S Corporation Tax Return Preparation in Denver

CPA of Denver prepares federal Form 1120-S and Colorado S corporation tax returns for owner-operated businesses. We coordinate the entity return with shareholder reporting, payroll, basis, distributions, estimated taxes, and related individual tax filings.

Compare S Corporation Preparation Options

Scope before checkout: Discussing payroll, shareholder basis or accounting issues on this page does not mean corrective work is included in the fixed fee. Payroll corrections, bookkeeping reconstruction and complex basis work require a separate scope review. Contact us before paying if these issues apply.

Organize your documents with our Colorado S corporation tax filing checklist.

Current engagement scopes for Form 1120-S preparation

Scope	No balance sheet	With balance sheet
Service	No-balance-sheet return	Balance-sheet return
Included reporting	Federal Form 1120-S, K-1 preparation and electronic filing	Federal Form 1120-S, Schedule L, and Schedules M-1 and M-2
Listed limits	Up to two shareholders and one state return	Up to two shareholders and one state return
Outside the listed scope	Schedule L, M-1 or M-2 reconstruction; bookkeeping cleanup; payroll corrections; multiple states; late-election or reasonable-cause work	Bookkeeping reconstruction; unreconciled accounts; payroll corrections; multiple states; complex basis studies or elections

Review the current fee and full scope in the engagement section before paying. If your records need cleanup or you are unsure which service fits, contact CPA of Denver first.

Records to gather: the prior-year return, year-end financial statements, payroll reports, fixed-asset records, and shareholder contributions, distributions and loan records. For the balance-sheet service, include beginning and ending balance sheets and supporting account reconciliations.

For background, read the Form 1120-S guide and the Schedule L and balance-sheet guide.

Denver S Corporation Tax Preparation

An S corporation return is more than Form 1120-S. The return should reconcile to the books, payroll records, shareholder activity, prior-year basis information, and Schedule K-1 reporting. Coordinated preparation can reduce inconsistencies between the business and shareholder returns.

Colorado S Corporation Filing Requirements: Federal and State Returns

An S corporation uses federal Form 1120-S to report income, deductions and other tax items, with Schedule K-1 reporting for shareholders. Colorado also requires an S corporation doing business in the state to file Form DR 0106. Preparing the federal return does not replace the Colorado filing.

We review the applicable return year, state activity, shareholder information and accounting records when defining the engagement. If your return needs Schedule L and standard book-to-tax reconciliation, review the S corporation service with balance-sheet reporting. Bookkeeping cleanup, payroll corrections and additional states require a separate scope review.

Official references: IRS Form 1120-S guidance and the Colorado DR 0106 instructions for tax year 2025. Use the instructions for the year being filed.

Form 1120-S and Schedule K-1 Preparation

• Federal Form 1120-S
• Colorado S corporation filings
• Schedule K-1 preparation
• Shareholder basis and distributions
• Officer compensation and payroll coordination
• Depreciation and fixed assets
• Estimated tax and owner-return coordination

S Corporation Tax Issues We Review

• Shareholder stock and debt basis
• Distributions in excess of basis
• Reasonable compensation and payroll
• More-than-2% shareholder health insurance
• Shareholder loans and repayments
• Asset purchases and depreciation
• Ownership changes
• Prior-year suspended losses

When a Balance Sheet Return Is Required

Some S corporations require Schedule L and book-to-tax reconciliation on Schedules M-1 and M-2. If your return requires balance-sheet reporting or more extensive accounting reconciliation, review our S corporation return with balance sheet service.

Coordinate the S Corporation and Shareholder Returns

Preparing the business and shareholder returns together helps coordinate Schedule K-1 income, shareholder basis, distributions, retirement contributions, payroll, and estimated tax payments.

Frequently Asked Questions

What records are needed for an S corporation return?

Typical records include year-end financial statements, a general ledger, bank and credit-card reconciliations, payroll reports, fixed-asset purchases, shareholder transactions, and the prior-year return.

Do S corporation owners need payroll?

An owner who performs services generally must consider reasonable compensation through payroll. The appropriate amount depends on the facts.

Can you prepare the shareholders’ personal returns too?

Yes. Coordinating the S corporation and individual returns helps keep Schedule K-1 income, basis, estimated payments, and planning items consistent.

Related Tax Services

• LLC Tax Preparation
• Individual Tax Preparation
• Tax Planning