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wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 17208
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
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Hello, I am a physician/partner in a medical practice. I routinely

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Hello, I am a physician/partner in a medical practice. I routinely bring in the most money to the practice, which in turn, generates bonuses each year for which I must pay taxes.
Unfortunately, because my partners have borrowed money from the practice, the bonuses that I generate each year cannot be paid to me in full (or even close), even though I must pay taxes on the full amount. We now are on the verge of receiving an infusion of money for selling the practice to a large hospital. I have said the practice should use this money to pay down the money owed to partners such that each partner is left being owed a similar amount by the time of practice closure. However, my partners refuse to do this, since they are owed not much money or any at all. In fact, instead of paying me the money owed, they have voted to use a large amount to be given as equal distributions to all partners involved. I would be left still being owed over $200,000-300,000 that I have already paid taxes on. What are my rights? Thank you for your consideration.
MM

wallstreetfighter :

Hello and welcome. My name isXXXXX am a Licensed practicing attorney and my goal is to provide you with excellent service today.

wallstreetfighter :

This is an unfortunate situation, as a partner and shareholder, you have rights to object to the way the other partners handle the sale of the partnership, what you need to do is assert your legal rights, and consider a lawsuit against the partnership for the money owed to you,

wallstreetfighter :

in fact you may want to consider forcing a dissolution of the partnership,

wallstreetfighter :

you will have to review the partnership agreement to see if you have any further rights, however, if the majority of partners have made decisions adverse to you, your only legal options are to bring a lawsuit to force a Court to have the partners pay you the amount owed.

Customer:

Do I have any rights to appeal to the Labor Dept for unpaid wages?

wallstreetfighter :

A major issue in these type of partnerships is the clauses and language in the operating agreement,

wallstreetfighter :

you need to review the contract to see if issues are handled by Arbitration, if it is, you need to hire an arbitration attorney to start the process,

wallstreetfighter :

the department of labor would only handle employee issues, an unpaid bonus, and breach of contract issue would not be handled by the labor department,

wallstreetfighter :

If they failed to pay you your regular salary, they would be violating the FLSA, and State wage laws, they would the labor office at that point will intervene,

Customer:

Since they report my salary and entire bonus as income for me, that I must pay taxes on, can't my unpaid bonuses be determined to be regular wages?

wallstreetfighter :

are you issued a w2 or 1099 for these?

Customer:

In the past, up until 2012, a W2. In 2012, they used a 1099.

wallstreetfighter :

if you were issued a 1099 they are not counting it as part of your wages,

wallstreetfighter :

however, you should have the tax reporting investigated by your accountant, as the partnership may have done this in violation of your contract, and IRS rules.

Customer:

Thank you so much for your advice.

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