Reasonable Salary
“I took all my S-Corp profit as owner distributions last year and paid no wages, how do I fix this mistake before tax time?”
An S-corp that took all profits as owner distributions and paid no wages often raises reasonable salary concerns, and the practical response usually depends on the entity’s payroll history, the owner’s role and services, and how the return and payroll filings were prepared. In many cases, the fix involves looking at whether prior payroll reporting can still be adjusted, whether compensation can be documented before the return is filed, and how distributions were recorded in the books. The timing of the correction, the amount of work performed, and the supporting records often shape how the issue is handled. Walking the details through with a CPA is the fastest way to know what truly applies here.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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