Yes, you are correct!
The tax relief for Texas postpones various tax filing and payment deadlines that occurred starting on February 11.
As a result, affected individuals and businesses will have until June 15, 2021, to file returns and pay any taxes that were originally due during this period.
This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15.
Among other things, this also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.
The June 15 deadline also applies to quarterly estimated income tax payments due on April 15 and the quarterly payroll and excise tax returns normally due on April 30.
It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17.
When you file a business return, you are signing it as to being accurate and complete. As you could see above, IRS may use the information that is reported on line 7 and line 8 for various reasons.
As the return was originally filed, it was not accurate and correct.
It should be amended so that you have the correct amount of officer compensation reported on line 7 and the correct salaries and wages reported on line 8. Reasonable Officer Compensation can come up when IRS is looking at an S corporation. Be sure W2s are issued for the employees and officers.
Line 7. Compensation of Officers and Line 8. Salaries and Wages Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.
Enter on line 7 the total compensation of all officers paid or incurred in the trade or business activities of the corporation.
The corporation determines who is an officer under the laws of the state where it is incorporated.
Enter on line 8 the total salaries and wages paid or incurred to employees (other than officers) during the tax year.
If the corporation claims a credit for any wages paid or incurred, it may need to reduce the amounts on lines 7 and 8.
See Reducing certain expenses for which credits are allowable, earlier. Also reduce the amounts reported on lines 7 and 8 by the nonrefundable and refundable portions of the new CARES Act employee retention credit claimed on the corporation's employment tax return(s).
For additional information, please refer to the following link:
IRS Instructions for form 1120S
