Buy out 1099 or w2

[BOB W]

I have run across.....

.... something simular in the past. I my situation there was no payoff and my client just wanted out because his brothers and sisters where doing Illegal acts effecting gov't contracts. But the brothers and sisters were pushing my client out in fear that he would spill the beans, my client is very religious. The point I'm getting at is, it is not always the oddball in the mix that is the problem.

[taxtime]

Thanks Bob. I will be glad when this whole thing is done.

[BOB W]

Business

Are you involved with the business also?

[taxtime]

No. I only do the son’s individual return.

[BOB W]

Good....

... because this will turn into "who's on who's side" and if you were involved in the business you may be the one who loses.

[BOB W]

Bottomline

I don't think a 1099 will fly here. W-2, well, probably. I would keep the W-2 low key, like a payout over a couple or several years.The other option is to get to the heart of the problem to see if there is a way to save the family business from this situation.

What type of business is this? What does your client do for the business?

[taxtime]

Bob. I am leaning for the payout over multiple years. I think the w2 is the way to go. They are having a meeting today. I hope they can work it out and none of this will be necessary. I did ask my client to try and save the business and family relationship. I think that is so much more important than any of the tax implications.

[BOB W]

Good

Was your client receptive to try some reconcliation?

[taxtime]

Yes. I will keep you posted.