Nephew being paid by an aunt

[Jeter2016]

Taxpayer has developed dementia. The courts have appointed a conservator who is paying the bills for my client.
I recently received the tax package and on a piece of paper the conservator wrote a note that the nephew (who lives with my client) has received
$16,000.00 to care for his aunt. What was said to me was that the court has agreed for a payment of $500.00/week be given to the nephew to care for the aunt. I asked if a W-2 was issued or at the least a 1099 and was told that nothing was given to the nephew in 2015.
My question is now what do I do. The nephew appears to me to be a household employee, yet he did not receive a W2 or 1099 from the aunt, through the conservator...what do I do now at this late date.
Thanking everyone in advance

[TAXNJ]

contact the conservator

Taxpayer has developed dementia. The courts have appointed a conservator who is paying the bills for my client.
I recently received the tax package and on a piece of paper the conservator wrote a note that the nephew (who lives with my client) has received
$16,000.00 to care for his aunt. What was said to me was that the court has agreed for a payment of $500.00/week be given to the nephew to care for the aunt. I asked if a W-2 was issued or at the least a 1099 and was told that nothing was given to the nephew in 2015.
My question is now what do I do. The nephew appears to me to be a household employee, yet he did not receive a W2 or 1099 from the aunt, through the conservator...what do I do now at this late date.
Thanking everyone in advance

Confused as to what return(s) you are going to prepare? When you say a "received the tax package", what does that mean?

Recommend the nephew or whoever your client is to contact the conservator who has a fiduciary responsibility as to what the conservator's accountant and attorney have done and how it was setup. That is what they are getting paid to do.

Based on what you generally have posted - someone not doing their job?

[Jeter2016]

Confused as to what return(s) you are going to prepare? When you say a "received the tax package", what does that mean?

Recommend the nephew or whoever your client is to contact the conservator who has a fiduciary responsibility as to what the conservator's accountant and attorney have done and how it was setup. That is what they are getting paid to do.

Based on what you generally have posted - someone not doing their job?

The tax return is the Individual 1040 and the package is the necessary documents to prepare the 2015 Federal and State Individual return.
Thank you,

[TAXNJ]

What's

The tax return is the Individual 1040 and the package is the necessary documents to prepare the 2015 Federal and State Individual return.
Thank you,

What's in the tax package? Maybe it was included in the package. Think you need to get in writing other than a note how it was handled (properly) in order for you to know how to prepare the return.

Situations like this we usually get the attorney involved (not saying you should) if the person(s) responsible for keeping the records and the records may be questionable. That 16k may or may not change to a different amount later. Seen situations where it happened especially when originally the amount was on a note.

[TaxGuyBill]

I agree, get some confirmation or documentation that the Aunt paid the nephew $16,000. Again, make sure the AUNT paid it, rather than a health insurance company (such as Medicaid).

If that is what was done, and if you are filing Aunt's tax return, you need to include a Schedule H. If no FICA was withhold, Aunt will probably pay the full 15.3% (plus FUTA).

Just doing the income tax return may not directly make you responsible for filing the late W-2. You should contact the conservator (preferably in writing), letting him know that a W-2 is required and ask if they want you to file it (get their answer in writing, especially if the answer is "no"). Let them know it is late, and that late penalties will apply. Also inform the conservator of any need for State Unemployment, Worker's Compensation, or other State requirements. If you are not sure of those, inform him that they probably ARE State requirements such as those, and to contact somebody to learn about what is required in that State.

[TAXNJ]

Guessing game

Before your post turns into a guessing game find out from the person responsible for the accounting and if they filed all necessary tax forms prior to telling them what needs to be done.

Again consult with the attorney and accountant as to what was done and not done and why before you assume any responsibilities that may not be yours.