you might also look at code section 3121(d)(2). it's under common law that a sole proprietor is not his own employee. In my opinion, since a sole proprietor is not an employee, the wages paid to himself would not be deductible under IRC 162 or any other code section. therefore, he would owe SE tax on his entire net SE income and would need to file amended payroll tax returns to get back the federal payroll taxes. if he paid state payroll taxes that too would likely require amended returns. if he has filed past years' returns and deducted the salary to himself, those too would need to be amended.
