According to IRS we are required to send a 1099 . . .
ACCORING TO IRS WE ARE REQUIRED TO SEND A 1099 TO BOTH THE CLAIMANT AND THE ATTORNEY.
1. CAN A CLAUSE IN THE SETTLEMENT LEGAL PAPERS STATING THAT A 1099 BE SENT TO THE ATTORNEY AND MR X WILL BE RESPONSIBLE FOR ANY FEDERAL STATE OR LOCAL TAXES DUE EXEMPT OUR REQUIRMENT TO REPORT TO BOTH THE CLAIMANT AND THE ATTORNEY?
Please be careful. This is why...
How should we report a payment made directly to a . . .
How should we report a payment made directly to a Qualified Settlement Fund?
Please be careful in such situations as there are a number of issues that can come into play.
Luckily this situation is fairly straightforward.
You will report the qualifed settlement fund payment as follows:
We have issued a check directly to a claimant, but . . .
We have issued a check directly to a claimant, but included the attorney on the check as "c/o". Are we responsible for reporting this payment to the attorney?
Here is what you need to know:
Is there a minimum threshold amount when reporting payments to . . .
Is there a minimum threshold amount when reporting payments to attorneys and law firms?
Thresholds can vary considerably. In these situations...
We have requested the TIN for an attorney to whom . . .
We have requested the TIN for an attorney to whom we are planning to make a payment. He refuses to supply the information, claiming attorneys are exempt from reporting. Is this truly the case?
Be careful and here's why...
How should we report our Form 1099-MISC when we made . . .
How should we report our Form 1099-MISC when we made a payment directly to an individual attorney, but we have discovered that the W-9 he gave us showed his firm's name and TIN?
Be careful. Attorney payments are never easy under current IRS rules.
Nevetheless, this is how you should report:
If the check was payable to the individual, then...
We paid a settlement to a former employee. Do we . . .
We paid a settlement to a former employee. Do we report on a Form W-2 or 1099?
This is what you should do...
To whom do we report a payment when we send . . .
To whom do we report a payment when we send two checks--one to the attorney and one to the claimant?
This is how you should report:
We cut a check with joint payees for a payment . . .
We cut a check with joint payees for a payment reportable on a Form 1099. Are we required to issue 1099s to each of the listed payees?
Here is what you should do...
When we garnish the wages of an employee, or garnish . . .
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?
If a garnishment is made payable to an attorney or law firm then...