We will be issuing checks later this year to settle a royalty owner class action lawsuit regarding severance tax refunds and interest on severance tax refunds. I presume the interest payments would be reported on Form 1099-INT, correct? What about the severance tax refunds; how would they be reported, if at all? Would there be any special 1099 reporting requirements that we should consider ?

4 claimants, but just one attorney payment. Would we allocate the entire attorney portion to all 4 claimants, since we do not know how much is attributable to each? Total payment = $57,500 (made to attorney). $5000 is attrributable to each claimant, leaving $37,500 attributable to the attorney. Would you say that the atty gets $57,500 on his 1099 (Yes), and each claimant gets $42,500 ($5,000 plus the atty portion of $37,500)?

We are in a title dispute over some royalty payments, and have stopped sending royalty payments to certain owners. The payments are (starting in 2010) to be made directly to an escrow account with the courts. Then once the dispute is settled, the royalty payments will be made from the escrow account. When are 1099’s required in this instance, and are we the one responsible for preparing them if required or is the court required to file the 1099's? Also, do we have to provide a 1099 to the Clerk of the Circuit Court for the amounts paid into the escrow

We had a class action matter that in addition to the class action settlement, awarded 4 claimants $5,000 each plus legal fees of $37,500. We paid out the $57,500 to the attorney directly. Typically, when reporting awards to claimants, the attorney fees are not excluded. In a class action settlement, however, when the payment goes to a class representative, such as an attorney, we report only to the attorney; we do not do separate reporting to all the class members, nor do we allocate attorney fees to class members. With this matter, since there are 4 claimants and this was in additon to the class action settlement, do we need to do a 1099 for $5K to each of the 4 claimants for their share, PLUS allocate out the $37,500 in attorney's fees to each claimant? What do you see as the proper way to handle this $57,500 payment. We definitely will report the entire amount to the attorney in Box 14 - just need clarification on what needs to be reported to the 4 claimants.

We made a legal agreement with a company to reduce their debt owed to us by $7160.00. We are not a financial institution and are not in the business of lending money. From reading the 1099-C instructions, it appears that this form is not required. It does not look like it is reportable on a 1099-MISC. Is this debt cancelation reportable at all?

There was a lawsuit from John Doe and I issued a check payable to his lawfirm on behalf of John Doe. The payment was for condemnation matter and it was awarded to John Doe. Do I report the amount to 1099-Misc box 2 Royalties or Box 7 Nonemployee compensation?

In addition to my initial question to you earlier......The fees I am paying a law firm are attorney escrow fees, recording fees, title insurance premium, and Partial reconveyance fee to Trustee. The total amount of the invoice payable to the law firm is over the $1,000.00. The law firm is acting as a closing agent in a real estate transaction, so I do NOT need to report to 1099, correct???

I am paying an escrow fee, attorney escrow fees. Do I report this to 1099 reportable?

We have been receiving market timing settlement checks for our former clients and we have been reopening the accounts for these clients and paying the funds received to their account. Are these market timing settlement payments required to be reported on form 1099?

When we garnish the wages of an employee, or garnish amounts owed to a contractor, and the garnishment is paid to an attorney, to whom are we responsible for reporting that amount?