Form 1120S Form 1120S U.S. Income Tax Return for an S Corporation

Form

1120S

U.S. Income Tax Return for an S Corporation
©

Department of the Treasury
Internal Revenue Service

C Check if Sch. M-3
attached

, 2009, ending

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Use
IRS
label.
Otherwise,
print or
type.

B Business activity code
number (see instructions)

2009

Do not file this form unless the corporation has filed or is
attaching Form 2553 to elect to be an S corporation.
© See separate instructions.

For calendar year 2009 or tax year beginning
A S election effective date

OMB No. 1545-0130

, 20

Name

D Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date incorporated

City or town, state, and ZIP code

F Total assets (see instructions)

$

Yes
No
G Is the corporation electing to be an S corporation beginning with this tax year?
If “Yes,” attach Form 2553 if not already filed
(3)
(2)
Name change
Address change
Final return
H Check if: (1)
(4)
(5)
S election termination or revocation
Amended return
©
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .

Tax and Payments

Deductions (see instructions for limitations)

Income

Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Cost of goods sold (Schedule A, line 8)
. . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . .
Other income (loss) (see instructions—attach statement) . . . . . . . .
Total income (loss). Add lines 3 through 5 . . . . . . . . . . . .
Compensation of officers . . . . . . . . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . .
Bad debts
. . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Schedule A or elsewhere on return (attach Form 4562)
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . .
Total deductions. Add lines 7 through 19
. . . . . . . . . . . .
Ordinary business income (loss). Subtract line 20 from line 6 . . . . . .

22 a
b
c
23 a
b
c
d
24
25
26
27

Excess net passive income or LIFO recapture tax (see instructions) . . 22a
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . .
2009 estimated tax payments and 2008 overpayment credited to 2009 23a
Tax deposited with Form 7004 . . . . . . . . . . . . 23b
Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c
Add lines 23a through 23c
. . . . . . . . . . . . . . . . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ©
Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . .
Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . .
Enter amount from line 26 Credited to 2010 estimated tax ©
Refunded ©

Sign
Here

b Less returns and allowances

Gross receipts or sales

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22c

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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)?

©

Paid
Preparer’s
Use Only

Signature of officer

Preparer’s
signature

Date

Yes

Title

Date

©

Firm’s name (or
yours if self-employed),
address, and ZIP code

©

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Preparer’s SSN or PTIN

Check if selfemployed

©

No

EIN
Phone no.
Cat. No. 11510H

Form

1120S

(2009)

Form 1120S (2009)

Schedule A
1
2
3
4
5
6
7
8
9a

Page

1
Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . .
2
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . .
5
Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . .
Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . .
6
7
Inventory at end of year
. . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . .
8
Check all methods used for valuing closing inventory:
(i)
Cost as described in Regulations section 1.471-3
(ii)
Lower of cost or market as described in Regulations section 1.471-4
Other (Specify method used and attach explanation.) ©
(iii)

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b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) . . .
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
9d
inventory computed under LIFO . . . . . . . . . . . . . . . . . . . . . .
e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? . .
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
If “Yes,” attach explanation.

Schedule B
1
2

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Other Information (see instructions)

Check accounting method: a
See the instructions and enter the:
a Business activity ©

Cash

b

Accrual

c

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©
©

Yes
Yes

No
No

Yes No

Other (specify) ©

b Product or service ©

3

At the end of the tax year, did the corporation own, directly or indirectly, 50% or more of the voting stock of a domestic
corporation? (For rules of attribution, see section 267(c).) If “Yes,” attach a statement showing: (a) name and employer
identification number (EIN), (b) percentage owned, and (c) if 100% owned, was a QSub election made? . . . . .

4

Has this corporation filed, or is it required to file, a return under section 6111 to provide information on any reportable
transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . ©

5

2

Cost of Goods Sold (see instructions)

If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
6

7
8

If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an
asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a
C corporation and (b) has net unrealized built-in gain (defined in section 1374(d)(1)) in excess of the net recognized
built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior
© $
years . . . . . . . . . . . . . . . . .
$
Enter the accumulated earnings and profits of the corporation at the end of the tax year.
Are the corporation’s total receipts (see instructions) for the tax year and its total assets at the end of the tax year less
than $250,000? If “Yes,” the corporation is not required to complete Schedules L and M-1
. . . . . . . . .

Income (Loss)

Schedule K
1
2
3a
b
c
4
5

Shareholders’ Pro Rata Share Items

Ordinary business income (loss) (page 1, line 21) . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . .
3a
Other gross rental income (loss) . . . . . . . . . .
3b
Expenses from other rental activities (attach statement) . . .
Other net rental income (loss). Subtract line 3b from line 3a . . .
Interest income . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . .
b Qualified dividends . . . . . . . . . .
5b
6
Royalties . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) .
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) .
b Collectibles (28%) gain (loss) . . . . . . . . . . .
8b
c Unrecaptured section 1250 gain (attach statement) . . . .
8c
9
Net section 1231 gain (loss) (attach Form 4797) . . . . . . .
10
Other income (loss) (see instructions) . . Type ©

Total amount

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Form

1120S

(2009)

Form 1120S (2009)

Page

Deductions

Section 179 deduction (attach Form 4562)
Contributions . . . . . . . . .
Investment interest expense
. . . .
Section 59(e)(2) expenditures (1) Type ©
Other deductions (see instructions) . .

