Information Returns

            An information return is a return filed by a company or certain trusts that provides information to the IRS regarding the entity’s activities. However, no tax is due with the return, and the entity filing the return generally has no income tax liability. Rather, income taxes are paid by the entity’s owners or, in the case of certain trusts, by the grantor or the trust’s beneficiaries.

The following are examples of information returns:

IRS form 1065 (partnership return)

IRS form 1120 S (S corporation return)

IRS form 3520 (foreign trust return)