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An S corporation files Form 1120S, U.S.
Income Tax Return for an S Corporation, and pays tax on any items that
are not passed through to the shareholders. The S corporation
gives each shareholder a Schedule K-1 (Form 1120S) to complete
Schedule E (Form 1040), and any other forms and schedules the
shareholder must file with his or her individual return.
Publication 334 and Publication 589 show a filled-In Form
1120S. The amounts reported on Schedule K are divided among the
shareholders according to each shareholder's percentage of stock
ownership. Each owner's share is shown on Schedule K-1. The
owners will report their share of income, deductions, and credits on
their individual tax return. |
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