What Federal tax form is used by corporations to file their annual return of income?

The correct answer is the form used by corporations to report their income to the Internal Revenue Service (IRS). Form 1120 is specifically designed for corporations to detail their income, gains, losses, deductions, and credits, and to determine their tax liability on corporate income. This form is critical for corporate taxation in the United States, as it provides a comprehensive account of a corporation's financial activities over the taxable year.

In contrast, the other forms mentioned serve different purposes. The W-4 is utilized by employees to inform their employers about how much tax to withhold from their paychecks. Form 1040 is the standard individual income tax return form used by individuals to report their personal income and calculate their tax liability. Form 1099 is used to report various types of income received other than wages, salaries, and tips, often involving payments made to independent contractors or freelancers.

Understanding the specific function of each tax form helps distinguish the proper form for corporations versus those meant for individuals or specific types of income reporting. In the context of corporate taxation, Form 1120 is essential for compliance with federal tax laws.