Schedule G (Form 1120), Information on Certain Persons Owning the Corporation's Voting Stock, lists the entities, individuals and estates that own directly 20% or more, or own directly or indirectly 50% or more, of the total voting power of a corporation's stock. Every corporation that answers Yes to Form 1120, Schedule K, question 4a or 4b must attach it. The tricky part is indirect ownership, because stock held through partnerships, other companies or close family can count.
Everything below comes from the IRS's Schedule G (Form 1120) (Rev. December 2011), which is still the current revision, and the 2025 Form 1120 and instructions, as of October 2026.
The two Schedule K questions that trigger it
| Schedule K question | Asks whether | Completed on |
|---|---|---|
| 4a | Any foreign or domestic corporation, partnership, trust or tax-exempt organization owns directly 20% or more, or directly or indirectly 50% or more, of the voting power | Schedule G, Part I |
| 4b | Any individual or estate owns directly 20% or more, or directly or indirectly 50% or more, of the voting power | Schedule G, Part II |
Answer No to both and you don't attach Schedule G. Answer Yes to either and it's required with Form 1120.
What each part asks for
| Part I: entities | Part II: individuals and estates |
|---|---|
| Name of entity | Name of individual or estate |
| Employer identification number, if any | Identifying number, if any |
| Type of entity | Country of citizenship |
| Country of organization | Percentage owned in voting stock |
| Percentage owned in voting stock |
Only voting power counts. The Form 1120 instructions say 'stock' generally leaves out stock that is nonvoting, nonconvertible, limited and preferred as to dividends, and limited on redemption and liquidation rights.
How indirect ownership works
Schedule G uses the constructive ownership rules of section 267(c), excluding 267(c)(3). Two rules do most of the work:
- Stock owned by or for a corporation, partnership, estate or trust is treated as owned proportionately by its shareholders, partners or beneficiaries.
- An individual is treated as owning stock owned by their family, meaning only their spouse, brothers, sisters, ancestors and lineal descendants.
Here's the limit on the family rule that people miss: an individual isn't treated as owning a family member's stock unless they also own an interest in the corporation themselves, directly or through a corporation, partnership or trust.
The IRS's worked example
Corporation A owns 50% of Partnership B, and 15% of the voting stock of Corporation D directly. Partnership B owns 70% of Corporation D's voting stock. So A owns 35% of D indirectly through B, which is 50% of 70%, plus its 15% directly, for 50% in total.
| Owner | Direct | Indirect | Total | Reported by Corporation D? |
|---|---|---|---|---|
| Partnership B | 70% | None | 70% | Yes, Part I, direct 20% or more |
| Corporation A | 15% | 35% | 50% | Yes, Part I, directly or indirectly 50% or more |
A second example in the instructions shows the family limit. If a parent owns 50% of Corporation X and their daughter owns nothing in X, directly or through any entity, the family rules don't attribute the parent's shares to the daughter, so she isn't reported.
When the family rule does apply
The instructions' third example shows the other side. A owns 50% of Corporation X directly. Their daughter B owns nothing directly, but she's the sole beneficiary of Trust T, which holds 10% of X's voting stock. Because B now has an interest of her own through the trust, the family rules switch on: A's 50% is attributed to B and B's 10% to A. Each is treated as owning 60%, so both appear in Part II.
Special cases in Parts I and II
- Ownership is measured at the end of the tax year.
- For an affiliated group filing a consolidated return, list the parent corporation, not the subsidiary members.
- List the owner of a disregarded entity rather than the disregarded entity itself; if that owner is an individual, they go in Part II.
- For an estate in Part II, the country of citizenship is the decedent's citizenship.
- Type of entity in Part I means corporation, partnership, trust or tax-exempt organization.
Filling it in, step by step
- Map every owner of voting stock, including partnerships, trusts and companies that hold shares for others.
- Trace each chain upward, multiplying percentages through each entity, as in the example above.
- Apply the family rules only to individuals who own some interest themselves.
- List anyone at 20% or more directly, or 50% or more directly and indirectly combined.
- Put entities in Part I and individuals and estates in Part II, then attach the schedule to Form 1120.
Why it matters
Schedule G is how the IRS sees who controls a corporation, and the same 20% and 50% tests run through other Schedule K questions about the corporation's own holdings in other entities. The balance sheet on Schedule L also has separate lines for loans to and from shareholders. Getting the ownership map right once keeps all of those answers consistent.
The verdict
For a corporation owned by one or two people, Schedule G takes five minutes. For anything with holding companies, partnerships or family members in the chain, draw the ownership tree first and multiply through it, because the 50% indirect test catches owners you won't spot from the share register alone.
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Another attachment to the corporate return lists what officers receive, as my officer compensation form guide explains.
Frequently asked questions
What is Form 1120 Schedule G?
It's the schedule listing certain entities, individuals and estates that own the corporation's voting stock, required when Schedule K question 4a or 4b is answered Yes.
What ownership triggers Schedule G?
Owning directly 20% or more, or directly or indirectly 50% or more, of the total voting power of all classes of the corporation's voting stock.
Which family members count for Schedule G?
Only a spouse, brothers, sisters, ancestors and lineal descendants, and only if the individual also owns an interest in the corporation directly or indirectly.
Is nonvoting stock counted on Schedule G?
No. Schedule G is about voting power, and the Form 1120 instructions generally exclude nonvoting, nonconvertible, limited preferred stock.
Which part of Schedule G is for individuals?
Part II, for individuals and estates; Part I is for corporations, partnerships, trusts and tax-exempt organizations.
How do I list a disregarded entity on Schedule G?
List the owner of the disregarded entity rather than the entity itself, and if the owner is an individual, list them in Part II.
Is there a newer revision of Schedule G?
The current form is Rev. December 2011, as fetched from the IRS in October 2026.
