Overview
What This Service Includes
A complete, CPA prepared Form 1120 engagement built on documented reconciliation, verified disclosures, and audit ready support.
✓ Form 1120 federal corporate tax return with all required schedules
✓ Book-to-tax reconciliation (Schedule M-1 or M-3) tied to financial statements
✓ Tax depreciation schedules (MACRS, Section 179, bonus depreciation)
✓ Foreign disclosure forms where required (Forms 5471, 5472, 8992, 1118)
✓ Tax attribute tracking (NOLs, credits, carryforwards)
✓ Estimated tax payment calculations for the following year
✓ Return support file with full documentation for IRS review
What This Service Addresses
Form 1120 is the U.S. federal income tax return for C corporations. It establishes the corporation’s federal tax liability, determines taxable income, and drives estimated tax payment obligations.
For corporations with multi state operations, related party transactions, depreciation differences, deferred compensation, or foreign ownership, the gap between book income and taxable income can be material and must be properly documented.
Permanent and temporary book to tax differences must be identified, quantified, and disclosed through Schedule M 1 or Schedule M 3.
Errors in Form 1120 are not merely technical. They create direct IRS exposure, including penalties, audit triggers, and positions that may be difficult to defend under examination.
TYM prepares Form 1120 from a documented book to tax reconciliation, starting with the year end close package and building a return support file that ties each figure in the return back to the underlying financial records.
The result is a return that is internally consistent, defensible, and audit ready.
Common Form 1120 Errors That Create IRS Exposure
Missing Form 5472
$25,000 automatic penalty per form and increased IRS scrutiny of related party transactions.
Missing Form 5471
$10,000 penalty per controlled foreign corporation, often compounded annually until filed.
Undocumented book to tax reconciliation
A Schedule M 1 or M 3 that does not tie to the general ledger creates immediate examination exposure.
Inconsistent depreciation
When fixed assets do not reconcile between Schedule L and Form 4562, the return is more likely to be reviewed.
Officer compensation gaps
Schedule E amounts that are not supported by payroll records may raise compensation issues in closely held corporations.
Carryforward attributes not tracked
NOL or capital loss claims without origin year support may be disallowed on examination.
The IRS targets returns with gaps, inconsistencies, or missing required disclosures.
Who it's for
Who This Service Is Best For
Domestic C corporations with U.S. federal filing obligations
from early stage companies earning first revenue to established businesses with multi year tax histories
Corporations with 25 percent or greater foreign ownership
where Form 5472 filing may be required
Holding companies and multi entity structures
with intercompany transactions, management fees, and cost allocations
Domestic C corporations with U.S. federal filing obligations
from early stage companies earning first revenue to established businesses with multi year tax histories
Companies with foreign subsidiaries
requiring Form 5471, Subpart F, GILTI, and foreign tax credit analysis
Businesses completing or integrating acquisitions
where purchase price allocations, stepped up basis, or Section 338 elections affect the current year return
Corporations with prior IRS notices
that may require amended returns and a structured correction process
Companies with NOL or other tax attribute carryforwards
where Section 382 limitations may need to be analyzed
Common triggers
Common Triggers for Engagement
Clients often engage TYM when one or more of the following applies:
- First year of C corporation filing following incorporation or entity conversion
- Significant change in revenue, ownership, or operating structure during the tax year
- Completion of an acquisition, asset purchase, or business combination
- Implementation of new equity compensation plans with deferred tax implications
- Multi-state expansion that changes apportionment and nexus profile
- Foreign investor entry or cross-border transaction introducing withholding, treaty, or disclosure obligations
- IRS notice, examination, or prior-year deficiency requiring corrected return
- CFO or controller transition requiring documented review of prior-year return positions
Our approach
What TYM Does
Year-End Close Review
Review of trial balance, financial statements, and general ledger. Issues identified before tax preparation begins.
Book-to-Tax Reconciliation
Identification and documentation of all permanent and temporary differences that form the basis for Schedule M 1 or M 3 so the return ties to the financials.
Depreciation & Fixed Assets
Preparation of tax depreciation schedules under MACRS, including Section 179 and bonus depreciation, while maintaining consistency with the fixed asset records.
Federal Return Preparation
Complete Form 1120 with all required schedules and disclosures, including foreign reporting where applicable.
Tax Attribute Tracking
Tracking of NOLs, capital losses, and credits across years to preserve tax benefits.
Estimated Tax Planning
Calculation of next year’s estimated tax payments to reduce underpayment risk.
Return Support File
A full documentation package that ties the return to the underlying records and supports future IRS review or correspondence.
Case study
Case Study: $75,000 Form 5472 Penalty Risk
A Miami-based technology company with a 40% foreign shareholder filed Form 1120 for three consecutive years without filing Form 5472, despite reportable related party transactions with the foreign parent.
When the IRS issued a notice requesting the missing forms, the corporation faced automatic penalties of $25,000, per year, for a total exposure of $75,000.
TYM prepared the delinquent Form 5472 filings, built transaction schedules tied to general ledger detail, submitted reasonable cause explanations, and coordinated the penalty abatement process.
Result: penalties reduced to $25,000 for one year
This was not a complex tax issue. It was a missed disclosure obligation with a significant cost.
