Filing the C-Corporation’s Annual Income Tax Return

U.S. corporations must file a U.S. Corporation Income Tax Return (Form 1120) each taxable year, even if the entity isn’t reporting any taxable income (exceptions where a special return is required). One of the difficult aspects of filing the return is starting with the corporation’s income statement, which is calculated typically using the accrual method of accounting, adjusting that number to arrive at federal taxable income. Adjustments for permanent and temporary differences in book versus tax income are one of the trickiest aspects of getting to the taxable bottom line.

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