Attorney Payments and Settlements

I am paying a Settlement of Property Damages to the claimant. The Claimant is Incorporated. Do I issue a 1099 reportable?

There are two issues here. . . .

My company sometimes make payments to indiviuals to vacate a property in an efficient and orderly fashion. How is this reported if two individuals, with separate SSN's, are paid on the same draft? Do I just send the 1099MISC to the first person named or do I send a 1099MISC to each of them? If both, what amount do I report - the full amount to each individual or half to each?

The general rule is that on . . .

We have a settlement matter where the Settlement Agreement states payment for, "physical injury due to emotional distress". All my research I did to create the guidelines I use for determining reportable damages do not cover physical injury due to emotional distress, just physical (personal) injury (reportable) or emotional distress due to physical injury (reportable). Strict emotional distress would be non reportable. What is your opinion on "physical injury due to emotional distress"? Reportable? For me I am struggling with whether in this case we factor in what caused the physical injury or not. If we do not, then it becomes a non-reportable payment.

It appears you may be somew . . .

I am part of a title insurance company. One of our insured did not have their title handled correctly when they were divorced. The short story is that a Quitclaim Deed is needed from the ex in order for the insured to be able to sell their property. The settlement payment made to the ex was over $600.00. Is this reportable on a 1099MISC, and if so, which box should this be reported in? One other wrinkle. The ex happens to currently be in prison. Does this affect the reporting requirement at all?

First, let’s look at . . .

We are a title insurance company. Our insured owes a city for penalties and interest on a CDBG (Community Development Block Grant) loan which my company decided to settle. The settlement (over $600) was paid to an escrow company (non-incorporated) that is the City's contract collection agent for these loans. Is the payment reportable and to whom, the city or the collection agent? PS: My interpretation is that the beneficiary of the payment is the city and is thus non-reportable (government organization). I figure the city owes the agent a 1099MISC for any payments made to the agent. Your answer above will determine whether I am correct.

Any time you are confrontin . . .