Hello,

I have a client who took distributions that really should have been payroll.  She hasn't done payroll before.  Since they were distributions, no tax was withheld, and she didn't file any reports.  This is a very small business.  I have heard about CPAs reclassifying and doing a late W2.  I know this isn't perfect, but can it be done?  I am thinking if she moved over $15,000 as distributions, I could just do a late W2 of $13,000 or so dollars.  the problem is that she also didn't make any unemployment contributions in addition to not withholding or doing any 941.