Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

If a shareholder of an S-Corp, 100% shareholder, who did not…

If a shareholder of...

If a shareholder of an S-Corp, 100% shareholder, who did not pay himself a salary in 2016 and owes in excess of 48K when the K-1 comes over to personal tax and all the shareholder's monies are in the S Corporation. What is the best way for the shareholder to pay his or her tax debt?

Accountant's Assistant: The Expert will know how to help. Is there anything else important you think the Expert should know?

I don't think so

Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
10/15/2017
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,782
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

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

S corporation shareholders not paying themselves a salary is a common mistake.

If you cannot pay the entire amount you owe, you can request an Installment Agreement and make monthly payments to the IRS. The IRS is very accommodating with Installment Agreements.

When you file your return, pay as much of the tax liability as you can.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question
Customer reply replied 4 months ago
I know all this information. My question is that their monies are tied up in the S Corporation. The S Corp has the funds to pay the personal taxes that the SCorp's K-1 has generated. How can they access money from the S-Corp to pay their personal as a 100% shareholder?

I have no way of knowing what you do and do not know based on the information in your question.

I will opt out so another expert can assist you.

Thank you.

Ask Your Own Tax Question
Customer reply replied 4 months ago
I did not mean to be offensive, just that was not what I was asking.
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,823
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

I'm PDtax, a different expert. I see the first expert has opted out. I can assist.

Ask Your Own Tax Question

Since your shareholder can access S corp funds, they should do so to cover the check. Do not simply pay the IRS with a company check or direct debit.

Your 100% shareholder has the authority to draw funds as they see fit from their S corporation any time. They are paying the income tax on it now, why not use some of that taxed income to pay the taxes?

If this covers things, please rate my answer with positive feedback. Experts are not paid until positive feedback is recorded.

If you need additional help, I am online now.

PDtax

Ask Your Own Tax Question
Customer reply replied 4 months ago
do you think since he failed to take salary and pay payroll taxes as he should it will be safe to take owner draw to pay taxes?

Of course.

I will tell you that I would fix the problem and report a wage, and pay the payroll taxes, on some of the income. Likely saves thousands. Should be worth doing, even now.

PDtax

Ask Your Own Tax Question
Customer reply replied 4 months ago
I am sorry, had a client to come in my office to pick up taxes. So if the 100% shareholder just writes a check to himself as a draw from SCorp for the total he owes in taxes it will just be a normal draw as he would take for anything else?

YES. no tax impact to either the corp or to him.

Please rate only after I have answered all your questions.

PDtax

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,823
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
PDtax and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,823
4,823 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I am a shareholder for an S-Corporation. I use a personal
I am a shareholder for an S-Corporation. I use a personal vehicle for business expenses. Am I to use Schedule C or Schedule A on my personal taxes to deduct the business miles? … read more
Carter McBride
Carter McBride
LLM
459 satisfied customers
Are funeral expenses deductible on IRS personal return? My
Are funeral expenses deductible on IRS personal return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question regarding IRS installment agreements. I am
I have a question regarding IRS installment agreements. I am a self-employed sole prop that is running a company that has grown quickly the past few years. I am paying on an IA from 2014-15 (balance a… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,336 satisfied customers
I WANT TO CHANGE PRIOR YEARS BUSINESS FILING TO PERSONAL TAX
I WANT TO CHANGE PRIOR YEARS BUSINESS FILING TO PERSONAL TAX FILING … read more
Barbara
Barbara
Enrolled Agent
4,782 satisfied customers
I have an S corporation with two shareholders, same persons
I have an S corporation with two shareholders, same persons are the only employees if the S corporation. The corporation leases vehicles for the shareholders employees. The leased vehicles are both us… read more
Carter McBride
Carter McBride
LLM
459 satisfied customers
I have an existing installment agreement. I need to change
I have an existing installment agreement. I need to change the checking account from which it is drawn. I was told by the IRS that I would need to complete a 433 and submit it. I cannot find an email … read more
PDtax
PDtax
Certified Public Accountant (CPA)
4,823 satisfied customers
How do i file payroll tax returns and make payments for
how do i file payroll tax returns and make payments for California? Do I need my state ID number AND unemployment number or are they one and the same?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,336 satisfied customers
I am filing tax return for a deceased person. There is a
I am filing tax return for a deceased person. There is a personal representative and two people that are on the will and states any and all property be divided evenly between the two. Who gets income … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can you help me determine what payroll taxes and rates I'm
Can you help me determine what payroll taxes and rates I'm going to be responsible for in Texas?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
WE OWE 53k IN 2017 PAYROLL TAXES. WE NEED ADVICE ON HOW TO
WE OWE 53k IN 2017 PAYROLL TAXES. WE NEED ADVICE ON HOW TO HANDLE THE FILING OF OUR 2017 Tax return... Paychex accidentally paid our connecticut payroll taxes. we owe thm that amount.. However 53 is d… read more
abci168
abci168
Principal
27 satisfied customers
If I owe taxes and i have an installment agreement and I get
if I owe taxes and i have an installment agreement and I get married can that affect my new husband … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,362 satisfied customers
I owe approx $125,000 in back payroll taxes, penalties and
I owe approx $125,000 in back payroll taxes, penalties and interest. I am the sole employee of my corporation. I am hoping to set up a payment plan with the IRS to pay everything that I owe. Over what… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have an installment agreement with IRS for monthly
I have an installment agreement with IRS for monthly payments. I paid 8 days late on this months payment. Can they cansel the agreement??… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,362 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
I have an established installment agreement but have lost my
i have an established installment agreement but have lost my job...how do i cancel the agreement or get it on "hold" until im working again? thank you, albert … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,283 satisfied customers
I have a installment agreement to pay FICA taxes that I
I have a installment agreement to pay FICA taxes that I could not pay in past years from employee with holdings. Can I deduct the tax portion paid on the installment agreement, since it wasn't deducte… read more
abci168
abci168
Principal
27 satisfied customers
I am finalizing a personal tax return and my client has 8 or
I am finalizing a personal tax return and my client has 8 or 9 K-1 forms from operating companies that he owns. One company that i do not prepare issued a K-1 with a line 1 income of $242,089 and a se… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,336 satisfied customers
Tax question: I have an installment agreement with the IRS
Tax question: I have an installment agreement with the IRS for past tax years (2014-15) and have been paying $500 a month on about $27,000, For this past tax year (2016) I paid my tax bill in full wit… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x