U.S. Income Tax Return for an S Corporation OMB No. 1545-0130

Form 1120S

For calendar year 2006 or tax year beginning , 2006, ending , 20

Department of the Treasury

Internal Revenue Service © See separate instructions.

Effective date of S

election

A Name C Employer identification number Use

IRS

label.

Otherwise,

print or

type.

Number, street, and room or suite no. If a P.O. box, see instructions. D Date incorporated

Business activity

code number (see

instructions)

B

City or town, state, and ZIP code E Total assets (see instructions)

$

F Check if: Initial return Final return Address change Amended return

G Enter the number of shareholders in the corporation at the end of the tax year ©

Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a Gross receipts or sales b Less returns and allowances 1c

2 Cost of goods sold (Schedule A, line 8) 2

3 Gross profit. Subtract line 2 from line 1c 3

4 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 4

Income

5 Other income (loss) (see instructions—attach statement) 5

6 Total income (loss). Add lines 3 through 5 © 6

7 Compensation of officers 7

8 Salaries and wages (less employment credits) 8

9 Repairs and maintenance 9

10 Bad debts 10

11 Rents 11

12 Taxes and licenses 12

13 Interest 13

14 Depreciation not claimed on Schedule A or elsewhere on return (attach Form 4562) 14

15 15 Depletion (Do not deduct oil and gas depletion.)

Advertising 16 16

17 17 Pension, profit-sharing, etc., plans

Employee benefit programs 18 18

Deductions (see instructions for limitations)

19 19 Other deductions (attach statement)

20 Total deductions. Add lines 7 through 19 © 20

21 Ordinary business income (loss). Subtract line 20 from line 6 21

Excess net passive income or LIFO recapture tax (see

instructions)

22a

22a

b Tax from Schedule D (Form 1120S) 22b

Add lines 22a and 22b 22c c (see instructions for additional taxes)

23a 2006 estimated tax payments and 2005 overpayment credited to

2006 23a

b Tax deposited with Form 7004 23b

c Credit for federal tax paid on fuels (attach Form 4136)

e Add lines 23a through 23d

Tax and Payments

24 Estimated tax penalty (see instructions). Check if Form 2220 is attached © 24

25 Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed 25

26 Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid 26

27 Enter amount from line 26 Credited to 2007 estimated tax © Refunded © 27

Paid

Preparer’s

Use Only

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H Form 1120S (2006)

c Bal ©

23c

23e

© Do not file this form unless the corporation has filed Form 2553

to elect to be an S corporation.

(1) (2) (3) Name change (4) (5)

Date Preparer’s SSN or PTIN Preparer’s

signature

Check if

self-employed

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Phone no. ( )

©

©

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,

correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Sign

Here

Signature of officer Date Title

May the IRS discuss this return

with the preparer shown below © © (see instructions)? Yes No

2006

H Check if Schedule M-3 is required (attach Schedule M-3) ©

d Credit for federal telephone excise tax paid (attach Form 8913) 23d
Form 1120S (2006) Page 2

Cost of Goods Sold (see instructions)

1 Inventory at beginning of year

2 Purchases

3 Cost of labor

4 Additional section 263A costs (attach statement)

Other costs (attach statement)

Total. Add lines 1 through 5

5

Inventory at end of year

6

Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2

7

9a Check all methods used for valuing closing inventory: (i) Cost as described in Regulations section 1.471-3

(ii) Lower of cost or market as described in Regulations section 1.471-4

(iii) Other (Specify method used and attach explanation.) ©

c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ©

d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing 

inventory computed under LIFO 9d

e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? Yes No

f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? No

Other Information (see instructions) Yes No

At the end of the tax year, did the corporation own, directly or indirectly, 50% or more of the voting stock of a domestic 

corporation? (For rules of attribution, see section 267(c).) If “Yes,” attach a statement showing: (a) name and employer 

identification number (EIN), (b) percentage owned, and (c) if 100% owned, was a QSub election made? 

3

2 See the instructions and enter the:

a Business activity ©

4 Was the corporation a member of a controlled group subject to the provisions of section 1561?

5

1 Check accounting method: a Cash b Accrual c Other (specify) ©

Has this corporation filed, or is it required to file, a return under section 6111 to provide information on any reportable

transaction?

6 Check this box if the corporation issued publicly offered debt instruments with original issue discount ©

If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount 

Instruments.

If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an

asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a

C corporation and (b) has net unrealized built-in gain (defined in section 1374(d)(1)) in excess of the net recognized

built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior 

years © $

Enter the accumulated earnings and profits of the corporation at the end of the tax year.

Schedule A

Schedule B

Yes

8

If “Yes,” attach explanation.

7

8

1

2

3

4

5

6

7

8

b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) ©

Form 1120S (2006)

Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it

may be required to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.

Are the corporation’s total receipts (see instructions) for the tax year and its total assets at the end of the tax year

less than $250,000? If “Yes,” the corporation is not required to complete Schedules L and M-1.

