Level 1

1120-S accrued and unpaid accountable expenses in 2025

Forum|Forum|4 months ago
February 24, 2026
3 replies
11 views

I have a first year S Corp client filing their 2025 1120-S with unpaid accountable plan expenses for the 2 owners. Is there any way to deduct these expenses in 2025? I've heard I could possible do so if paid within 60 days of year end. The company is tight on cash, so that is why they were not paid out in 2025. Any insight is greatly appreciated, thank you!

K

Karl

Intuit Community Champion

To the best of my knowledge, no. Accountable plan activity follows payroll, which is cash-basis. I'm open to being proved wrong on this, though!

Also, I would make sure those payments do ultimately get paid timely. Failure to pay timely disqualifies it from being "accountable," and thus is "unaccountable" which is taxable wages to the EE. Another disqualifications is paying advances but not having receipts and/or overpayments turned back in.

*If this (or another answer/reply) solves your problem, please click "Accept as Solution" to get this post out of the "Unanswered" queue of posts.*

T

Terry53029

Intuit Community Champion

The owners general have up to 60 days to summit expenses, but the scorp can only deduct the expense in the year paid. (assuming cash based scorp)

IRonMaN

Level 15

If they are tight on cash, did the shareholders maybe make an equity contribution into the corporation equal to the amount of those reimbursable expenses?

Slava Ukraini!

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded