DianeC958
Expert Alumni

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When you file as an S-Corp the officers ( Managing Members) are required to take a reasonable salary and that amount needs to be reported on Line 7 of your S-Corp return.

 

If you do not show compensation to S-Corp officers on Line 7 of your 1120S return it can trigger an audit.  

 

The IRS is constantly increasing reporting requirements to have people be compliant.

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