Inc Tax Filing
Step-by-step guide to filing your corporation's taxes correctly
INC Tax Filing Process: A Complete Step-by-Step Guide for Corporations
Filing taxes for a corporation—often referred to as an INC—is more complex than filing for an LLC or a sole proprietor. Corporations have multiple layers of compliance, detailed financial reporting requirements, and strict deadlines. Whether your corporation is a C-Corporation or an S-Corporation, understanding the correct filing steps is essential to avoid penalties, maintain good standing, and stay legally compliant.
Below is a clear, comprehensive breakdown of how INC tax filing works in the United States.
Table of Contents
Introduction to INC Tax Filing
Understanding Corporation Types (C-Corp vs S-Corp)
Step 1: Determine Your Corporation’s Tax Classification
Step 2: Gather Required Financial Records
Step 3: Complete the Correct IRS Corporate Tax Form
Form 1120 for C-Corporations
Form 1120-S for S-Corporations
Schedule K-1 for S-Corp shareholders
Step 4: File State Corporate Taxes
Michigan Corporate Income Tax (CIT)
Other state-specific requirements
Step 5: Issue Shareholder or Officer Forms (K-1)
Step 6: Pay Corporate Estimated Quarterly Taxes
Step 7: File Annual Reports With the State
Step 8: Submit Your Tax Return (Online vs Paper Filing)
Step 9: Maintain Corporate Tax and Financial Records
Common Mistakes to Avoid in INC Tax Filing
Final Thoughts: Staying Compliant Year After Year
🟦 1. Determine Your Corporation’s Tax Classification
Corporations fall into two main tax categories:
✔ C-Corporation (Default)
Pays tax at the corporate level
Uses Form 1120
May be taxed twice (corporate tax + shareholder dividends)
✔ S-Corporation (Requires IRS Election)
Pass-through taxation
Uses Form 1120-S
Profits are taxed on the shareholder’s personal returns via Schedule K-1
If you haven’t filed Form 2553, your corporation is automatically a C-Corporation.
🟦 2. Gather Financial Records for the Tax Year
Every corporation must maintain accurate bookkeeping. Before filing, gather:
Income statements (Profit & Loss)
Balance sheet
Payroll and contractor payments
Depreciation schedules
Inventory records
Shareholder distributions
Loan statements
Asset purchase records
Accurate bookkeeping ensures the tax return is correct and prevents IRS audits.
🟦 3. Complete the Correct IRS Tax Return Form
🔷 A. C-Corporation Filing Requirements
A C-Corp files:
✔ Form 1120 — U.S. Corporation Income Tax Return
This includes:
Gross receipts
Cost of goods sold
Deductions
Taxable income
Tax liability
Schedule L (Balance Sheet)
Schedule G (Ownership information)
Schedule M-1 / M-2 (Reconciliation schedules)
🔷 B. S-Corporation Filing Requirements
An S-Corp files:
✔ Form 1120-S — U.S. Income Tax Return for S-Corporation
PLUS:
✔ Schedule K-1 for each shareholder
This shows each shareholder’s portion of income, losses, and deductions.
🟦 4. File State Corporate Taxes
Each state has different requirements. For example:
✔ Michigan Corporations
Must file Michigan Corporate Income Tax (CIT)
Filing is done online only through Michigan Treasury Online (MTO)
Other states may require franchise taxes, gross receipts taxes, or minimum annual taxes.
🟦 5. Issue Forms to Shareholders or Officers (if S-Corp)
If your corporation is taxed as an S-Corp, you must issue:
K-1 forms to each shareholder
Include them with Form 1120-S
Shareholders must attach the K-1 to their personal Form 1040
This ensures transparent pass-through taxation.
🟦 6. Pay Estimated Quarterly Taxes
Corporations must pay taxes throughout the year.
✔ C-Corporations
Must make quarterly estimated tax payments using Form 1120-W.
✔ S-Corporations
The corporation usually does not pay tax, but shareholders may need to pay quarterly taxes using Form 1040-ES.
🟦 7. File Annual Reports With the State
Corporations must maintain good standing by filing state-level annual reports.
Example: Michigan
Form CD-2500 — Annual Report
Fee: $25
Due: February 15 every year
Filed online or by mail
Failure to file may lead to administrative dissolution.
🟦 8. Submit the Tax Return (Online or Paper)
✔ Current year returns
Most corporations can file electronically through authorized IRS e-file providers.
