If you’ve missed a few years of tax returns, or maybe you filed them but need to make changes, you might be wondering how far back you can go with Form 1120. Luckily, you have a few years of wiggle room. So, how far back can you file and amend your 1120 corporation tax return?
Here’s what you need to know about catching up, fixing mistakes, and ensuring you’re compliant.
How Many Years Back Can You File a Late 1120 Return?
Fortunately, there is no official time limit on how far back you can file an original corporate tax return. The IRS will generally accept them, especially if you have not already assessed a tax bill or taken enforcement action for that year.
However you should keep these things in mind:
- You can’t claim a refund after 3 years. If you missed the deadline, unfortunately there’s no way to claim it. The return must be filed and claimed within 3 years of the original due date.
- Filing late can trigger penalties and interest. Even if you owe nothing, the IRS may assess penalties for failing to file or paying on time.
- Filing late helps you avoid larger problems. While you may still see penalties, it’s much better to file late than not file at all.
How Far Back Can you Amend a Form 1120?
If you’ve already filed a Form 1120, but want to fix a mistake (wrong income, missing deduction, math error, etc.) you can amend it by filing Form 1120-X.
Some things to know:
- You have 3 years from the date the original return was filed (or 2 years from the date the tax was paid, whichever is later) to file an amended return if you want to claim a refund.
- After that, you can still amend the return, but only to increase your tax liability – you can no longer claim the refund.
Example: You filed your 2021 Form 1120 on March 15, 2022. You typically have until March 15, 2025, to file an amended return that includes a refund request.
What If You Haven’t Filed At All?
If you or your corporation haven’t filed for multiple years, it’s best to catch up while you still have some time. The most simple approach is:
- Start with the most recent 3 years. This will get you to the most recent tax years.
- Gather documentation year by year. Take your time to ensure all receipts, invoices, and documents match the year you’re filing for.
- Work with a CPA or tax professional. Things may get tricky, and unless you’re 100% sure how to handle missed tax filings, get in touch with a professional to avoid major penalties or compliance issues.
Note: If your corporation is inactive but you never dissolved it, you still need to file Form 1120 every year until it’s officially closed.
Ultimately, the Sooner the Better
While the IRS allows you time to file and amend late returns, it’s best to not wait too long. It could cost you in the long run with lost refunds, increasing penalties, or compliance issues.
If your business missed a few years of tax returns or needs to fix past filings, the best time is to act now. Contact us below for a free 30 minute consultation.
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