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Set up the payments as going to an asset account, like Prepaid Federal Income Tax.
The only deductible taxes will be state taxes paid in the year in question (state taxes paid in 2012 are deductible in 2012).
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As an asset account, it won't show as a negative, right?
So, now state related income, payroll, etc. taxes are deductible, right?
401k contributions would be deductible for portion of company, right (for s corp)?