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Virginia Department of Taxation Corporation and Pass-Through Entity e-File Test Package Tax Year 2014 Rev. 11/25/2014 Overview This publication provides scenarios for the Software Vendors / Developers
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What is corporation and pass-through entity?
Corporation is a legal entity that is separate from its owners, while pass-through entity is a business structure that doesn't pay income tax at the corporate level.
Who is required to file corporation and pass-through entity?
Corporations are required to file a corporate tax return (Form 1120), while pass-through entities are required to file an information return (Form 1065 or Form 1120S) and issue K-1s to their owners.
How to fill out corporation and pass-through entity?
Corporations and pass-through entities must report their income, expenses, deductions, and credits on the appropriate tax forms provided by the IRS.
What is the purpose of corporation and pass-through entity?
The purpose of a corporation is to protect the owners' personal assets from business debts and liabilities, while the purpose of pass-through entities is to pass income and losses through to the owners' individual tax returns.
What information must be reported on corporation and pass-through entity?
Corporations and pass-through entities must report income, deductions, credits, and any other relevant financial information to the IRS.
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