I had a question I wanted some opinions on. Two owners of an S-corp have loaned the S-corp funds for various reasons over the past few years. The loans are documented stating they are loans but there is not interested that was charged. Most loans were over k.\n\nWhat are the possible negative effects of this in case of an audit? I understand the IRS could consider these to be capital rather than loans.\n\nThe S corp has never had a profit.\n\nThanks for your thoughts!