1099 Reporting of Settlements and Payments to Attorneys (Course Id 1569)

Taxes - Taxes for Course Id 1569

The IRS is paying close attention to third-party payers. In particular the IRS is honing in on the reporting and due diligence activities of small and mid-sized businesses, and how they report payments made to settlement claimants, your attorney, as well as the attorney of the party that brought legal action against your organization or client.

In this 1099 reporting course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look some of the more common problems experienced by CPAs, accounts payable, and tax departments related to documenting, validating, and reporting payee information using the IRS Forms W-9/1099/W-2 in situations involving settlement and attorney payments while offering solutions and best-practices for addressing related reporting issues.

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 1569

Course Learning Objectives

• Discover how to report punitive legal damage awards and gross proceeds paid to attorneys
• Learn about recent changes in the law such as the new Form 1099-NEC and learn how to handle the differences between information returns such as the Form 1099-NEC box 1 and Form 1099-MISC boxes 3, and 10 when reporting settlement payments and payments to attorneys
• Identify which settlement payments are taxable and reportable and which fall under reporting exceptions
• Obtain the tools to create your settlement payment checklist as well as incorporate important best practices
• Determine how and when to obtain your attorney payees TIN

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