Here it is (pay attention to his comments regarding 'leaving the money in the S-Corp).  I'd expect him to chime in at some stage with his learned thoughts on this 😉

@BobKamman 

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/re-no-earned-income-ref...

BUT with your new info.... that's not applicable.

As Bill says, fire the client.   I've worked with clients that screwed this up - once.  If they don't fix it going forward I disengage.  Ignoring my tax advice isn't tolerated.  

There are tax pro's who think you have no liability for just doing the F 1040; reporting what happened (i.e no payroll).  Other tax pro's disagree.   Professionally for me, no client is worth taking the risk.  YMMV