Small corporation IRS requirement to pay to officers

[THBella]

We have a small company, 2 people so far.  Apparently the IRS requires the company to compensate officers and/or shareholders.  

What if we didn't?  2020 has already passed.  Is it too late to take a wage or other form of payment?  Or can we just file indicating that we didn't pay the officers/owner?  

[pk]

@THBella  there is  no requirement to pay wages / compensation --  what is required is that any payments made  ( wages / officers' honorarium etc. ) meet   usual  for the industry .  What they are trying to do is make sure that  you are not paying low  in wages  but  paying in other ways  that is not subject FICA or some other  taxes.   So if the entity did not pay any wages/compensation , because cannot afford  or other reason but not as a means of avoiding/evading  taxation-- then there is nothing to worry about and is quite legitimate.  Just report that you did not pay any wages  to the two owners ( therefore  entity had  more taxable income) ---   make sure  that any and all compensation -- in cash or in kind direct / indirect -- is recognized..

is there more  I can do you ?

[THBella]

Very helpful.  Thank you PK.