Are they going to repay this?

Are there other shareholders to consider?

It's not nondeductible expense, because it has nothing to do with business. It has to do with a person thinking this corporation is their personal piggy bank and not a separate entity. This contributes to "piercing the corporate veil" and law firms love to see this, since it opens up the issue of risk for them to file suit against the person and the corporation, if need be. The reason to use a corporate structure includes asset and liability protection, and this taxpayer just blew up that protection. The IRS loves to see this, too, since they can come in and declare that $80k more as payroll and payroll tax avoidance can result in late taxes, interest and penalties being owed.