I appreciate the feedback, but my lawyer can't force a government entity to comply with IRS reporting requirements. We discussed this in conference with the City's lawyers, who are not as fearful of the IRS as an individual employer might be. The City's lawyer should advise them to issue a W2, but the City refuses to comply. Actually, there are dozens of plaintiffs in this case, so the City is going to get multiple IRS inquiries, which might prompt them to change their minds, but I doubt it. Governments do not have the same incentives to comply with such things, since no individual will ultimately be held accountable, just the taxpayers (eventually.) Once again, thanks for your help.
