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Form 1120-SPH: 1120 (Schedule PH)
Form 1120 Schedule PH is the Personal Holding Company (PHC) tax schedule attached to corporate Form 1120. It is used to calculate the 20% PHC tax on corporations that meet the personal holding company criteria for a tax year.
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IRS Form 1120-SPH - 1120 (Schedule PH)
Form 1120 Schedule PH is the Personal Holding Company (PHC) tax schedule attached to corporate Form 1120. It is used to calculate the 20% PHC tax on corporations that meet the personal holding company criteria for a tax year.
Risk Radar
Scan points- 1A single mis‑calculated PHC tax line can add a 20% penalty to your entire corporate tax bill.
- 2Mis‑identifying passive income versus active business income
- 3Incorrectly applying the 25% passive income threshold
- 4Failing to include all shareholder ownership percentages
- 5Omitting required adjustments for tax‑exempt interest
Plain English
If a corporation mainly earns passive income (like interest, dividends, rents) and most of its stock is owned by a few individuals, the IRS treats it as a personal holding company. Schedule PH works out the extra 20% tax that such a company must pay.
Submission Date
- Filing date: 2017-01-10 00:00:00
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use when the corporation meets both the passive‑income and stock‑ownership tests.
- Do not use if the corporation is a qualified personal service corporation.
- Check Form 1120‑F if the corporation is a foreign corporation with U.S. source income.
Form selector
Use this form or another form?
Corporation fails PHC tests
No extra PHC tax required
✓ Verify passive‑income calculation
Foreign corporation with U.S. income
Different filing rules
✓ Confirm residency status
Small business elects S‑corp status
PHC tax does not apply
✓ Ensure S‑corp election is in effect
Deadline or filing window
Schedule PH must be filed with the corporate return by the regular Form 1120 deadline (15th day of the 4th month after year‑end). Extensions for Form 1120 automatically extend Schedule PH as well. Late filing may incur penalties and interest on the PHC tax.
- —Passive income total | Sum of interest, dividends, rents, royalties | PHC taxable base | Verify inclusion of tax‑exempt interest
Checklist
What you need before filling it out
Part I – Passive income
Financial statements, interest statements · Income statement
Part I – Deductions
Expense ledger, rent schedules · Expense reports
Part II – Stock ownership
Shareholder ledger, stock certificates · Ownership register
PHC tax calculation
Schedule PH worksheet · Computed tax amount
Signature block
Officer’s signature authority document · Corporate resolution
Before you submit
- 1Confirm corporation meets both PHC tests
- 2Verify all passive income sources are included
- 3Reconcile shareholder ownership percentages to 100%
- 4Check that the tax year on Schedule PH matches Form 1120
- 5Calculate 20% tax on the correct base amount
- 6Attach Schedule PH securely to the completed Form 1120
- 7Sign the corporate return as required
- 8If e‑filing, run the software’s validation for Schedule PH
- 9Retain a copy of the attached Schedule PH for records
How to file this form
- 1Gather financial statements and shareholder ownership records
- 2Run the PHC eligibility test (25% passive income, 50% ownership)
- 3Complete Part I of Schedule PH with passive income and deductions
- 4Complete Part II to compute the PHC tax base and apply 20%
- 5Attach the completed Schedule PH to Form 1120
- 6Sign and date the corporate return
- 7Mail to the IRS address for Form 1120 or submit electronically
Known limitations
- 1Form instructions do not provide a built‑in calculator; manual math required
- 2Passive‑income definition may differ for certain tax‑exempt securities
- 3Shareholder ownership must be calculated at year‑end only
- 4The form does not capture state PHC taxes; separate state filings may be needed
Field map
Compact field-by-field guide
Entity Info
2 items
Full legal name of the corporation and its Employer Identification Number.
Current mailing address and date of incorporation.
Income
3 items
Total revenue from business operations before deducting costs.
Direct costs attributable to producing goods sold by the corporation.
Gross receipts minus cost of goods sold and returns/allowances.
Deductions
1 items
Sum of all business expenses including compensation, rent, interest, taxes, and depreciation.
Tax
2 items
Total income minus total deductions.
Tax calculated on taxable income using the applicable corporate tax rate, minus any credits.
Signatures
1 items
An authorized corporate officer must sign and date the return.
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Fillable formOpen in Editor->Form 1120 Schedule PH is currently in the 2024 edition, reflecting the tax year 2023 filing requirements. Verify the edition date before using the form.
What changed or needs a fresh check
- Edition date – confirm the form is the 2024 edition
- Fee – no filing fee for Schedule PH itself; corporate return fee applies
- Mailing address – use the address in the Form 1120 instructions for your state
- Electronic filing – ensure your software supports Schedule PH attachment
- Signature line – corporate officer must sign the attached Form 1120
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed Form 1120 and attached Schedule PH for at least seven years
- 2Monitor IRS notices for any PHC tax adjustments
- 3Reconcile the PHC tax payment with corporate cash‑flow records
- 4Update shareholder ownership records for the next tax year
- 5If an extension was filed, verify the extended deadline was honored
- 6Prepare for possible audit by organizing supporting documents
Sources
- SRCIRS Form 1120 Schedule PH instructionseligibility tests
- SRCIRS Publication 542Corporations – PHC definition
- SRCIRS Form 1120 filing deadline15th day of 4th month after year‑end
- SRCIRS e‑file guidelines for Schedule PH attachment
- SRCIRS penalty rules for PHC tax underpayment
- SRCNot clearly stated in the provided official sourceexact fee amount for Schedule PH
- SRCNot clearly stated in the provided official sourcestate‑specific PHC filing requirements
Common confusion points
Passive vs. active income
Income categories overlap
→ Review IRS definitions in instructions
25% threshold calculation
Some taxpayers include tax‑exempt interest incorrectly
→ Exclude tax‑exempt interest from the numerator
Ownership test timing
Whether to use beginning‑year or end‑year percentages
→ Use end‑of‑tax‑year ownership
Schedule attachment
Forgetting to attach when e‑filing
→ Confirm software shows Schedule PH attached
Tax‑exempt interest treatment
Appears on Schedule B but not taxable
→ Verify it is excluded from PHC base
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 2210 – Underpayment of Estimated Tax Penalty
Source transparency
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