March 15 for the federal return, April 15 for North Carolina.
A calendar-year S corporation files Form 1120-S by the 15th day of the third month after year end, and furnishes Schedule K-1s to shareholders by the same date, as IRS Publication 509 lays out. For 2026, that is Monday, March 15, 2027. Form 7004 extends the return six months, to September 15, 2027.
The North Carolina S corporation return, Form CD-401S, is due on the 15th day of the fourth month, April 15. A federal extension also extends the state return when the Federal Extension box on the CD-401S is checked.
Owners who work in the business need a reasonable salary.
The IRS says an S corporation must pay a shareholder who works in the business reasonable compensation before making non-wage distributions, and it can reclassify distributions as wages subject to employment taxes. The factors it lists include:
- Training and experience.
- Duties and responsibilities.
- Time and effort devoted to the business.
- What the business pays non-shareholder employees.
- What comparable businesses pay for similar services.
Salary is paid through payroll, which is a separate service EJP Tax & Advisory does not provide. The return relies on the payroll records, so bring the year-end payroll reports and the owner's W-2.
North Carolina franchise tax comes with the state return.
North Carolina imposes a franchise tax on corporations for the privilege of doing business in the state, and S corporations report it on the same CD-401S as the income tax computation. Each shareholder also receives a North Carolina K-1 showing their share of income for the state return.
Bring the records the S corporation return depends on.
- Last year's Form 1120-S and North Carolina CD-401S, and any notices since.
- Year-end profit and loss statement and balance sheet.
- Year-end payroll reports and each owner's W-2.
- Distributions paid to each shareholder during the year.
- Changes in ownership or shareholder percentages.
- Purchases and sales of equipment, vehicles, or other business assets.
If the return shows a salary or distribution question worth revisiting, business consulting and tax planning is where owner pay and estimated payments get reviewed for the year ahead.
COMMON QUESTIONS
Questions you may have.
When is the 2026 Form 1120-S due?
Monday, March 15, 2027, for a calendar-year S corporation. Form 7004 extends it to September 15, 2027. The North Carolina CD-401S is due April 15.
Do S corporation owners have to take a salary?
A shareholder who works in the business must receive reasonable compensation before taking non-wage distributions, according to the IRS.
Does EJP Tax & Advisory run payroll?
No. Payroll is a separate service and is not included in business return preparation. Bring the year-end payroll reports, and the return is prepared from them.