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Tax Law (Questions About Taxes)/1120-S Estimated Taxes or 941


This year 2012 I will be filing 1120-S federal return for the first time. I have a small business, no employees, gross about $45,000. I have been paying estimated taxes all year. Just last week I was told that instead I should have been filing form 941 employer's quarterly federal tax return, and, as a result even though I have been sending money in for estimated taxes I could be subject to fines. I looked at the 941 and it looks like that only applies if I had employees. Any help would be appreciated.

If you have a profitable S Corp the active shareholder is required by IRS code to take part of their compensation via a "reasonable" salary.  That involves placing you on payroll (like any other employee would) filing quarterly payroll tax returns and W2.  Payroll can get messy so I really recommend engaging a payroll service and/or discussing your specifics in more detail with a tax professional.

Tax Law (Questions About Taxes)

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Adam Shay, CPA


I have an expertise in individual income tax and income tax planning. I also have experience working with small businesses (variety of entities) on both income tax and accounting needs.


I have spent 5 years managing 15 franchised tax locations. For the past 6 months I have owned my own tax preparation and accounting firm the specializes in assisting small business and more complex individuals. Accountant Wilmington NC


MBA from the University of Maryland BS from the University of Virginia

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