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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4104
Experience:  35 years tax experience, including four years at a Big 4 firm.
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My husband is 100% shareholder and sole owner of an S-corp.

Customer Question

hi my husband is 100% shareholder and sole owner of an S-corp. His compensation listed on the company 1120S is 27000. The net income was a loss of $-2127. My problem is no previous taxes were paid on the 27000. What do i do
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: no
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Submitted: 8 months ago.
Category: Tax
Expert:  PDtax replied 8 months ago.

Hi from just answer. I'm PDtax. I'll assist.

Customer: replied 8 months ago.
ok thanks
Expert:  PDtax replied 8 months ago.

There are a couple ways to fix this. You could file the 941/944 and 940 and pay. State taxes too.

I might suggest something to save some $$. Perhaps the wage should be decreased, which saves on the payroll taxes, interest and penalties. Depending on your history, you might be able to support a wage of $12,000, let's say. The payroll tax cost would be cut in half. And you could support the change due to the business losing money, and bring less able to pay his wage.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 8 months ago.
Is the 941/944 and 940 for the business or for us personally
Expert:  PDtax replied 8 months ago.

For the business.

Customer: replied 8 months ago.
what do we do about personal taxes
Expert:  PDtax replied 8 months ago.

It depends on what you decide to do.

If the corp will full pay the payroll taxes, your personal returns can be filled with the w-2 and s loss you report.

If you decide to amend, hold of on filing personally until the amendments are filed.

Please rate my assistance when your questions are answered. I'm PDtax.

Customer: replied 8 months ago.
we receive a K-1 for the loss and do not receive a w2 because we are the sole officer
Expert:  PDtax replied 8 months ago.

Then how do you report his compensation of 27,000?

Customer: replied 8 months ago.
not sure this our first year? I usually use turbo tax but having issues of where to report it
Expert:  PDtax replied 8 months ago.

I think we got off the track of your original question. This started as a w-2 and s corp question.

I'll be glad to help, but I think I need to offer consulting time via our premium service.

Accept, and I can help with both issues.

Expert:  PDtax replied 8 months ago.
I am following up on my offer to assist. Please advise.
Customer: replied 8 months ago.
No thanks spoke to my accountant
Expert:  PDtax replied 8 months ago.
I'll let site management know.

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