Despite my threats of consequences and disengagement, the client has been ineffective at communicating his net profit to me in a timely manner and we have not run any payroll this year.
I suspect he has profits and distributions.
I just don't want to fire this client.
My problem is, I have always quickly fired or refused these clients in the past, and I have no experience with resolution in these cases.
I am certainly not willing to prepare his 1120s with $150,000 of net profit (and distributions) and no payroll (this subject has already been beaten to death by our group - I'm not doing it).
If I finally get a 2022 P&L from him in June of 2023, for example, can I just run an appropriately-sized late December 2022 payroll and let the late penalty letters come in for him to pay for his non-compliance? Is this a reasonable solution?