Form 1120
Definition
The US federal income-tax return filed by C corporations to report income, deductions and the corporate tax owed. S corporations instead file Form 1120-S.
Related Terms in US Tax
Form W-9
The US form a business requests from a contractor or vendor to collect their taxpayer identification number and certification, so the business can correctly report payments on a 1099 and avoid backup withholding.
Backup Withholding
A requirement to withhold a flat percentage of certain US payments and remit it to the IRS when a payee has not supplied a valid taxpayer identification number or is otherwise flagged. It ensures tax is collected despite missing details.
MACRS Depreciation
The Modified Accelerated Cost Recovery System, the standard US tax method for depreciating most business assets, which assigns assets to classes with set recovery periods and accelerated schedules.
Bonus Depreciation
A US provision letting businesses deduct a large percentage of the cost of qualifying assets in the first year, on top of or instead of regular depreciation. The applicable percentage has changed over time and should be checked for the year.
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