What is best way to resolve failure to file tax returns for multiple years? Earned income through an S-corp but did not receive a salary and did not file a w-2. Can I file prior year tax returns now and just treat all income as distributions from S corp, or should I file W-2s late, or should I handle the income in Schedule C and ignore the S Corp (is that possible)?
First the 1120-S should be filed for every year the corporation is in operation. Failure to take wages and file proper payroll tax forms needs to be corrected properly... however you could "pay" yourself as a sub contractor and enter that income on the Sch C which would effectively accomplish the same thing and can be defended in an audit. But going forward you should not rely on this method and you need to properly file the payroll tax reports, issue a W-2/3 and file the 1120-S timely.
As others have posted to your other thread seek local professional assistance to clean up this mess correctly. The longer you wait the worse and more expensive it will get.
Still have questions?Make a post