[jtbayly]

But it can’t be income if he has to give it back, which is the starting assumption here.

[jrochkind1]

I'd talk to a lawyer or accountant when dealing with a mystery $250K instead of making "starting assumptions". It's certainly not determined by whether a 1099 was filed.

[jtbayly]

Lol. I’d start with the very safe assumption that I’m not going to be able to keep $250k that was clearly given to me by mistake.