Who needs the 1125A Form?
The full name of the form 1125-A is the Cost of Goods Sold. The 1125A form is the United States Internal Revenue service form that should be completed by the following categories of taxpayers:
- Domestic Corporation (those that muts also file form 1120);
- All types of corporations operating on a cooperative basis that are required to file form 1120-C;
- Foreign corporations doing business in the US that use form 1120-F;
- S-corporations that submit form 1120-S;
- Partnerships and electing large partnerships that submit forms 1065 and 1065-B, respectively.
What is the purpose of the IRS form 1125A?
All deductions for the cost of goods sold must be reported on the 1120-A.
Is the 1125-A form accompanied by any other forms?
The completed report on the cost of goods sold must be attached to the corresponding document indicated above, depending on the type of the filer.
When is the 1125-A form due?
Because of the requirement to file the 1120-A form as an attachment to either 1120, or 1120-C, or 1120-F, or 1120-S or 1065 or 1065-B form, the due date for the submission of the 1120-A form should be the same as those documents. It is the fifteenth day of the fourth month after the end of the fiscal year.
How to fill out the Cost of Goods Sold form?
The form consists of three pages. Two of these pages are the instructions that are supposed to help the filer complete the form.
The following details are requested on the form 1120-A:
- Name of the reporting organization;
- Employer identification number (EIN);
- The comparison of the inventory at the beginning of the year to the one of the end of the year;
- Cost of labor and additional costs;
- Cost of goods sold;
- Method used to evaluate the cost of closing inventory,etc.
Where to send the filled out 1120-A form?
The completed document and the required schedules (if any) must be attached to the corresponding primary return form and filed with the local IRS office.