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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4479
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
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Customer: no
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Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

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

Customer: replied 1 year ago.
ok thanks
Expert:  PDtax replied 1 year 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 1 year ago.
Is the 941/944 and 940 for the business or for us personally
Expert:  PDtax replied 1 year ago.

For the business.

Customer: replied 1 year ago.
what do we do about personal taxes
Expert:  PDtax replied 1 year 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 1 year ago.
we receive a K-1 for the loss and do not receive a w2 because we are the sole officer
Expert:  PDtax replied 1 year ago.

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

Customer: replied 1 year ago.
not sure this our first year? I usually use turbo tax but having issues of where to report it
Expert:  PDtax replied 1 year 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 1 year ago.
I am following up on my offer to assist. Please advise.
Customer: replied 1 year ago.
No thanks spoke to my accountant
Expert:  PDtax replied 1 year ago.
I'll let site management know.