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Tax Planning/Tax Preparation Fees


In a S-corp, one can deduct tax preparation fees for the CORP by booking the fee as a business expense.  If the S-corp only has one owner, can it reimburse the owner for his PERSONAL tax preparation fee and also book it as a business expense deduction?  If not, should the check to the owner to pay for the individual tax prep fees be recorded as a distribution instead of an expense reimbursement?

Sasha - I am pleased to respond to your question.

Personal tax preparation expense is generally not deductible as a corporate business expenses and is therefore properly recorded as a distribution to the owner if the S-corporation did, in fact, pay for the preparation fee.

I trust that this sufficiently answers your question.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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