dmertz
Level 15

Get your taxes done using TurboTax

The IRS gets a copy of your W-2 and would know to add the box-1 amount to the box-12 code-D amount to determine the salary that you were paid (if they should ever question your salary's reasonableness).  With regard to determining the reasonableness of your salary, it's more likely that they would look at your Form 1120-S which would have all of the relevant information.