Can an S-Corp with a profitable end of year net income rollover the income to the following year and keep it in the company without distributing the income to the shareholders and so they will not report in the K schedule or individual 1040 from.

“Can an S-Corp with a profitable end of year net income rollover the income to the following year and keep it in the company without distributing the income to the shareholders and so they will not report in the K schedule or individual 1040 from?”-----> S-Corps do not pay corporate income taxes and instead pass all profits and losses through to the shareholders thru Sch K/K-1/ Sch E or etc and 1040. While an S corp is not taxed on its profits, the owners of an S corp are taxed on their proportional shares of the S corp's profits. The process of preparing a tax return for an S-Corp is closely linked with preparing the income tax return of the corporation's shareholders. The S corp profit increases AAA balance and shreholder’s basis.So, distributions to S corp shareholders from AAA is NOT taxable as AAA is cumulative total undistributed net income(net profit) items generated by the S corp. You need to use the data from sch K and K-1 of the 1120s to generate K-1s for each shareholder. Sch K is a summary schedule of all shareholders' shares of the corporation's income, deductions, credits, etc. All corporations must complete Schedule K. K-1s are equivalent to 1099s or W-2s, they tell the IRS who received income during the previous year, the difference between a 1099 or W-2 and a K-1 is that the income is not earned income but instead is business profit.So, you need to report your S corp profit on 1120S/Sch K/K-1 and Sch E.