Specific Instructions (Schedule K-1 Only)

General Information Generally, the corporation is required to prepare and give a Schedule K-1 to each person who was a shareholder in the corporation at any time during the tax year. Schedule K-1 must be provided to each shareholder on or before the day on which the corporation’s Form 1120-S is required to be filed.

How To Complete Schedule K-1

If the return is for a fiscal year or a short tax year, fill in the tax year space at the top of each Schedule K-1. On each Schedule K-1, enter the information about the corporation and the shareholder in Parts I and II (items A through I). In Part III, enter the shareholder’s pro rata share of each item of income, deduction, and credit and any other information the shareholder needs to prepare the shareholder’s tax return, including information needed to prepare state and local tax returns. Use 10-point Helvetica Light Standard font (if possible) for all entries if you are typing or using a computer to complete Schedule K-1.

Codes. In boxes 10, 12, 13, and 15 through 17, identify each item by entering a code in the left column of the entry space. These codes are identified in these instructions and on the List of Codes in the Shareholder’s Instructions for Schedule K-1 (Form 1120-S).

Attached statements. When attaching statements to Schedule K-1 to report additional information to the shareholder, indicate there is a statement depending upon the following.

• If an amount can be input on Schedule K-1 but additional information is required so the shareholder can determine the proper reporting, enter an asterisk (*) after the code in the left column of the entry space.

• For items that can’t be reported as a single dollar amount, enter the code and asterisk (*) in the left column and enter “STMT” in the right column to indicate that the information is provided on an attached statement.

Instructions for Form 1120-S (2025) 25

• If the corporation has more coded items than the number of entry boxes (for example, boxes 10, 12, 13, or 15 through 17), don’t enter a code or dollar amount in the last box. Instead, enter an asterisk (*) in the left column and enter “STMT” in the entry space to the right.

More than one attached statement can be placed on the same sheet of paper. The information included in the statement should be identified in alphanumeric order by box number followed by the letter code (if any), description, and dollar amount. For example: “Box 13, code J—Work opportunity credit—$1,000.” This can be followed with any additional information that the shareholder needs to determine the proper tax treatment of the item.

Caution: For electronically filed returns, the corporation must follow the instructions for attached statements as described in Pub. 4164 when reporting the additional information that may be required for each respective box. See Pub. 4164, Modernized e-File (MeF) Guide for Software Developers and Transmitters, for more information.

Special Reporting Requirements for At-Risk Activities

If items of income, loss, or deduction from more than one at-risk activity are reported on Schedule K-1, the corporation must provide its shareholders with separate information for each activity. See At-Risk Activity Reporting Requirements under At-Risk Limitations , earlier, for details.

Special Reporting Requirements for Corporations With Multiple Activities

If items of income, loss, deduction, or credit from more than one activity (determined for purposes of the passive activity loss and credit limitations) are reported on Schedule K-1, the corporation must provide information separately for each activity to its shareholders. See Passive Activity Reporting Requirements , earlier, for details on the reporting requirements.