S corporations can deduct ordinary and necessary business expenses when calculating taxable income. Purchases that allow employees to work effectively are categorized as deductible expenses as a matter of course. The process for deducting uniforms for an officer is a matter of basic recordkeeping -- it allows the company to include the amount in the deductible expenses portion of its federal income tax return.
Record the purchase of the uniforms in the S corporation's books. Purchase the uniforms out of business income and through a bank or credit account so an official record of the transaction is available. Have the company's bookkeeper -- or person responsible for tracking business expenditures -- debit a cash account and credit an expense account that can be either a dedicated employee uniform account or an aggregated account for employee supplies in the amount of the transaction.
Create a form to document an employee request for reimbursements if the officer buys the uniforms out of his own money and the S corporation intends to pay him back. Collect the receipt from the officer in exchange for the reimbursement. Record the transaction on the corporation's books in the same way as a direct purchase by the company.
File the proof of payment for the purchase of the uniforms within the S corporation's filing system. The Internal Revenue Service requires businesses to substantiate expenses that form the basis of deductions. Usually, it is enough to keep a copy of an invoice, receipt or canceled check. File the proof by category or with other employee expenses to make it easier to recover the proof if needed. Attach a notation to the paperwork to make clear any specifics of the purchase that may affect the way the transaction is treated for tax purposes.
Prepare the S corporation's financial records for the fiscal year for tax purposes. Aggregate business expenses by category, including the expense for the uniforms. The IRS allows a business to deduct expenses from income that are ordinary and necessary to operate. An expense for the purchase of uniforms would easily pass that test.
Complete IRS Form 1120S, the federal income tax return for S corporations. The form requests you to carry over certain categories of income and deductible expenses from the company's books to reach a bottom line amount of net income that would be subject to tax. The amount spent on the uniforms for the officer is included with the amounts listed under deductible business expenses on this tax form.