This is my first year with an S corp Election and I have hit a few road blocks!
1. On my 1120 S I have put the, 01/16/2023 in Section A, "S election effective date" as that is the date on my letter from the IRS stating when I will be treated as an S corp. Do I need to put the date as 01/01/2023 or keep it as the date from my letter? Turbo tax is telling me to check this entry.
2. Do I need to issue a form 1099 DIV? Turbo Tax says I might need to...it sure would help if they told me yes or no! I paid myself a salary w2 and paid all necessary taxes throughout the year. All remaining income is being reported on my K1 as ordinary business income. I have read that this would be considered a non-dividend distribution and therefore doesn't need a 1099 DIV but I want to make sure I am correct in this thought.
There is a question further in that asks for total Dividend Distributions made to Shareholders from accumulated earnings and profits account, and I am currently putting a 0.
3. On form 7203 Section C asks for a Stock Block. This section requires an answer. Do I need to put anything in this section if I am the only shareholder and own 100% of the company?
-If so, should I put 1 block and then use that every year?
-Do I need to check the Original shareholder box as well?
4. The company does not own anything and at the end of the year I am claiming all of the income on my personal taxes and moving the money out of the company account. Wouldn't that mean my end-of-the-year assets are considered to be 0?
