Discussion:S CORP OFFICER SALARY
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Test Area --> S CORP OFFICER SALARY
| 28 January 2006 | |
| A new client brought in previous 4 years worth of tax returns..... | |
Tanyabasst (talk|edits) said: | 27 August 2007 |
| I am 100% owner of an S-corp that I do not participate in at all. My husband does all of the work. For the first year we lost money and paid no salary or distributions, the second year we paid 19000 distributions to me and 10500 salary to my husband and 2000 salary to me, last year we paid 48000 in distributions to me and 12000 salary to hubby. Oops! I was working another job full time and out of ignorance never increased his pay. We have 0 reported in the line 7 of the 1120S for two of the three years. This year I need to get into compliance. Do I transfer ownership to him and pay him all of the salary even though the distributions we paid so far this year were to me? I paid 48000 distributions to me so far. Do I pretend I work for the company and pay all salary to me? My accountant told me that paying hubby was the same as paying myself but on the taxes she shows no income to the officer which is a red flag. He is an officer but not an owner. Should I amend the return to show pay as pay to officer? Do I give him partial ownership and pay him some distribution and all of the salary? I have no idea what to do. | |
To join in on this discussion, you must first
log in.
