Solved

Business Filing Type Change

Forum|Forum|3 years ago
August 4, 2022
2 replies
0 views

Pretty sure my now ex husband was sneaky with hiding finances the last couple of years of our marriage. Just wondering if there was a benefit for him to change tax filing from a K-1 to W-2. He owned his own business and was the only employee and no partners. I was NEVER privy to his business finances and he started "making less" the last year or so we were together. We always filed jointly and the last couple of years the way he filed changed. Not going to pursue anything, just wanted out, but just wondering for myself. Thanks!

Not A Product Question

Best answer by Anonymous_

If you are "just wondering", the answer is "Yes, there are a ton of ways to hide or conceal income/assets" and that includes using one or more business structures to do so.

A

Anonymous_Answer

Employee

If you are "just wondering", the answer is "Yes, there are a ton of ways to hide or conceal income/assets" and that includes using one or more business structures to do so.

P

Pleasehelpme9Author

Thanks! I am really wondering if that specific change (from filing with a K-1 to a W-2) would be used for that purpose.

A

Anonymous_

Employee

It depends. Is the entity an LLC (partnership) or an S corporation.

Owners (officers) of S corporations have to be paid a reasonable salary for services they perform for their S corporations (which would involve issuing a W-2).

Carl11_2

Employee

Hiding money from the taxing authorities, as well as others is quite easy and there's numerous ways to do it. Very few of them legal.

It's quite obvious that you're just not knowledgeable on this business and taxes stuff. That's okay, as it's not like you learn this stuff through osmosis. You really should seek professional help with this, as this public user-to-user forum is not the place to be addressing this and "trying to understand and figure it out". Incorrect assumptions can (and will) cost you dearly. If your divorce attorney is not knowledgeable in this area, then they should be able to refer you to a tax attorney or CPA who is. They should be able to educate you on what's going on, well enough that you can develop a basic understanding without needing a masters degree from Harvard Business School.