9

Dividends: a Ordinary dividends

Shareholders’ Pro Rata Share Items Total amount

1 Ordinary business income (loss) (page 1, line 21) 1

2 Net rental real estate income (loss) (attach Form 8825) 2

3a Other gross rental income (loss) 3a

b Expenses from other rental activities (attach statement) 3b

c Other net rental income (loss). Subtract line 3b from line 3a 3c

4 Interest income 4

5 5a

6 Royalties 6

Income (Loss)

7

8a 8a

Schedule K

7

9

10 10

Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) 

Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) 

Net section 1231 gain (loss) (attach Form 4797)

Collectibles (28%) gain (loss) 8b

c Unrecaptured section 1250 gain (attach statement) 8c

b

b Qualified dividends

9

5b

b Product or service ©

Other income (loss) (see instructions) Type ©

$
Form 1120S (2006) Page 3

11 Section 179 deduction (attach Form 4562) 11

12a

13a Low-income housing credit (section 42(j)(5)) 13a

Low-income housing credit (other)

c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) 13c

d Other rental real estate credits (see instructions) 13d

e Other rental credits (see instructions) 13e

f Credit for alcohol used as fuel (attach Form 6478) 13f

g Other credits (see instructions) 13g

15a 15a

b Adjusted gain or loss 15b

15c

Post-1986 depreciation adjustment

c Depletion (other than oil and gas)

d Oil, gas, and geothermal properties—gross income 15d

Alternative

Minimum Tax

(AMT) Items

Oil, gas, and geothermal properties—deductions 15e

f Other AMT items (attach statement) 15f

14a Name of country or U.S. possession ©

Foreign gross income sourced at corporate level

c

Deductions allocated and apportioned at shareholder level

l Total foreign taxes (check one): © Paid Accrued

Foreign Transactions

Gross income sourced at shareholder level

Form 1120S (2006)

d Passive

e Listed categories (attach statement)

f General limitation

g Interest expense

h Other

Deductions allocated and apportioned at corporate level to foreign source income

i Passive

j

k General limitation

14d

14e

14f

14i

14j

14k

14g

14h

14l

Listed categories (attach statement)

b Gross income from all sources 14b

m

14c

e

Deductions Credits

Contributions

b

Other deductions (see instructions)

Section 59(e)(2) expenditures

d

Investment interest expense

c (2) Amount ©

12a

12b

12d

b 13b

n Other foreign tax information (attach statement)

Other information

14m

16a 16a

b Other tax-exempt income 16b

16c

Tax-exempt interest income

c Nondeductible expenses

d Property distributions 16d

Items Affecting

Repayment of loans from shareholders 16e

Shareholder

Basis

e

17a Investment income 

Investment expenses 

c Dividend distributions paid from accumulated earnings and profits

d Other items and amounts (attach statement)

Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right

column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l

18

Other 

Information

b

17a

17b

17c

18

(1) Type ©

Shareholders’ Pro Rata Share Items (continued) Total amount

Type ©

Type ©

Type ©

Reduction in taxes available for credit (attach statement)

Type ©

12c(2)

Reconciliation
Form 1120S (2006) Page 4

Balance Sheets per Books Beginning of tax year End of tax year

(b) (c) (d) Assets

1 Cash

2a Trade notes and accounts receivable

b Less allowance for bad debts

3 Inventories

4 U.S. government obligations

5 Tax-exempt securities (see instructions)

6 Other current assets (attach statement)

7 Loans to shareholders

8 Mortgage and real estate loans

9 Other investments (attach statement)

10a Buildings and other depreciable assets

b Less accumulated depreciation

11a Depletable assets

b Less accumulated depletion

12 Land (net of any amortization)

13a Intangible assets (amortizable only)

b Less accumulated amortization

14 Other assets (attach statement)

15 Total assets

Liabilities and Shareholders’ Equity

16 Accounts payable

17 Mortgages, notes, bonds payable in less than 1 year

18 Other current liabilities (attach statement)

19 Loans from shareholders

20 Mortgages, notes, bonds payable in 1 year or more

21 Other liabilities (attach statement)

22 Capital stock

23 Additional paid-in capital

24 Retained earnings

26 Less cost of treasury stock ( ) ( )

27 Total liabilities and shareholders’ equity

Reconciliation of Income (Loss) per Books With Income (Loss) per Return

Income recorded on books this year not included

on Schedule K, lines 1 through 10 (itemize):

1 Net income (loss) per books 5

Income included on Schedule K, lines 1, 2, 3c, 4,

5a, 6, 7, 8a, 9, and 10, not recorded on books this 

year (itemize): 

2

a Tax-exempt interest $

Expenses recorded on books this year not

included on Schedule K, lines 1 through 12

and 14l (itemize):

3 Deductions included on Schedule K, lines 

1 through 12 and 14l, not charged against 

book income this year (itemize):

6

a Depreciation $ a Depreciation $

b Travel and entertainment $

7 Add lines 5 and 6

4 Add lines 1 through 3 8 Income (loss) (Schedule K, line 18). Line 4 less line 7

Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’

Undistributed Taxable Income Previously Taxed (see instructions)

(a) Accumulated

adjustments account

(b) Other adjustments

account

(c) Shareholders’ undistributed

taxable income previously taxed

1 Balance at beginning of tax year

2 Ordinary income from page 1, line 21

3 Other additions

( ) 4 Loss from page 1, line 21

( ) ( ) 5 Other reductions

6 Combine lines 1 through 5

7 Distributions other than dividend distributions

8 Balance at end of tax year. Subtract line 7 from line 6

Schedule M-2

Schedule M-1

Schedule L

(a)

25 Adjustments to shareholders’ equity (attach statement)

Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

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