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Final k 1 partnership for person who was actually just a employee

fredr
Level 4

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.

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1 Comment 1
Just-Lisa-Now-
Level 15
Level 15
Just put zero for basis and sales price

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