Tax Law (Questions About Taxes)/S-Corp Salary


I have an S Corp client who did not take a salary last year.  What is the best advise to give them on filing their 2012 tax return for both the S Corp and Individual. Should we go back and refile the quarterlies with salaries and pay the taxes or is there a more ethical way to remedy the situation. They are now taking a salary again for 2013 and want to pay the "wage taxes that they would have paid if they would have handled it properly.  Any advise is appreciated.


Thanks for your question.

You could refile for 2012.  You could treat it as all being paid on 12/31 so you would only need to file one 941.  That is the most ethical approach. If the company did not have a large amount of earnings in 2012, you could let it slide under the assumption that they were building the company and did not have sufficient income to warrant a salary.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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