1099 Attorney and Settlement Reporting for AP and Tax Professionals (Completed)

Date: Friday, January 28, 2022
Instructor: Steven D. Mercatante
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

The IRS is paying close attention to third-party payers, including small and mid-size businesses, and how they report payments made to attorneys and claimants on Forms 1099-NEC and 1099-MISC.

During this must-attend session we will explore:
• How to comply with IRS rules when reporting attorney fees and other third-party payments
• What to do when you must 1099 report settlement payments to claimants
• Documentation requirements and instructions for Forms 1099-NEC and 1099-MISC

Plus, you will learn what your organization needs to be doing now to be meet reporting deadlines and ensure compliance. In this program, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look at some of the more common problems related to documenting, validating, and reporting 1099 settlement/attorney payments.

Topics Covered

  • Discover Form 1099-NEC and 1099-MISC reporting requirements for legal settlements
  • Address reporting issues cropping up with reporting settlement payments involving back-pay, liens, garnishments, personal physical injuries, emotional distress, three or more parties involved in the payment, punitive damages, medical testimony, backup withholding, medical reimbursements, property issues, and more
  • Get a detailed explanation breaking down how to handle the non-fixed and determinable reporting exception for settlement payments
  • Find out which payments are taxable and reportable and which are considered 1099 reporting exceptions
  • Handling settlement agreements that may involve W-2 or 1099-INT reporting
  • Discover whether attorney fees are reported in box one of the 1099-NEC or box ten of the 1099-MISC
  • Learn when an LLC is not reportable as a corporation and when it is as a company
  • Discover how to report law firms and partnerships that are single versus multi-member LLC's
  • Address reporting issues cropping up with incorporated legal service providers

Learning Objectives

  • Recognize how to comply with IRS rules when reporting attorney fees and other third-party payments
  • Identify what to do when you must 1099 report settlement payments to claimants
  • Describe documentation requirements and instructions for Forms 1099-NEC and 1099-MISC

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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