No, do not assume zero. What you are seeing is where Mononobe-Okabe just blows up because the assumptions of the method are violated. We've run into this problem with very severe earthquakes on spillway walls that retain dam embankment.
M-O is just Coulomb active theory extended to have a pseudostatic horizontal load in addition to the gravity load. There is an angle (called theta) in the paper I have) that increases with increasing PHA. Inside the square root, there is a term sin(phi-beta-theta) that goes to zero, causing the term inside the square root to have a zero in the denominator, and kaboom, the equation blows up. I believe that causes the base angle of the slide mass, called alpha, to approach zero, which makes the mass of the slide approach infinity. With level backfill, that happens when kh=tan(phi), e.g., 0.577 if phi=30.
I have refs for a couple of papers that purport to improve on that. Can't vouch for them, however. I won't type the whole list out unless you really want them and have access to "Geotechnique" and "Soils and Foundations" and "Geotechnical and Geological Engineering."