Schedule L and Its Purposes
The Schedule L should be prepared on the accounting basis the business entity uses for its books and records.
Form 941 and Form 940
What is Form 941? To report income taxes, Social Security tax, or Medicare tax withheld from employee’s paychecks. To pay the employer’s portion of Social Security or Medicare tax.
What is Form 940? To report annual Federal Unemployment Tax Act (FUTA) tax.
Forms 1120 and 1120S Comparison
What is the difference between Form 1120 and 1120S? Form 1120 is used by C corporations. Form 1120S is used by S corporations.
Book Basis vs. Tax Basis
What is the difference between book basis and tax basis? Tax Basis determines income tax, penalties, capital gains, and other tax treatments for pass-through entities. Book Basis is a financial accounting term.
Schedule O and Its Use
What is Schedule O used for? Schedule O (Form 1120) is used by a controlled group of corporations filing Form 1120 or other corporate return to consent to an apportionment plan and allocated income, taxes, and other items.
Schedule 1 on Tax Returns
What is Schedule 1 on tax return? Generally, taxpayers file a Schedule 1 to report income or adjustments to income that can’t be entered directly on Form 1040.