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How to prepare Form 1120-SF
About Form 1120-SF
Form 1120-SF is a tax form used by partnerships that opt to be treated as a corporation. It is also known as the U.S. Income Tax Return for Settlement Funds. Settlement funds are created when a lawsuit is settled and money is set aside to compensate victims or pay legal fees and other expenses. The settlement fund is a separate legal entity and must file its own tax return. The purpose of Form 1120-SF is to report the income, deductions, gains, and losses of the settlement fund. It is used to calculate the settlement fund's taxable income, which is subject to federal income tax. Any partnership that creates a settlement fund must file Form 1120-SF if it elects to be treated as a corporation for tax purposes. This includes Qualified Settlement Funds (QSFs), Designated Settlement Funds (DSFs), and other similar entities.
What Is Irs 1120 Sf Form?
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