Utah General Contractors - Business and Law Practice Exam

What Federal tax form would a corporation file for annual return of income?

1. Form 1040

2. Form 1099

3. Form 1120

4. Form W-2

The correct answer is: Form 1120

A corporation files Form 1120 as its annual return of income. This form is specifically designed for reporting the income, gains, losses, deductions, and credits of a corporation. It is critical for corporations to accurately complete this form to ensure compliance with federal tax regulations and to determine their tax liability for the year. Form 1040 is used by individual taxpayers to file their personal income tax returns, not corporations. Form 1099 is utilized to report various types of income that aren't salary, such as freelance payments or interest income, which does not apply to corporate income reporting. Form W-2 is issued to employees to report wages, tips, and other compensation, and is not relevant for corporate tax filings. Therefore, Form 1120 is the correct choice for a corporation’s annual income return.