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Level 2
posted Jun 4, 2019 7:54:56 PM

My 1120S return for filing includes empty L, M-1, M-2 schedules. I'm a one man show in Washington state with a very simple return. Do I need to fill out these forms

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1 Best answer
New Member
Jun 4, 2019 7:54:57 PM

No, you are not required to fill out Schedules L or M-1 if you meet the eligibility requirements. So if the total of total receipts (sales) for the tax year were less than $250,000 and the corporation’s total assets at the end of the tax year were less than $250,000, you will have no filing requirement related to Schedules L or M-1

There is no M-2 filing requirement for an 1120S if your S-Corporation was never a C-Corporation. (Related to tracking undistributed earnings of an S corporation that have been taxed to shareholders previously.)

Also there would only be an M-3 requirement for an S Corporation that reports on Schedule L of Form 1120S total assets at the end of the corporation’s tax year that exceed $10 million, then Schedule M-3 must be completed.

3 Replies
New Member
Jun 4, 2019 7:54:57 PM

No, you are not required to fill out Schedules L or M-1 if you meet the eligibility requirements. So if the total of total receipts (sales) for the tax year were less than $250,000 and the corporation’s total assets at the end of the tax year were less than $250,000, you will have no filing requirement related to Schedules L or M-1

There is no M-2 filing requirement for an 1120S if your S-Corporation was never a C-Corporation. (Related to tracking undistributed earnings of an S corporation that have been taxed to shareholders previously.)

Also there would only be an M-3 requirement for an S Corporation that reports on Schedule L of Form 1120S total assets at the end of the corporation’s tax year that exceed $10 million, then Schedule M-3 must be completed.

Level 2
Mar 15, 2022 1:25:57 PM

Hi. I’d like to chime in with a related question, if I may. My sales were over $250,000, but after deducting expenses and so forth, it’s under $250K. Meaning my assets, right? Do I still need to file these schedules?

Expert Alumni
Mar 15, 2022 6:58:58 PM

@angeliz10  Yes.  Your sales were over $250,000.