Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

How do I handle taxes on a very large “gift” from my employers?
You should be aware that the IRS considers all gifts of cash or cash equivalents from an employer (the partnership in this case) to an employee (your husband in this case) to be wages, regardless of what the transfer is called by either party, or how it is transferred. I'd strongly recommend that you review IRS publications 535 and 15-B, which are linked in my response to the question that littleadv referred to above. I would also recommend speaking with a lawyer, as in this case, you have knowledge of the income and would not be able to claim an "innocent spouse" provision if he is convicted of tax evasion/fraud. Good luck.