Corporation Tax is a tax levied on the profits of U.S. corporations. This includes income earned from business activities, investments, and other financial gains. The current federal corporate tax rate is 21%. All corporations, including C Corporations and S Corporations, are required to file corporate tax returns with the IRS.
Common Corporate Tax Forms
- Form 1120: Filed by C Corporations.
- Form 1120S: Filed by S Corporations.
- Form 1120-F: Filed by foreign corporations operating in the U.S.
Deadlines and Obligations
- Annual Filing Deadline: Due by April 15 for calendar year corporations.
- Estimated Tax Payments: Quarterly payments if owed tax is $500 or more.
Corporation Tax Forms and Filing Requirements
| Type of Corporation | Form Required | Filing Deadline | Description |
| C Corporation | Form 1120 | April 15 (calendar year) | Filed to report income, gains, losses, deductions, and credits. |
| S Corporation | Form 1120S | March 15 (calendar year) | Pass-through entities reporting income at shareholder level. |
| Foreign Corporation | Form 1120-F | April 15 (calendar year) | Filed by foreign corporations doing business in the U.S. |
| Extension Filing | Form 7004 | Prior to original due date | Request for a six-month extension on filing corporate tax returns. |
Frequently Asked Questions
What is the corporate tax rate in the U.S.?
The federal corporate tax rate is currently 21%.
What forms do C corporations need to file?
C corporations file Form 1120 to report their income and tax obligations.
When are corporation tax returns due?
Tax returns for most corporations are due by April 15 for calendar year businesses.
Can corporations get an extension to file?
Yes, corporations can file Form 7004 for a six-month extension, but taxes must be paid by the original deadline.
How is corporation tax calculated?
Corporation tax is based on a company’s taxable income, which is gross income minus deductions. The federal rate is 21%, while state rates vary.
Can corporations deduct expenses on their taxes?
Yes, corporations can deduct qualifying business expenses, such as employee salaries, rent, utilities, and business-related travel, which can reduce taxable income.
For more detailed guidance on Corporation Tax and your filing obligations, don’t hesitate to reach out. Our team of specialists is here to assist you with any questions you may have and help ensure your compliance. Contact us today!
