Your question did not seem to post completely. It cut off after "my question is, assuming I get the ......"
Could you please provide more detail on what you need to know.
My question is, assuming I get the IRS approval, how will those pre-April 23 profits be treated/taxed? As dividends to me, in which case I assume they’ll be exempt from FICA? Or should I be on the safe side and pay FICA tax on them? But if I did the latter, wouldn’t I have to file a Schedule C? And if I filed a Schedule C, wouldn’t those pre-April 23 revenues not be counted when determining the profit for the s-corp?
Note that I plan to use TurboTax Business to do my s-corp taxes.
If you get the approval from the IRS, which you will likely receive, then you will treat the entire year as S Corp status. The withdrawals that you took earlier in the year from the profits can simply be declared as dividends, and you are correct that FICA taxes will not be paid on those amounts. You may have additional dividends from later in the year as well depending on how much profit your business had.
With S Corp status, all the IRS requires is that you pay yourself a reasonable salary. Obviously the reason for this is to discourage S Corp shareholders from simply declaring all profits as dividends, thereby avoiding FICA taxes on the entire profits that were earned. But you have indicated that you did start paying yourself a salary in April, so this should not be an issue for you.
Thank you rick
There is no way for any of us to know what parameters the IRS uses when judging what they deem to be a reasonable salary. However, I think that a large part of their decision is based on the percentage of what that salary is of the total profits.
From the figures your provided, I am assuming your total profit for the year was $28,000 of which you paid yourself a salary of $22,000, or 78.5%. In my opinion anything over 60% of your profits paid as salary is going to be safe. You cannot pay yourself more than what you have in profits, and as long as your percentage of salary is 60% or more, this is not likely to be questioned.