First, an S Corp has Employee(s). There is no such thing as making money, taking it or not, but you doing the work = you were the employee. Whoever did your taxes for your S Corp got it wrong all these years.

Next, distributions are after reasonable Wages for work performed. Removing equity as a distribution is taking retained earnings and is not payroll. But it is never done in lieu of payroll, either.

Lastly, you are in the wrong place on the internet. You do not seem to be a Tax Preparer professional using one of Intuit's Professional tax preparation programs. You seem to either mean to be in the TurboTax forum, which is not the right place for S Corp issues; or, you want free tax and accounting guidance, which isn't this place on the internet, either.

It is past time that you seek help from a reliable CPA; you have a lot that has gone wrong.