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Can Title Co rewrite an Escrow holdback check?

Washington

Seller decided not to do repairs last minute and did escrow holdback. Buyer could not find contractor in time of closing and was instructed to give the name of someone they trusted instead in order to close on time. Buyer coordinated all bids, permitting, etc. and trusted person was supposed to cash the escrow check and write out personal checks to pay contractors. But this person (who originally agreed to do this) is now refusing to cash the check stating that they fear they could face tax liabilities (even though they will not be keeping any of the money) or possibly other legal consequences for doing so (such as acting as a general contractor without the credentials). Is it true this person would be taxed or face other legal consequences for doing this? Can Buyer go back to Title company and get check rewritten with contractor's name now that he has one? Amount $13k, WA State.

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