@George1111 wrote:
Thank you for the input. If you are person B or C (which I am) and you report your portion of the income how do you report (or let the IRS know) that this specific portion of the income already had the federal tax withdrawn from it but under person A's name?
That's a part of the problem I missed in my first answer. There's no way to do that that I know of. I suspect it was a big mistake to not have the payor issue 3 W-2Gs.
I think you need professional advice. It might be necessary for person A to report and pay tax on the entire amount of the winnings. If the withholding was insufficient, persons B and C send some money to person A to cover the shortfall. If there was excess withholding, person A sends some money back to person B and C.
I can't think of any clean solution to your problem, sorry.
