What type of returns must S-Corporations file?

S-Corporations are required to file Form 1120S. This form is specifically designed for S-Corporations to report income, deductions, gains, and losses. An S-Corporation is a special type of corporation that meets specific Internal Revenue Code requirements. It allows income to pass through to shareholders, meaning that the corporation itself generally does not pay federal income tax at the corporate level. Instead, the income is reported on the individual tax returns of the shareholders.

Form 1120S plays a crucial role in this process as it serves as the corporation's informational return, providing details about the financial performance of the S-Corporation and the distribution of income to shareholders. Additionally, when the form is completed, it also includes Schedule K-1, which gives each shareholder their share of the income, deductions, and credits to report on their individual tax returns.

The other forms listed serve different purposes: Form 1120 is for C-Corporations, Form 1065 is used by partnerships, and Form 1040 is the individual income tax return form. Thus, understanding the proper form for S-Corporations is essential for compliance with tax obligations.