11687: 1120 - Important Facts - Payments, PINs, e-Filing, and Other Functions

Important Facts About the 1120 Corporate Return

• There are not any vouchers produced in form 1120. If there is a balance due, Corporations must use Electronic Funds Withdrawal to make all Federal Tax Deposits.
• Corporate tax deposits must be made electronically.
  • To pay corporate tax due, use either the PMT screen or EFTPS (Electronic Federal Tax Payment System).
  • To pay estimated taxes, file a deposit via EFTPS. The 1120 does not have a federal estimated tax voucher.
  • To get more information about EFTPS or to enroll in EFTPS, visit https://www.eftps.gov/eftps/ or call 1-800-555-4477. Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System - A Guide To Getting Started.
• Overpayments: see KB 10078 for details.  
• You cannot e-file a bankruptcy return.
• You can e-file an amended return. See FAQs F Completing an Amended Return and S Amended Return e-Filing in data entry.
• If you have data entered on the L/L2 screens but your balance sheets are not showing:
  • If the corporation’s total receipts for the tax year and balance sheets' total assets at the end of the tax year are both less than $250,000 the Schedules L, M1 and M2 are not required and Question 13 of the Schedule K is answered yes.
  • To force the schedules, on the PRNT screen, mark the option box Force Schedules G (1120-C), L, M-1, and M-2 to be printed.
• An 1120-H may be prepared by keying the H screen.
• Auto balancing can be turned off by using the global option or on the PRNT screen.
  • In Drake20, if you want to turn off auto-balance globally for all returns, go to Setup > Options > Calculation & View/Print tab > Turn off auto-balance of the balance sheet. If this is not checked, turn off the auto-balance on a single return by going to the PRNT screen and checking the box Reverse autobalance setup option. 
  • In Drake19 and prior, go to the PRNT screen and check the box Turn off autobalance.
• An extension may also be generated from the PRNT screen.
• If your 1120 return does not update from prior year, check in the prior year program to see if the return was marked as Final return. If the 1120 return was marked Final return in the previous year it will not update. If you want to update, go into last year's return and clear the Final return check box in Section E of screen 1. Then in this year's software go to Last Year Data > Update 20XX to 20XX, enter the EIN and follow the prompts.
• To indicate an election to forego NOL carryback on an 1120 return, go to the K screen, line 11. Once this election is made it is irrevocable.
• To get information to flow to Form 6252 - Installment Sale, enter the information on the 6252 screen in the upper right hand corner under Current Year and Prior Years.
• If you receive EF Message 0014, check the Title and Signature (name) of the officer signing the return. All fields must be completed on the PIN screen.
• To amend an 1120 return, go to the X screen, allow the program to fill in the ORIGINAL amounts from the return. Then go into data entry and key any changes that need to be made.
• To change an 1120 to an 1120S or an 1120S to an 1120, go to Tools > File Maintenance > Change file type. Enter the EIN and select the return type to which you would like to change the return.
• Use the DED screen to key information regarding other deductions. Use the INC screen to key information regarding other income.
• Use the NOTE screen to add a note to the 1120 return. If you enter a Date for the note, it will open each time you open the return until you enter a Date Completed (this option must be enabled at Setup > Options > Data Entry > Show notes/reminders....). A note can also be brought forward to next year’s software if it is entered on the bottom of this screen.
• Calendar year returns are due on April 15th and the 7004 extends the deadline 6 months, to October 15th. Fiscal year returns are due on the 15th day of the fourth month after the end of their year. A 7004 also extends the fiscal year deadline 6 months.