Form 1120 Schedule G – Everything You Need To Know

Introduction

As a business owner, it’s essential to stay on top of your taxes. One form that you’ll need to be familiar with is Form 1120 Schedule G. This form is used to report the information required for the tax on certain corporations that are not sub-chapter S corporations.

What is Form 1120 Schedule G?

Form 1120 Schedule G is an attachment to Form 1120, which is the U.S. Corporation Income Tax Return. You’ll need to file this form if your corporation is not a sub-chapter S corporation, and one or more of the following applies:

• Your corporation had gross receipts of $500,000 or more for the tax year
• Your corporation has assets of $10 million or more at the end of the tax year
• Your corporation is a member of a controlled group
• Your corporation had payments to a foreign person or entity
• Your corporation had a tax liability of $500,000 or more for the tax year

What Information is Required?

Form 1120 Schedule G requires you to report information about your corporation’s ownership, as well as any transactions with related parties. You’ll need to provide the following information:

• The name, address, and taxpayer identification number of each person who owns 5% or more of the corporation’s stock
• The name, address, and taxpayer identification number of each related party with whom the corporation had transactions during the tax year
• A description of each transaction with a related party, including the amount and nature of the transaction
• An explanation of how the transaction was priced

When is Form 1120 Schedule G Due?

Form 1120 Schedule G is due at the same time as Form 1120. For most corporations, this is the 15th day of the third month after the end of the tax year. If your corporation operates on a fiscal year, the due date may be different.

Penalties for Late Filing

If you fail to file Form 1120 Schedule G when it’s due, you may be subject to penalties. The penalty for late filing is generally 5% of the unpaid tax per month, up to a maximum of 25%.

Conclusion

Form 1120 Schedule G is an important form that you’ll need to file if your corporation meets certain criteria. Make sure you’re familiar with the information required and the due date to avoid any penalties. If you’re unsure about how to file this form, consider consulting with a tax professional.