Money paid to an S-Corp owner is NOT reported on the 1120-S except to balance the books if you are required to fill in those schedules ... it is NOT a deduction or an expense to the corporation. It decreases the basis the owner has in the business. Read the form instructions here and/or seek local professional assistance if you are unsure on how to keep books or complete a tax return. https://www.irs.gov/forms-pubs/about-form-1120-s
FYI ... if this is for a 2020 calendar year company this return was due last March (Sept if you put it on extension timely) so the penalties are piling up ... the cost of local professional guidance to get them waived will be worth the fee.
AND if the company is profitable a reasonable salary is required and payroll needs to be completed. This is the #1 audit area for an S-Corp which the IRS is cracking down on.
Money paid to an S-Corp owner is NOT reported on the 1120-S except to balance the books if you are required to fill in those schedules ... it is NOT a deduction or an expense to the corporation. It decreases the basis the owner has in the business. Read the form instructions here and/or seek local professional assistance if you are unsure on how to keep books or complete a tax return. https://www.irs.gov/forms-pubs/about-form-1120-s
FYI ... if this is for a 2020 calendar year company this return was due last March (Sept if you put it on extension timely) so the penalties are piling up ... the cost of local professional guidance to get them waived will be worth the fee.
AND if the company is profitable a reasonable salary is required and payroll needs to be completed. This is the #1 audit area for an S-Corp which the IRS is cracking down on.