification Number (PTIN) issued by the IRS for the preparer’s identification. A Tax Return Preparer as defined by Iowa Code section 421.62 may be subject to penalty for failure to include their PTIN. 42-005l (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 13 Instructions for preparing the IA 1120S • Enter the shareholder’s share of the S Schedule K-1 corporation’s total nonbusiness income from IA Schedule K-1 shows each shareholder’s share Iowa Schedule D, line 17. of all-source income and deductions, Iowa • Enter the S corporation’s BAR from the IA modifications, Iowa allocated and apportioned 1120S, Schedule E, line 13. amounts, Iowa tax credits, and other important • Answer yes or no to the question of whether information. Complete information for each the S corporation is including additional shareholder in an acceptable format must be attachments with the K-1. provided. The IA 1120S and IA Schedule K-1 are • Answer yes or no to the question of whether provided on our website. the S corporation made a PTET election for the tax year. Part I: General Information Corporation information Part II: Shareholder’s Pro Rata Share Items: Enter the name and Federal Employer Column (a) federal/all-source amounts: Enter Identification Number (FEIN) of the S corporation the shareholder’s pro rata share of the federal/allon each IA Schedule K-1. source S corporation items from the corresponding lines of the IA 1120S, Iowa If this is an amended IA Schedule K-1, check the Schedule K, column (a). The allocation of “Amended K-1” box. If the S corporation is shareholder items among shareholders should amending for a federal centralized partnership be consistent with the allocations made on the audit change or an Iowa pass-through entity audit federal Schedules K-1. Alternative allocations of change and is electing to pay with an IA 103, do S corporation items among shareholders for Iowa not issue amended Schedules K-1. Instead, the tax purposes are not permitted. S corporation will need to send a letter to the shareholder as described on the instructions Column (b) amounts attributable to Iowa: On above for the IA 1120S, line 41. lines 1-16 of column (b) enter the shareholder’s pro rata share of the Iowa apportioned amount Shareholder Information from the corresponding lines of the IA 1120S, • Enter name, Social Security Number (SSN) or Iowa Schedule K, column (d). On line 17 of FEIN, and address of shareholder. In the case column (b), enter the shareholder’s pro rata share of a disregarded entity, enter the applicable of the Iowa allocated income from the IA 1120S, information of the beneficial owner. Iowa Schedule K, column (d), line 17. • Check either the resident shareholder or nonresident shareholder box. A nonresident Provide a supplemental schedule to shareholders shareholder includes any individual who is not with the IA Schedule K-1 describing the type and a resident of Iowa, any estate or trust without a amount of each Iowa modification or Iowa allocated situs in Iowa, or any business entity without a income reported on lines 16 or 17, if any. commercial domicile in Iowa. Any shareholder Part III: Iowa Composite and PTET Credits: whose state or residence, situs, or commercial On line 1, enter the nonresident shareholder’s domicile, as applicable, is not known by the S share of the Iowa composite tax paid by the S corporation shall be considered a nonresident corporation from the total reported on the IA shareholder. 1120S, Iowa Schedule K, column (d), line 18. • Check the appropriate box for the On line 2, enter the shareholder’s share of the shareholder’s entity type. Iowa PTET credit from the total reported on the • Enter shareholder’s percentage of ownership IA 1120S, Iowa Schedule K, column (d), line 19. in the S corporation. PTET credits must be allocated to shareholders • Enter the shareholder’s share of the S in the ratio of each shareholder’s share of the corporation’s Iowa receipts reported on the IA earnings of the S corporation to the S 1120S, Schedule E, column A, line 12. corporation’s total earnings. • Enter the shareholder’s share of the S corporation’s everywhere receipts reported on the IA 1120S, Schedule E, column B, line 12. 42-005m (11/03/2023) 2023 IA 1120S Iowa Income Tax Return of S Corporation Instructions, page 14 Part IV: Shareholder’s portion of Iowa credits: Enter the shareholder’s pro rata share of each Iowa tax credit included by the S corporation on the IA 1120S, Schedule B. For each tax credit claim provide the tax credit code, tax credit certificate number (if applicable), and current year amount allocated to the shareholder. Tax credits must be allocated to shareholder in the ratio of each shareholder’s share of the earnings of the S corporation to the S corporation’s total earnings, unless Iowa law explicitly provides for a different method of allocation. Franchise Tax Credit If you are a financial institution and the shareholder is eligible to claim the Franchise Tax Credit, you must include the following information on a separate supplemental schedule with the IA Schedule K-1 to allow shareholders to complete an IA 147: • The financial institution’s total net income from IA 1120S, Part 4, line 21. • The financial institution’s total franchise tax liability minus credit claims from IA 1120F, line 14. • The shareholder’s ownership percentage. Individual shareholders: Resident and nonresident individual shareholders must report all S corporation income that is reportable on the shareholder’s federal individual income tax return when completing the IA 1040 Iowa Individual Income Tax Return. The shareholder’s all-source Iowa modifications from IA Schedule K-1, column (a), line 16 are reported as “Other Income” on the IA 1040, Schedule 1, line 11, column (A) if positive or as “Other Adjustments” on the IA 1040, Schedule 1, line 19, column (B) if negative, to the extent they affect Iowa net income. In addition, nonresident or part-year resident individual shareholders report the IA Schedule K1, column (b) amounts attributable to Iowa on the IA 126, Iowa Nonresident and Part-Year Resident Credit. Report the Iowa-source amount of each S corporation item on the appropriate line of the IA 126, to the extent it affects Iowa net income. Iowa modifications and Iowa allocated income from the IA Schedule K-1, column (b), lines 16 and 17 are reportable on the IA 126, line 12 (if positive) or line 23 (if negative). Information for shareholders on reporting the IA 1120S Schedule K-1 Any shareholder can have nexus with Iowa for income or franchise tax purposes and an Iowa tax return filing requirement by having an ownership interest in an S corporation doing business in Iowa. Estate/trust shareholders: Resident and nonresident estate/trust shareholders must report all S corporation income that is reportable on the shareholder’s federal income tax return when completing the IA 1041. The shareholder’s allsource modifications from IA Schedule K-1, column (a), line 16 are reported on the IA 1041, Schedule A, Part I, line 4 (if positive) or Part II, line 6 (if negative). In addition, nonresident or part-year resident estates/trusts report the IA Schedule K-1, column (b) amounts attributable to Iowa on the IA 1041, Schedule C Computation of Nonresident/Part-year Resident Tax Credit. Report the Iowa-source amount of each S corporation item on the appropriate line of the IA 1041, Schedule C to the extent it affects Iowa taxable income. Iowa modifications and Iowa allocated income from the IA Schedule K-1, column (b), lines 16 and 17 are reportable on the IA 1041, Schedule C, Column B, line 18, to the extent they affect Iowa taxable income. If the tax year of a shareholder is different than that of the S corporation, the distributive share of S corporation items is to be included on the shareholder’s Iowa return for the tax year during which the tax year of the S corporation ends. Business-entity shareholders: Any shareholder that is a business entity (corporation, partnership, LLC, etc.) must use the appropriate amounts from the Iowa Schedule K-1 to complete their Iowa tax return. When reporting business income, the shareholder’s all-source Iowa modifications from IA Schedule K-1, column (a), line 16 are reported on Schedule A of the IA 1065, IA 1120, IA 1120S, or IA 1120F. The shareholder’s share of the S corporation’s Iowa Receipts and Receipts Everywhere from the IA Schedule K-1, Part I, are reported on the BAR of the IA 1065, IA 1120, IA 1120S, or on the IA Franchise Schedule 59F of the IA 1120F. 42-005n (11/03/2023)
Extracted from PDF file 2023-iowa-form-ia-1120s-instructions.pdf, last modified November 2023

