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An S Corporation Cannot Deduct Accrued Expenses for ...

    https://www.irs.gov/retirement-plans/an-s-corporation-cannot-deduct-accrued-expenses-for-related-parties
    Feb 24, 2021 · An S Corporation Cannot Deduct Accrued Expenses for Related Parties If an Employee Stock Ownership Plan (ESOP) owns an S corporation’s stock, that S corporation may not deduct any accrued expenses for any ESOP participant, including retirement plan contributions based on accrued compensation.

Wage Compensation for S Corporation Officers - IRS tax forms

    https://www.irs.gov/pub/irs-news/fs-08-25.pdf
    The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state "Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation."

Are Year-End Compensation Accruals Tax Deductible?

    https://www.rklcpa.com/are-your-companys-year-end-compensation-accruals-tax-deductible/
    Dec 13, 2016 · First and foremost, in order for a compensation accrual to be deductible in the calendar year that the accrual originates, the compensation accrual must be established properly according to criteria set forth by the IRS. The criteria must be met for all compensation accruals including holiday pay, vacation pay and year-end bonuses.Estimated Reading Time: 3 mins

Deducting deferred bonuses - The Tax Adviser

    https://www.thetaxadviser.com/issues/2018/may/deducting-deferred-bonuses.html
    May 01, 2018 · Any payments made after this 2½- month period are deductible by an accrual - basis corporation in the tax year in which the payments are included in income by the recipient.Estimated Reading Time: 13 mins

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