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@HOPE2 wrote:

Hi. My new client has taken distribution but did not pay himself reasonable comp

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I know many people argue with me when I say this, but ...

Did your client say that money was a "distribution" (an owner's benefit, taking profit from the company), rather than "compensation" (being paid for the work performed for the company)?

Not filing payroll forms does NOT necessarily mean they did not take compensation (payment for the work performed).  It very well just mean that the payroll forms are late.