"There's still time to make things right,"

I sure hope they made lots of money and still have some of it. (penalties, taxes, etc).

Make Right = turn all "draws" into Loans, then offset the loan amount for each year end with one Gross wage payroll for each year end. For both years. Then, 2018 1120 gets amended and personal 2018s get amended. State and Fed employer considerations.

Then, they need guidance for undoing that corporation, and since it was only two years (and only one is filed), it might only hurt a little. We don't know how assets will be affected, for example.

And you would have one QB entity file for that Corporation, without any of their personal activity it in. If they worked together in 2017, none of that activity would carry over to the 0218 file. And if they wrap up that corporation, then you need to start a new file for that new entity that they will be without the corporation existing.

Whew. That should keep you busy.

Good luck.