Shareholder Distributions vs. Payroll: Understanding the Difference Before the IRS Does
Published on: 13/08/2026
Wages and distributions follow different tax rules. Learn why the IRS looks at substance over labels and how uncategorized withdrawals create payroll and basis risk.
shareholder distributions vs payrollS-corporation wages distributionsIRS substance over formS-corp basis trackingshareholder loan recharacterizationpayroll tax withholding S-corporationdistribution in excess of basisS-corporation withdrawal categorizationSteve Perry EAIRS resolution Atlanta

