I am doing 1120s for year 2005 for a client.

This is my new client. I do have 2004 tax return prepared by someone.

On 2004 return, Accrued retirement (401K) amount, in other liability, is $26,000. Where as on line 17, on first page of 1120S, it is $13,000. I am concluding that $13,000 is matching for 2004. Where as 401k witholding amount ($13,000 per client) is in wages.

What does it mean? This is my first return with 401K involved.
2004 return was filed in 09/05.

Please help.


Client will do matching for 2005 before 09/15/2006 and has 401k withholding of $12,000 for 2005.