Question

Match the following legal entities with the federal tax return the entity files.

A) Corporation - Form 1040
B) Partnership - Form 1065
C) Sole Proprietorship - Form 1120
D) LLC - Form 1120S

Answer 1

Legal entities must file specific tax forms: Corporations file Form 1120, Partnerships file Form 1065, Sole Proprietorships report on Schedule C of Form 1040, and LLCs file different forms based on their tax classification.

Step-by-step explanation:

The question pertains to matching different legal entities with the federal tax forms they are required to file. Here is the correct matching:

• A) Corporation - Form 1120
• B) Partnership - Form 1065
• C) Sole Proprietorship - Schedule C (Form 1040)
• D) LLC - This depends on the election made by the LLC; it can be a Form 1040 with Schedule C if it is treated as a disregarded entity, a Form 1065 if it operates as a partnership, or Form 1120 or Form 1120S if it is treated as a corporation.

Each of these tax forms represents the manner in which these entities report income, deductions, and credits to the IRS.