S Corporation Tallinn hotelsAn S corporation is a qualifying corporation that chooses to haveits income taxed to the shareholders rather than to the corporationitself, except as noted next under Taxes. Its shareholderswill then include in income their share of the corporation'snonseparately stated income or loss and separately stated items ofincome, deduction, loss, and credit. ERROR MSGTo make this election, a corporation, in addition to otherrequirements, must not have more than 75 shareholders. Each of itsshareholders must also consent to the election. Taxes.Hotel Radission TriesenbergAlthough it is generally not liable for federal income tax itself,an S corporation may have to pay the following taxes. Strasbourg luxury hotelsA tax on: Excess passive investment income, Certain capital gains, or Built-in gains. The tax from recomputing a prior year's investmentcredit. LIFO recapture tax. An S corporation may have to make quarterly estimated tax paymentsfor these taxes. Form 1120S.An S corporation files its return on Form 1120S. More information.For more information on S corporations, see the instructions forForm 1120S.