# Form 1125-A

URL: https://pdf.net/pdf-forms/tax-forms/form-1125-a
Category: Tax Forms
Attributes: Trusted by accountants, Official IRS form, Filed annually

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.

## Versions

- 2024 — [download PDF](https://cdn.sanity.io/files/i16te7yp/production/c3b449771c17496d2dd3bcb1d1f32d92b69b4f4f.pdf)

## How to Fill Out Form 1125-A

1. Open IRS Form 1125-A in our PDF editor.
2. Add the entity’s name and EIN in the first line.
3. Calculate the cost of goods sold according to the Form 1125-A instructions.
4. Attach the document to an appropriate tax return form.
5. File the package with the IRS.

## Facts

### What Is Form 1125-A Used For?

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.

### Who Should Use Form 1125-A?

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.

### When Is Form 1125-A Due?

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:

- 15th day of the 3rd month after the end of the tax year for entities that file Forms 1120-S and 1065.
- 15th day of the 4th month after the end of the tax year for entities that file Forms 1120, 1120-F, and 1120-C.
- 15th day of the 9th month after the end of the tax year for entities that file Form 1120-C and are classified as a cooperative association.

For entities that follow calendar year taxation, these dates are 15th March, 15th April, and 15th September, respectively.

### What Happens If Form 1125-A Is Not Submitted?

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.

### How and Where Do I File Form 1125-A?

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.