We are making court-ordered payments for a settlement, . . .
We are making court-ordered payments for a settlement, but we do not have the TIN numbers for reporting. How should we handle this situation?
This is what you need to do:
We paid a settlement with a check payable to two . . .
We paid a settlement with a check payable to two parties. Do we send a Form 1099 to each party whose name is on the check?
It is crucial you get this right. Here is what to do:
We paid a settlement with one check, payable jointly to . . .
We paid a settlement with one check, payable jointly to two attorneys involved in the proceedings on behalf of the claimant. We do not have any information as to what amount each attorney took from the check. Do we file Form 1099-MISC for one or both attorneys?
This is how you need to report:
We paid a settlement with one check for the full . . .
We paid a settlement with one check for the full amount payable jointly to the lawyer and the claimant. Do we report this with one or two Forms 1099?
This is how to report:
I will be crediting client accounts with money from a . . .
I will be crediting client accounts with money from a legal settlement next month. It pertains to trade adjustments that were originally reported on a 1099-B for 2006.
The question is how do I report these payments to the IRS? I don't think correcting the 2006 filing would be correct. Should they go on a 1099-MISC for 2009 as "other income" (Box 3)?
Here is exactly what you should do:
Our institution was involved in a copyright infringement lawsuit, for . . .
Our institution was involved in a copyright infringement lawsuit, for which we received compensation. X amount of that were royalties owed to two of our scientist. The royalties were paid and reported, but we failed to realize that part of that money was for interest owed. We've since figured out how much was royalty and how much was interest, my question is how do we correct our 1099's. Is interest reported on a 1099MISC and if so what box?
Be careful and this is why:
We are an insurance company and make payments . . .
We are an insurance company and make payments to claimants for reimbursement of out of pocket expenses due to a covered claim. A question arose concerning the need to get the claimant's tax id even if the payments are not reportable...below is the question posed by the Claims Department Supervisor:
" we have an insured that goes out of pocket for expenses to get his/her business up and running and them makes claim for these expenses, do we issue the check with the insured’s Tax ID number? If we do not have to include the Tax ID number, how do we issue the check as this is paid from the Income Loss line within the reserves and this forces the adjuster to use a TIN.
In the case where the expenses are projected, do we include the Tax ID number on these expenses?"
The loss of income portion of business interuption is repotable in box 3 of the 1099-MISC.
Any information you can provide will be very helpful.
You should handle this by...
If we're making a joint payment for a settlement to . . .
If we're making a joint payment for a settlement to a lawyer and a corporation is the corporation exempt from reporting? When it says that legal is always reportable, does this mean only legal entities (like a law firm) or all legal matters such as settlements?
Here are your answers...
Say an insurance agent has a $25,000 deductible on her . . .
Say an insurance agent has a $25,000 deductible on her policy. A claim is made against the insurance agent who then hires an atty and gets billed $40,000. Agent pays atty first $25,000 and agent's ins company pays the remaining $15,000. The ins company issues a 1099 to the atty for $15,000. Does the agent have to issue a 1099 to the atty for the remaining $25,000?
When determining what our reporting obligations may be we have to ask ourselves two questions: (1) Who am I paying? and (2) What am I paying for? BOTH must be reportable for us to have to report.
This has to do with Professional Liability claims. Say an . . .
This has to do with Professional Liability claims. Say an insurance agent has a $25,000 deductible on her policy. A claim is made against the insurance agent. Agent hires an attorney and gets billed for $40,000. Insurance agent pays attorney $25,000 (up to her deductible) and agent's insurance company pays the other $15,000. What 1099's need to be issued? Thanks.
This revolves around several key issues as follows: