An IRA issue is not the reason to elect S Corp treatment. It should be one of the last considerations.

If this person exceeded their allowable contribution limit by putting in $20,000 then perhaps you should elect S Corp for 2023, ignore the prior IRA activity, amend the reporting info for the operations to take into account the missing info, and establish a SIMPLE IRA plan going forward.

Later, they can roll their SIMPLE IRA and their SEP IRA into their Trad IRA account, if they have all of these going, as they approach retirement planning, if that helps.

And both SIMPLE and SEP plans now accept Roth. Thank you, SECURE Act 2.