My shareholders have very different tax brackets due to spousal income. Can I calculate the impact of pass thru income on each member's individual tax return, then charge the S corp for the taxes (a non deductible Sched M on the 1120S) and then reimburse the shareholders for their respective burdens. My theory is that the tax cost is the combination of what all the shareholders pay. I can't reimburse the shareholders thru distributions because they wouldn't be pro rata. Anyone know reasons why I can't do this? Why I shouldn't? Thanks!