To this same subject: I have a prospective client who is a sole proprietor. He got himself and EIN and had ADP pay him salary, but he did not establish any legal entity much less to file it as an S-Corp or C-Corp. Of course, paying himself salary is improper. This has been going on several years.

My question is this: Could I file a 1040 for him by just reporting his true income (all that he has received) on Schedule C, ignore the "salary", show the FIT withholdings as payments to the IRS, and show SocSec and Medicare withholdings as applied to reduce payment of SETax? And how would I show these reductions to payment of SETax so that the Social Security and Medicare funds would receive their reductions?