I am a staff accountant at an S Corp; we recently noticed that we incorrectly recorded our 2019 tax payment to tax expense instead of as a distribution; we have recorded all our tax payments in 2020 to distributions. What would be the tax ramifications, if any?
USA S Corp Question Tax Question
- Thread starter capnbenny
- Start date
I assume you are talking about a tax payment that was for a shareholder's personal tax obligation rather than the S Corp's such as
payroll tax.
What I suggest you do is - go back to the original posting and change the general ledger posting from the tax expense to the distribution account.
payroll tax.
What I suggest you do is - go back to the original posting and change the general ledger posting from the tax expense to the distribution account.