§6037 — Return of S corporation
21 cases·2 followed·3 distinguished·1 criticized·1 overruled·14 cited—10% support
Statute Text — 26 U.S.C. §6037
Every S corporation shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowable by subtitle A, the names and addresses of all persons owning stock in the corporation at any time during the taxable year, the number of shares of stock owned by each shareholder at all times during the taxable year, the amount of money and other property distributed by the corporation during the taxable year to each shareholder, the date of each such distribution, each shareholder’s pro rata share of each item of the corporation for the taxable year, and such other information, for the purpose of carrying out the provisions of subchapter S of chapter 1, as the Secretary may by forms and regulations prescribe. Any return filed pursuant to this section shall, for purposes of chapter 66 (relating to limitations), be treated as a return filed by the corporation under section 6012.
Each S corporation required to file a return under subsection (a) for any taxable year shall (on or before the day on which the return for such taxable year was filed) furnish to each person who is a shareholder at any time during such taxable year a copy of such information shown on such return as may be required by regulations.
A shareholder of an S corporation shall, on such shareholder’s return, treat a subchapter S item in a manner which is consistent with the treatment of such item on the corporate return.
In the case of any subchapter S item, if—
the corporation has filed a return but the shareholder’s treatment on his return is (or may be) inconsistent with the treatment of the item on the corporate return, or
the corporation has not filed a return, and
the shareholder files with the Secretary a statement identifying the inconsistency,
paragraph (1) shall not apply to such item.
A shareholder shall be treated as having complied with clause (ii) of subparagraph (A) with respect to a subchapter S item if the shareholder—
demonstrates to the satisfaction of the Secretary that the treatment of the subchapter S item on the shareholder’s return is consistent with the treatment of the item on the schedule furnished to the shareholder by the corporation, and
elects to have this paragraph apply with respect to that item.
In any case—
described in subparagraph (A)(i)(I) of paragraph (2), and
in which the shareholder does not comply with subparagraph (A)(ii) of paragraph (2),
any adjustment required to make the treatment of the items by such shareholder consistent with the treatment of the items on the corporate return shall be treated as arising out of mathematical or clerical errors and assessed according to section 6213(b)(1). Paragraph (2) of section 6213(b) shall not apply to any assessment referred to in the preceding sentence.
For purposes of this subsection, the term “subchapter S item” means any item of an S corporation to the extent that regulations prescribed by the Secretary provide that, for purposes of this subtitle, such item is more appropriately determined at the corporation level than at the shareholder level.
For addition to tax in the case of a shareholder’s negligence in connection with, or disregard of, the requirements of this section, see part II of subchapter A of chapter 68.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.6037-1 Return of electing small business corporation
- Treas. Reg. §Treas. Reg. §1.6037-1(a) In general.
- Treas. Reg. §Treas. Reg. §1.6037-1(b) Time and place for filing return.
- Treas. Reg. §Treas. Reg. §1.6037-1(c) Other provisions.
- Treas. Reg. §Treas. Reg. §1.6037-1(d) Penalties.
- Treas. Reg. §Treas. Reg. §1.6037-2 Required use of electronic form for income tax returns of electing small business corporations
- Treas. Reg. §Treas. Reg. §1.6037-2(a) In general.
- Treas. Reg. §Treas. Reg. §1.6037-2(b) Applicability date.
- Treas. Reg. §Treas. Reg. §301.6037-1 Return of electing small business corporation
- Treas. Reg. §Treas. Reg. §301.6037-2 Required use of electronic form for returns of electing small business corporation
- Treas. Reg. §Treas. Reg. §301.6037-2(a) Returns of electing small business corporation required electronically.
- Treas. Reg. §Treas. Reg. §301.6037-2(b) Exclusions from electronic-filing requirements—(1) Waivers.
- Treas. Reg. §Treas. Reg. §301.6037-2(c) Failure to file.
- Treas. Reg. §Treas. Reg. §301.6037-2(d) Meaning of terms.
- Treas. Reg. §Treas. Reg. §301.6037-2(e) Example.
- Treas. Reg. §Treas. Reg. §301.6037-2(f) Applicability date.
21 Citing Cases
But unlike the majority I would take an additional step to ensure that this general power isn't subject to a specific exception tucked into section 6037(c) .
As an S corporation petitioner is required to make an annual return pursuant to section 6037.2 Petitioner's returns for 2002 through 2012, specifically ¹ Unless otherwise indicated, all subsequent section references are to the Internal Revenue Code (Code) in effect for 2010, the taxable year in issue.
First, they say that section 6037 lets the Commissioner choose either to issue a notice of deficiency or to summarily assess.
Rather, the filing ofForm 1120S is required under the authority ofsection 6037, which is in part III ("Information Returns") ofsubchapter A ofchapter 61.
LL stopped filing these Forms 1120S, U.S. Income Tax Return for an S Corporation, as soon as he became CFO. He also stopped sending Schedules K–1, Shareholder’s Share of Income, Deductions, Credits, etc., to Maggard.5 By 2012 Maggard had caught on to LL and WJ. He hired a CPA and asked him to reconcile Schricker’s accounts. They discovered
When Ashand was incorporated in 2000, Velappan and Karen each owned 100 shares of the business. We know this because we have Ashand’s list of shareholders, which was memorialized in its first board meeting and in its articles of incorporation. Karen also says she herself remembers going to a Manhattan attorney’s office in 2000 to sign the c
- 3 - [*3] The firm had a rough start, and Ward began to struggle financially. She was able to get some of her debt discharged in 2012 and 2013. Midland Funding discharged about $7,000 of debt in 2012, and FIA Card Services NA discharged another $11,000 of debt in 2013. When it comes time for an S corporation to report its activities, i
- 3 - [*3] The firm had a rough start, and Ward began to struggle financially. She was able to get some of her debt discharged in 2012 and 2013. Midland Funding discharged about $7,000 of debt in 2012, and FIA Card Services NA discharged another $11,000 of debt in 2013. When it comes time for an S corporation to report its activities, i
Unless otherwise stated, all section references are to the Internal Revenue Code of 1986, as amended and in effect for the years in issue, and all Rule references are to the Tax Court Rules ofPractice and Procedure. - 8 - [*8] For 2010 FWP reported gross receipts or sales of$289,201, total expenses of$141,559, and ordinary business inco
-10- supplies are "actually used or consumed." Congress's target was taxpayers primarily motivated by a desire to shelter income--notthose motivated by profit. Id. at 58, reprinted in 1976 U.S.C.C.A.N. at 3494. Indeed, the Senate hoped the changes would "improve the competitive position offull time farmers." Id. Both parties agree that
A corporation makes an election for a taxable year under this paragraph (f) by attaching a statement to a timely filed original or amended return required to be filed under section 6037 for that taxable year.