IRonMaN
Level 15
03-05-2020
09:37 AM
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S corps don't have owner's draw, but they could have distributions. If he only took 6K in wages, that really doesn't sound like a reasonable wage. You need to pay a reasonable wage before you can take out distributions. You really need to determine if you should go back and amend payroll tax returns to show the "draw" as wages, because that's what they were.
Slava Ukraini!