13a
b
c
d
e
f
g

Low-income housing credit (section 42(j)(5)) . . . . . . . . . . .
Low-income housing credit (other)
. . . . . . . . . . . . .
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) .
Other rental real estate credits (see instructions) Type ©
Type ©
Other rental credits (see instructions) . . .

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Alcohol and cellulosic biofuel fuels credit (attach Form 6478)
Other credits (see instructions) . . . . .
Type ©

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14a
b
c

Name of country or U.S. possession ©

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14b
14c

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14d
14e
14f

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14g

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14i
14j

14k

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14l
14m
15a
15b
15c
15d
15e
15f
16a
16b
16c
16d
16e
17a
17b
17c

Alternative
Minimum Tax
(AMT) Items
Items Affecting
ReconOther
Shareholder
ciliation Information
Basis

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Type ©

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(2) Amount ©

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15a
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e
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16a
b
c
d
e

Post-1986 depreciation adjustment . . . . .
Adjusted gain or loss . . . . . . . . . .
Depletion (other than oil and gas) . . . . . .
Oil, gas, and geothermal properties—gross income
Oil, gas, and geothermal properties—deductions .
Other AMT items (attach statement) . . . . .
Tax-exempt interest income
. . . . . . .
Other tax-exempt income . . . . . . . .
Nondeductible expenses
. . . . . . . .
Property distributions
. . . . . . . . .
Repayment of loans from shareholders . . . .

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17a
b
c
d

Investment income . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . . .
Dividend distributions paid from accumulated earnings and profits
Other items and amounts (attach statement)

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18

Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l

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12c(2)

12d

Gross income from all sources . . . . . . . . . . . . . . . .
Gross income sourced at shareholder level . . . . . . . . . . . .
Foreign gross income sourced at corporate level
d Passive category . . . . . . . . . . . . . . . . . . . .
e General category . . . . . . . . . . . . . . . . . . . .
f Other (attach statement) . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at shareholder level
g Interest expense . . . . . . . . . . . . . . . . . . . .
h Other . . . . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at corporate level to foreign source income
i Passive category . . . . . . . . . . . . . . . . . . . .
j General category . . . . . . . . . . . . . . . . . . . .
k Other (attach statement) . . . . . . . . . . . . . . . . . .
Other information
l Total foreign taxes (check one): ©
Paid
Accrued
. . . . . .
m Reduction in taxes available for credit (attach statement) . . . . . . . .
n Other foreign tax information (attach statement)

Foreign Transactions

Credits

11
12a
b
c
d

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3

Total amount

Shareholders’ Pro Rata Share Items (continued)

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13a
13b
13c
13d
13e
13f
13g

14h

18
Form

1120S

(2009)

Form 1120S (2009)

Schedule L

Page

Balance Sheets per Books

Beginning of tax year

Assets

(a)

1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15

Cash . . . . . . . . . . .
Trade notes and accounts receivable .
Less allowance for bad debts . . . .
Inventories
. . . . . . . . .
U.S. government obligations . . . .
Tax-exempt securities (see instructions)
Other current assets (attach statement) .
Loans to shareholders . . . . . .
Mortgage and real estate loans . . .
Other investments (attach statement) .
Buildings and other depreciable assets .
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of any amortization) . . . .
Intangible assets (amortizable only) . .
Less accumulated amortization . . .
Other assets (attach statement) . . .
Total assets . . . . . . . . .
Liabilities and Shareholders’ Equity

16
17
18
19
20
21
22
23
24
25
26
27

Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) . .
Loans from shareholders . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement)
. . . .
Capital stock . . . . . . . . . . .
Additional paid-in capital . . . . . . .
Retained earnings . . . . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity
. .

1

Net income (loss) per books

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(b)

(c)

(d)

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Schedule M-1

4

End of tax year

(

)

(

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(

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(

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(

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(

)

(

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(

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(

)

(

)

Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

2

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5 Income recorded on books this year not included
on Schedule K, lines 1 through 10 (itemize):

Income included on Schedule K, lines 1, 2, 3c, 4,
5a, 6, 7, 8a, 9, and 10, not recorded on books this
year (itemize):

3

a
b
4

Expenses recorded on books this year not
included on Schedule K, lines 1 through 12 and
14l (itemize):
Depreciation $
Travel and entertainment $
Add lines 1 through 3

Schedule M-2

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a Tax-exempt interest $
6 Deductions included on Schedule K,
lines 1 through 12 and 14l, not charged
against book income this year (itemize):

a Depreciation $
7 Add lines 5 and 6
. . . . .
8 Income (loss) (Schedule K, line 18). Line 4 less line 7

Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Undistributed Taxable Income Previously Taxed (see instructions)
(a) Accumulated
adjustments account

1
2
3
4
5
6
7
8

Balance at beginning of tax year . . . . .
Ordinary income from page 1, line 21 . . .
Other additions . . . . . . . . . .
(
Loss from page 1, line 21 . . . . . . .
(
Other reductions . . . . . . . . . .
Combine lines 1 through 5 . . . . . . .
Distributions other than dividend distributions
Balance at end of tax year. Subtract line 7 from line 6

(b) Other adjustments
account

)
)(

(c) Shareholders’ undistributed
taxable income previously taxed

)

Form

1120S

(2009)