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@HOPE2 wrote:

has taken $95000 as distribution

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Has he specifically told you that those were distributions (an owner's "cut" of the profits)?  That none of that was to pay him for the 'work' he performed for the business?

Just because payroll forms were not filed, does NOT mean it is not payroll/compensation.  You can't arbitrarily call it "distributions" unless that is what the client told you it was for.  You need to ASK the client.  If any of it was to pay/compensate him for the work he performed, you should be filing late payroll forms.