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My bookkeeper told me she has to take out $1,300 each month from my S-Corporation account and pay the IRS. Can someone explain to me why I would have to pay the IRS $1,300 each month for my S-Corporation?


The BIDaWIZ Team's Answer:

An S-corporation is referred to as a pass through tax entity. This means

that the net income, of the S-Corp., is taxed, on your Form 1040, in the

year that the profit is earned, even if the equity is retained by the corporation.

So, it "sounds like" she is remitting the estimated tax to "cover" the estimated

tax liability that will accrue, at year end, from the Corporation's net income, for the

given tax year.

The BIDaWIZ Team



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