Welcome Guest. Register Now!  

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-06-2018, 01:40 PM
Junior Member
Join Date: Feb 2018
Posts: 1
S-Corp Distributions

S-Corp distributes large share of profits each year. CFO allowed some shares to be bought after quarter, but allowed distributions for immediate preceding quarter. When shares were sold in early part of year, CFO distributed only based on income up to that quarter. Additional distributions were made in greater percentage of income in later quarters. Those who sold shares, did not received anything so weighted distributions were not done. Tax returns paid for partners for state returns were deducted from return and given to shareholders as tax credits for their personal taxes. Tax paid for them were not classified as distributions. So larger shareholders given credits, smaller ones nothing. CFO knows this is bad, refuses to correct, as refuses to amend returns for IRS penalties deducted in error on previous returns. Company's shareholder agreements, etc. are based on C-Corp, there is no provision for rights for equal distributions. The figures we are talking about are substantial in dollar terms. Has the Company terminated S-Corp election? I would mention that this is many years old in the way things have been done. Board members got back dated stock purchase dates to get distributions.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Distributions from Partnership to S-Corp Partners wgreddencpa Limited Liability Company 3 06-12-2017 04:37 PM
Distributions WA&FS16 Income 2 06-01-2016 01:59 AM
S corp income / distributions: k-1, 1120S hoopstersdunk S-Corporation 0 01-07-2014 09:28 AM
Non dividend distributions from S Corp Controlled groups Beth K. S-Corporation 1 09-13-2013 02:20 AM
New S-Corp. Questions about distributions and Foreign Earned Income Sean_82 S-Corporation 0 07-04-2010 07:15 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning

» Recent Tax Q&A
No Threads to Display.