Form 8594 includes a noncompete. However, the payment went directly to the Sellers (shareholders/owners) and not into the Inc's bank account. Does the Noncompete payment appear on the 1120S ( either the 4797 as proceeds and cost) or not at all. I am concerned that the proceeds stated on the 8594 will not match the 1120S if I leave off the non-compete. Or, do I make a note on the F8594 to state the noncompete payment was paid directly to the shareholders/owners ?
