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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2656
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I need to file taxes for my S-crop for the first time, and I

Customer Question

I need to file taxes for my S-crop for the first time, and I need some help!
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I didn't file payroll taxes for 2015, but I will reporting a salary for myself. Is there a way to avoid or minimize payroll tax penalties?
JA: Is there anything else important you think the Accountant should know?
Customer: Not off the top of my head
Submitted: 13 days ago.
Category: Tax
Customer: replied 13 days ago.
I'm just now filing my personal taxes, which will show, for the first time, a salary paid by my s-corp. Am I better off reporting a lower salary, and a higher dividend distribution? Also, how should i split those two things (salary vs distribution)? I work in a field (music) that would be nearly impossible to establish a reasonable salary, because there's no constistency.
Expert:  Barbara replied 13 days ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Is your S corp issuing a W-2 to you for 2015?

The IRS has increased its scrutiny of salary versus distributions with S corp employees.

Once you prepare your 1120S for the S corporation, it will generate a K-1. The information from the K-1 is entered on your personal 1040.

S corporations are pass through entities--any income/loss is passed through to the shareholder (you).

The following link contains excellent information regarding salary v. distribution:

Please let me know if I can assist you further.

Thank you and best regards,


Expert:  Barbara replied 12 days ago.

Just following up with you to see if you have any other questions. If so, please let me know, and I will be happy to assist you further.

Best regards,