2011 Shareholder'S Instructions For Schedule K-1 (Form 1120s) printable pdf download

2011

Department of the Treasury

Internal Revenue Service

Shareholder’s Instructions

for Schedule K-1

(Form 1120S)

Shareholder’s Share of Income, Deductions, Credits, etc.

(For Shareholder’s Use Only)

corporation must report such

must file Form 5713, International

Section references are to the Internal

Revenue Code unless otherwise noted.

amounts totaling $10 or more for the

Boycott Report.

calendar year on Form 1099-DIV,

If the corporation cooperated with

Dividends and Distributions.

What’s New

an international boycott, it must give

you a copy of its Form 5713. You

Inconsistent Treatment

must file your own Form 5713 to

The IRS has created a page on

of Items

report the corporation’s activities and

IRS.gov for information about

any other boycott operations that you

Schedule K-1 (Form 1120S) and its

Generally, you must report corporate

may have. You may lose certain tax

instructions at

items shown on your Schedule K-1

benefits if the corporation participated

form1120s. Information about any

(and any attached statements) the

in, or cooperated with, an

future developments affecting

same way that the corporation treated

international boycott. See Form 5713

Schedule K-1 (such as legislation

the items on its return.

and its instructions for details.

enacted after we released it) will be

If the treatment on your original or

posted on that page.

Elections

amended return is inconsistent with

the corporation’s treatment, or if the

General Instructions

Generally, the corporation decides

corporation has not filed a return, file

how to figure taxable income from its

Form 8082, Notice of Inconsistent

operations. However, certain

Purpose of Schedule K-1

Treatment or Administrative

elections are made by you separately

Adjustment Request (AAR), with your

The corporation uses Schedule K-1 to

on your income tax return and not by

original or amended return to identify

report your share of the corporation’s

the corporation. These elections are

and explain any inconsistency (or to

income (reduced by any tax the

made under the following code

note that a corporate return has not

corporation paid on the income),

sections.

been filed).

•

deductions, credits, etc. Keep it for

Section 59(e) (deduction of certain

your records. Do not file it with your

If you are required to file Form

qualified expenditures ratably over

tax return unless backup withholding

8082 but do not do so, you may be

the period of time specified in that

is reported in box 13 using code O.

subject to the accuracy-related

section). For details, see the

The corporation has filed a copy with

penalty. This penalty is in addition to

instructions for code J in box 12.

•

the IRS.

any tax that results from making your

Section 263A(d) (preproductive

amount or treatment of the item

expenses). See the instructions for

You are liable for tax on your share

consistent with that shown on the

code M in box 12.

of the corporation’s income, whether

•

corporation’s return. Any deficiency

Section 617 (deduction and

or not distributed. Include your share

that results from making the amounts

recapture of certain mining

on your tax return if a return is

consistent may be assessed

exploration expenditures).

required. Use these instructions to

•

immediately.

Section 901 (foreign tax credit).

help you report the items shown on

Schedule K-1 on your tax return.

Errors

Additional Information

Your share of S corporation

If you believe the corporation has

For more information on the

income is not self-employment

made an error on your Schedule K-1,

treatment of S corporation income,

income and it is not subject to

notify the corporation and ask for a

deductions, credits, etc., see Pub.

self-employment tax.

corrected Schedule K-1. Do not

535, Business Expenses; Pub. 550,

The amount of loss and deduction

change any items on your copy of

Investment Income and Expenses;

you may claim on your tax return may

Schedule K-1. Be sure that the

and Pub. 925, Passive Activity and

be less than the amount reported on

corporation sends a copy of the

At-Risk Rules.

Schedule K-1. It is the shareholder’s

corrected Schedule K-1 to the IRS. If

To get forms and publications, see

responsibility to consider and apply

you are unable to reach agreement

the instructions for your tax return or

any applicable limitations. See

with the corporation regarding the

visit the IRS website at IRS.gov.

Limitations on Losses, Deductions,

inconsistency, file Form 8082.

and Credits, later, for more

Limitations on Losses,

International Boycotts

information.

Deductions, and Credits

Schedule K-1 does not show

Every corporation that had operations

actual dividend distributions the

in, or related to, a boycotting country,

There are three potential limitations

corporation made to you. The

company, or a national of a country

on corporate losses that you can

Feb 06, 2012

Cat. No. 11521O

2011 Shareholder'S Instructions For Schedule K-1 (Form 1120s)

Related Articles

Related forms

Related Categories