More about the Iowa Form IA 1120S Instructions Corporate Income Tax TY 2023

We last updated the Form IA 1120S/K-1 Instructions in January 2024, so this is the latest version of Form IA 1120S Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form IA 1120S Instructions directly from TaxFormFinder. You can print other Iowa tax forms here.

Related Iowa Corporate Income Tax Forms:

TaxFormFinder has an additional 43 Iowa income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Iowa Form IA 1120S Instructions.

Form Code Form Name
Form IA 1120S Shhedule K-1 Schedule K-1 - Shareholder’s Share of Iowa Income, Deductions, Modifications
Form IA 1120S Income Tax Return for S Corporation
Form IA 1120SchF IA Corporation Schedules F and G
Form IA 1120SchH 1120 Schedule H Computation of Federal Tax Refund/Deduction 42-021
Form IA 1120SchL 1120 Schedule L Iowa Nexus Adjustment

Download all IA tax forms View all 44 Iowa Income Tax Forms


Form Sources:

Iowa usually releases forms for the current tax year between January and April. We last updated Iowa Form IA 1120S Instructions from the Department of Revenue in January 2024.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Iowa Form IA 1120S Instructions

We have a total of three past-year versions of Form IA 1120S Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Form IA 1120S Instructions

IA 1120S Instructions, 42-005

2022 Form IA 1120S Instructions

IA 1120S Instructions, 42-005

2021 Form IA 1120S Instructions

IA 1120 Instructions, 42-005


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