Question
Final k 1 partnership for person who was actually just a employee
I have a client who receives a k 1 every year instead of a w2. The business has about 10 employees that it issues k1 for money earned during the year. I told client this was shady that they we’re doing this to avoid paying SS tax , workers comp etc. This year they finally put everyone on w2s half way thru the year someone must have reported them. My problem is when I check final k1 box pro series wants to know clients basis. Taxpayer never invested any money or property to partnership.
