S-Corp officer not paying salary
I have a new client, S-Corp, one officer. He has been in business for 6 years with a CPA doing his taxes for all that time. He has not paid any salary to himself for the 6 years, just all distributions. CPA has never insisted he pay a salary to himself.
I have explained that he needs to pay himself a reasonable salary every year, and he is doing that this year 2012.
I know all the rules about S-corp, but I'm not sure what to do now. Should he do amended returns and amended employment taxes for all the years? I know the IRS will catch up to him eventually.
Any advice I can give him is appreciated.