✔ Late or older returns (2–3+ years old)
These must be filed by mail to the IRS.
Mailing address for Michigan corporations:
Internal Revenue Service
Kansas City, MO 64999
Always keep copies of your returns and proof of mailing.
🟦 9. Retain All Corporate Tax Records
IRS recommends keeping business tax documents for at least 7 years, including:
Bank statements
Invoices
Receipts
Payroll documents
Previous tax returns
Corporate resolutions
Proper recordkeeping protects you during audits.
⭐ Conclusion: Filing Taxes for an INC
Filing taxes for a corporation involves several steps:
Identify your tax classification (C-Corp or S-Corp)
Gather financial statements
File the correct IRS form (1120 or 1120-S)
File state corporate tax returns
Issue K-1s (for S-Corp)
Pay estimated taxes
File annual state reports
Submit tax returns on time (mail for old years)
Maintain accurate records
Although the process has more steps than LLC taxation, corporations benefit from stronger structure, better investment opportunities, and more growth-focused protection.
⭐ How to Fix 5 Years of Missing INC Taxes in Michigan (Step-by-Step Guide)
If a Michigan corporation (INC) has not filed taxes for the last 5 years, it must correct three different areas:
Federal IRS Corporate Tax Returns
Michigan Corporate Income Tax (CIT)
Michigan LARA Annual Reports
Below is the complete step-by-step solution for Michigan.
🟦 STEP 1 — File All Missing IRS Corporate Tax Returns (Mandatory)
The IRS does not allow online filing for old returns.
You must mail one return for each missing year.
✔ Required IRS forms:
C-Corporation → Form 1120
S-Corporation → Form 1120-S + K-1 for each shareholder
✔ Mailing Address for Michigan Corporations:
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999
✔ What to include:
Yearly income statement
Balance sheet
Depreciation schedule
Payroll and 1099 reports
Officer compensation
Sign each return
Mail all years separately
✔ Important:
The IRS cannot reject late corporate returns.
Penalties may apply, but filing is still accepted.
🟥 STEP 2 — File 5 Years of Michigan Corporate Income Tax (CIT)
Michigan does not accept paper CIT returns.
✔ Must file on:
👉 Michigan Treasury Online (MTO)
https://mto.treasury.michigan.gov
✔ However, for old years, MTO blocks filing.
So you must call Treasury.
✔ Call Michigan Treasury and request:
“I need back-period access opened for Corporate Income Tax for tax years XXXX–XXXX.”
Phone: 517-636-6925
They will unlock each missing tax year in your MTO account so you can file.
✔ What must be filed:
CIT Annual Returns
Sales tax returns (if you had a sales tax license)
Withholding returns (if you had employees)
❗ Important:
Michigan NO longer allows paper filing for any business taxes.
🟩 STEP 3 — File LARA Annual Reports (If Missing)
Even if federal/state taxes are missing, your INC may still be active or automatically dissolved.
If your corporation is active:
Just file all missing annual reports.
✔ Required Form:
CD-2500 — Annual Report for Profit Corporations
✔ Filing fee:
$25 per year
✔ How to file:
Online through LARA
Or by mailing paper reports
✔ Mailing Address:
Corporations Division
P.O. Box 30054
Lansing, MI 48909
If your INC is dissolved:
You must file:
Form CSCL/CD-2000 — Application for Reinstatement
All missing annual reports
Pay reinstatement fees
🟨 STEP 4 — Pay Penalties and Interest
Missing 5 years of corporate taxes means you may owe:
IRS penalties
IRS interest
Michigan CIT penalties
Michigan interest
LARA annual report late fees
Michigan does not charge huge penalties like California, but IRS penalties continue until you file.
🟪 STEP 5 — Bring Accounting Records Up to Date
Before filing, make sure you have:
Profit & loss statements for each year
Balance sheets
Payroll data (if applicable)
Bank statements
Receipts & invoices
Officer compensation
If records are missing, reconstruct them from:
Bank transactions
Credit card statements
Vendor statements
Payroll reports
Accounting software (if used)
🟧 STEP 6 — Resume Annual Compliance
After filing all 5 years:
✔ File current year IRS return (1120/1120-S)
✔ File current year CIT return on MTO
✔ File this year’s LARA annual report
✔ Begin required estimated tax payments
This prevents future penalties and keeps the INC in good standing.
