Are shareholders taxed on s corporation profits, whether the profits are distributed or not?

Question

As a shareholder could I be responsible for paying taxes on profits that I never actually received? For example, I get a schedule k-1 "shareholders share of income" with 50 thousand dollars profit, but never received the 50 thousand dollars?

Answer 1

Yes, that would be correct. it would the decent thing of the company to pay the dividend to the extent so that you could pay your taxes but they don't have to.