Client has an H1 B Visa to work in the US. The Visa states that he can not be self-employed but rather act as a w-2 employee. Employer issued client a w-2 for part of the year and a 1099 for the rest of the year. Is my client in violation of the Visa? Do we need to report it? Recommendations.

I would file form SS-8 with the IRS. This form SS-8 will get the IRS to review the 1099 filing and possibily reclassify the 1099 income as W-2 wages. If that happens, then your client will not be inviolation of his work visa and it will make the employer pay a portion of the FICA taxes.

The other option is to notify the Dept of Naturalization of the 1099 and explain it completely. Full disclosure is the best advice because this 1099 will surface and cause problems for your client in the future.

Good luck.