This is not a do-it-yourself project. you face substantial penalties for failure to file and failure to pay personal taxes and failure to file S-Corp return. My state requires filing a state S-corp return and imposes a tax. there are substantial penalties. your state could also assert penalties for failure to carry workers' compensation insurance and failure to pay unemployment insurance taxes. there is also the issue of failure to report compensation. I agree with @Anonymous_ you need a tax lawyer.
