Reasonable Salary

I distribute cash from my S-Corp specifically to pay my personal income taxes, does the IRS consider those tax payments as W-2 wages?

When an S-Corp distributes cash to cover an owner’s personal income taxes, the treatment often depends on how the payment is documented and whether it is tied to compensation, shareholder distributions, or a reimbursement arrangement. The IRS typically looks at the actual nature of the payment, the

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