Deliverables
- Completed Form 1120 with all required schedules (Schedule C, D, E, J, K, L, M-1/M-3, Form 4562, Form 4797, Form 1125-A/E as applicable)
- Book-to-tax reconciliation (permanent and temporary differences documented and tied to the general ledger)
- Tax depreciation schedule under MACRS, with Section 179 and bonus depreciation elections documented
- Tax attribute schedule: NOL carryforwards, capital loss carryforwards, foreign tax credit carryforwards, charitable contribution carryforwards
- Estimated federal tax payment schedule for the following tax year (Form 1120-W calculation)
- Foreign disclosure forms where applicable: Form 5471, Form 8992, Form 5472, Form 1118
- Return support file: full set of supporting schedules and reconciliations tied to the year-end close package
- Prior-year comparison summary: material changes in taxable income, deductions, credits, and effective tax rate
Scope
Scope Boundaries
Included
- U.S. federal C corporation income tax return (Form 1120) and all required schedules and attachments
- Book-to-tax reconciliation (Schedule M-1 or M-3)
- Tax depreciation and fixed asset schedule preparation
- Tax attribute tracking and carryforward schedule maintenance
- Estimated federal tax payment calculation for the following year
- Foreign-related disclosure forms (Form 5471, Form 5472, Form 8992, Form 1118) where applicable
- Return support file assembly
Not Included
- U.S. state corporate income tax return preparation - state filing obligations are assessed during intake and addressed as a separate engagement; state returns require separate apportionment analysis and are priced accordingly
- S corporation returns (Form 1120-S) - prepared under a separate engagement; see U.S. S Corporation Tax Return (1120-S)
- Partnership returns (Form 1065) - prepared under a separate engagement
- Payroll tax compliance (Forms 941, 940, W-2/W-3) - addressed through a separate payroll compliance engagement
- ASC 740 tax provision preparation - available as a separate engagement for corporations requiring audited financial statement tax provision work; book-to-tax reconciliation prepared as part of this engagement supports but does not replace a formal ASC 740 provision
- IRS examination representation - TYM provides documentation support and record organization; formal IRS representation is a separate advisory engagement
- Transfer pricing documentation - addressed through a separate advisory engagement for corporations with controlled transactions requiring contemporaneous documentation under Section 482
Process
How It Works
Scope assessment and prior-year review
Year-end close package collection
Book-to-tax reconciliation and schedule preparation
Internal CPA review
Client review and approval
Filing and support file delivery
Investment
Corporate Tax Return Preparation Fees
Federal corporate tax return fees depend on the confirmed scope of the engagement, including entity complexity, ownership structure, foreign components, multi state activity, fixed asset volume, and the condition of the year end close package.
Typical Form 1120 engagements start at $2,500 for straightforward domestic C corporations with clean year end financials and no foreign components.
A single entity domestic corporation with a clean close is materially different from a corporation with foreign subsidiaries, a foreign parent requiring Form 5472 disclosure, multi state activity, and NOL carryforwards requiring Section 382 analysis.
TYM structures fees based on confirmed scope after the initial filing assessment, not on a generic flat fee.
Fee increases with:
- Foreign ownership or foreign subsidiaries (Forms 5472, 5471, 8992, 1118)
- Multi-state operations requiring apportionment analysis
- Complex capital structure or ownership changes (Section 382 NOL analysis)
- Prior-year recovery or amended returns (Form 1120-X, carryforward reconstruction)
- Volume of fixed assets and depreciation complexity
Locations
Corporate Tax CPA Services in Miami
TYM Business Consulting is a corporate tax CPA firm based in Miami, Florida, providing practitioner led federal corporate tax preparation services for domestic C corporations.
TYM serves businesses in Miami, Coral Gables, Brickell, Aventura, and throughout the Greater Miami area, with particular experience supporting foreign owned U.S. corporations and Latin American parent structures common in Miami’s international business community.
TYM is an IRS Certified Acceptance Agent and serves businesses across South Florida and nationally, including corporations with foreign shareholders or ownership structures that require both federal compliance expertise and cross border tax awareness.
Many Miami based clients operate in technology, real estate, professional services, e commerce, and international trade. These businesses often involve foreign equity participants, Latin American or European parent entities, or multi state revenue streams, situations where the federal return requires more than basic data entry and where book to tax reconciliation must be carefully documented.
TYM’s corporate tax practice is practitioner led. Returns are prepared and reviewed by CPAs working directly on client files, not managed through a volume processing model.
Request a Corporate Tax Assessment
Corporate tax return complexity depends on entity structure, ownership, operating footprint, and the condition of the financial records. The right starting point is a review of your specific situation, not a generic fee estimate.
TYM conducts an initial corporate tax assessment to confirm filing obligations, identify required schedules and disclosure forms, evaluate the year end close package, and establish scope before preparation begins.
If you are filing Form 1120 without documented book to tax reconciliation, organized return support files, or confirmed foreign disclosure compliance, your return may create examination exposure.
FAQ
Frequently Asked Questions
What is Form 1120 and who is required to file it?
What is the difference between Form 1120 and Form 1120-S?
What documents are needed to prepare Form 1120?
What is a book-to-tax reconciliation and why does it matter?
How much does Form 1120 preparation cost?
What is the filing deadline for Form 1120?
What are estimated tax payments for corporations?
What are estimated tax payments for corporations?
The content on this page is for informational purposes only and does not constitute professional tax or legal advice. Tax obligations depend on individual facts and circumstances. Consult a qualified CPA or tax advisor for guidance specific to your situation.
