+ Sch K due June 22 4 points max, 3.4 points for good work that meets requirements As you have learned in previous assignments, an S corporation generally does not pay taxes on its own. It is a flow-through entity, and the owners pay taxes directly. Notice that line 22 relates to special taxes, but there is no regular tax line as there is in the Form 1120 for a C corporation. 1. Briefly describe two special taxes in line 22 that apply for an S corporation (Hint: refer to the instructions to form 1120S) 2. Schedule K is very important for S corporations (1120S) and partnerships (Form 1065). Explain the role and important of this Schedule. 3. Why is there no Schedule K for a C-corporation (Form 1120 actually has a Schedule K but it serves a different purpose than the one for S corporations (1120S) and partnerships (1065). Explain why a C-corporation does not complete a Schedule K that looks like that of an S corporation or a partnership. 4. Schedule K-1 (google this; for both S-Corporations and partnerships) is closely related to Schedule K. Explain what K-1 is and its relationship with Schedule K. 5. How many Schedules K-1's must an S-Corporation or partnership fill out? 6. Who gets a copy of Schedule K-1?