Looking for a Schedule K-1 Form 1120s Templates? Download it for free!

2017

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)

return is required. Use these

results from making your amount or

Section references are to the Internal

Revenue Code unless otherwise noted.

instructions to help you report the

treatment of the item consistent with

items shown on Schedule K-1 on your

that shown on the corporation's

Future Developments

tax return.

return. Any deficiency that results

For the latest information about

from making the amounts consistent

Your share of S corporation income

developments related to

may be assessed immediately.

isn't self-employment income and it

Schedule K-1 (Form 1120S) and its

isn't subject to self-employment tax.

Errors

instructions, such as legislation

enacted after they were published, go

The amount of loss and

If you believe the corporation has

to IRS.gov/Form1120S.

deduction you may claim on

made an error on your Schedule K-1,

your tax return may be less

notify the corporation and ask for a

What’s New

CAUTION

than the amount reported on

corrected Schedule K-1. Don't change

We expanded the stock basis

Schedule K-1. It is the shareholder's

any items on your copy of

worksheet. The new worksheet will

responsibility to consider and apply

Schedule K-1. Be sure that the

make it easier for you to figure the

any applicable limitations. See

corporation sends a copy of the

basis of your stock and debt in the

Limitations on Losses, Deductions,

corrected Schedule K-1 to the IRS. If

corporation at the end of each

and

Credits, later, for more

you are unable to reach an agreement

corporate tax year. See the

information.

with the corporation regarding the

Worksheet for Figuring a

inconsistency, file Form 8082.

Shareholder’s Stock and Debt

Basis.

Schedule K-1 doesn't show actual

Sale of S Corporation

dividend distributions the corporation

General Instructions

Stock

made to you. The corporation must

report such amounts totaling $10 or

Gain or loss from the disposition of

Purpose of Schedule K-1

more for the calendar year on Form

your S corporation stock may be net

1099-DIV, Dividends and

The corporation uses Schedule K-1 to

investment income under section

Distributions.

report your share of the corporation's

1411 and could be subject to the net

income, deductions, credits, and other

investment income tax. See Form

Inconsistent Treatment of

items. Keep it for your records. Don't

8960, Net Investment Income

Items

file it with your tax return unless

Tax—Individuals, Estates, and Trusts,

backup withholding is reported in

and its instructions for information

Generally, you must report corporate

box 13 using code O. (See the

about how to figure and report the tax.

items shown on your Schedule K-1

instructions for

Code O. Backup

(and any attached statements) the

International Boycotts

withholding, later.) The corporation

same way that the corporation treated

files a copy of Schedule K-1 with the

the items on its return.

Every corporation that had operations

IRS.

in, or related to, a boycotting country,

If the treatment on your original or

company, or a national of a boycotting

For your protection, Schedule K-1

amended return is inconsistent with

country must file Form 5713,

may show only the last four digits of

the corporation's treatment, or if the

International Boycott Report.

your identifying number (social

corporation hasn't filed a return, file

security number (SSN), employer

If the corporation cooperated with

Form 8082, Notice of Inconsistent

identification number (EIN), or

an international boycott, it must give

Treatment or Administrative

individual taxpayer identification

Adjustment Request (AAR), with your

you a copy of its Form 5713. You must

number (ITIN)). However, the

file your own Form 5713 to report the

original or amended return to identify

corporation has reported your

corporation's activities and any other

and explain any inconsistency (or to

complete identifying number to the

boycott operations that you may have.

note that a corporate return hasn't

IRS.

You may lose certain tax benefits if

been filed).

the corporation participated in, or

You may be liable for tax on your

If you are required to file Form 8082

cooperated with, an international

share of the corporation's income,

but don't do so, you may be subject to

boycott. See Form 5713 and its

whether or not distributed. Include

the accuracy-related penalty. This

instructions for details.

your share on your tax return if a

penalty is in addition to any tax that

Jan 25, 2018

Cat. No. 11521O

Instructions For Schedule K-1 (Form 1120s) - Shareholder'S Share Of Income, Deductions, Credits, Etc. - 2017

Related Articles

Related forms

Related Categories