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How are corporation director fees and/or dividends entered on Form 1120? Which is the most accepted way to classify cash payments to board of directors?

Level 3
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3 Replies 3
Level 15

Fees vs dividends.... those are two different things.

And 'splain what you mean by "cash" payments?  As in folding money?

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Level 10

Directors' fees are an expense to the corp and income to the directors.

Dividends are a reduction in Retained Earnings and income to the shareholders of the C corp.

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Level 8

And please remember that if any of the directors are officers of the corporation , it is wise to look at whether their director's fees should be reported on a W-2 as opposed to a 1099.;