IRS Form 1125-A is used by businesses and corporations to figure and report the cost of goods sold to deduct it from their federal income taxes.
Our fillable Form 1125-A makes the filing process easier. Complete it online in our PDF editor, and download it to your device. The entire process shouldn’t take more than a couple of minutes.
IRS Form 1125-A is used by businesses and corporations to figure and report the cost of goods sold to deduct it from their federal income taxes.
Our fillable Form 1125-A makes the filing process easier. Complete it online in our PDF editor, and download it to your device. The entire process shouldn’t take more than a couple of minutes.
Form 1125-A is used to calculate and report the cost of goods sold in order to lower a business’s overall tax liability. Cost of goods sold is essentially the cost required to produce or purchase the products that the business sells.
All businesses and corporations that file Forms 1120, 1120-C, 1120-F, 1120-S, or 1065 and want to report a deduction for cost of goods sold on these forms must use 1125-A. Usually, these are corporations, partnerships, and S corporations.
Service businesses that do not produce or sell physical goods generally do not have a cost of goods sold and do not need to file Form 1125-A.
Form 1125-A due date is the same as the due date of the principal form it’s attached to. In other words, there’s no single, unifying Form 1125-A deadline; it depends on the entity type and the income tax return it must file.
Here are the possible options:
For entities that follow calendar year taxation, these dates are 15th March, 15th April, and 15th September, respectively.
If Form 1125-A isn’t submitted, any claims related to the cost of goods on the federal income tax return will be unsubstantiated and may trigger additional IRS audits and scrutiny. If the tax amount included on the return is incorrect, you may face an accuracy-related penalty, which is equal to 20% of the portion of the underpayment tax.
You should file Form 1125-A with the IRS, using the same method and address that you use for filing the principal form. Attach it to the main income tax return and submit it to the designated address or file online.
You can get a blank Form 1125-A from pdf.net or the official IRS website. In either case, you can fill out the document in our PDF editor and prepare it for submission.
Yes, you can submit Form 1125-A electronically using the Modernized e-File (MeF) platform. However, this form can’t be submitted as a standalone, so you must attach it to an income tax return.
If your Form 1125-A is missing information, you’ll have to submit a new, corrected form with an amended tax return. So, for example, partnerships will file 1065-X and corporations 1120-X to deliver the properly completed document.
To avoid potential complications and delays, use an official Form 1125-A example as guidance when completing your own form.
You can fill out your Form 1125-A online by opening it in our PDF editor and typing information directly into the designated slots.
This form is free to view and edit, but you can’t download it without a subscription plan. You’ll find additional information on our pricing page.
Yes, you can correct mistakes on Form 1125-A if you follow the same process as when adding missing information. Essentially, you need to submit an amended tax return with a new, properly filled-out form attached.
Form 1125-A is processed together with your main tax return, so the processing time is the same, too. In other words, typically it takes 21 days for electronic filings and 6–8 weeks for paper filings.