1099 Reporting Attorney and Settlement Payments (Completed)

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The IRS is increasing scrutiny on how businesses report attorney fees and settlement payments, and failure to comply can lead to costly penalties. This course provides practical guidance for navigating the complex rules governing Forms 1099-NEC and 1099-MISC. Learn how to properly document, validate, and report payments to attorneys and claimants while meeting IRS deadlines and avoiding compliance pitfalls.

We’ll cover which settlement payments are reportable, when reporting is required on Form 1099-NEC versus 1099-MISC, and what documentation you need to maintain. You’ll also gain insights into common mistakes businesses make and how to prevent them. Whether you’re managing vendor payments or handling legal settlements, this session equips you with actionable strategies to stay compliant and reduce risk.

In this course, 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

• IRS Focus: The Tax Gap
• Recent Updates
• The Form 1099-NEC
• The Form 1099-MISC
• The W-9
• Attorney Payees Causing Problems
• Attorney and Settlement Payees and Payments Processing
• Attorney and Settlement Reporting

Learning Objectives

• Explain 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
• Identify which settlement payments are non-reportable
• Determine when a settlement payment is reportable, but not on the Form 1099-MISC
• Apply documentation requirements to ensure compliance and audit readiness
• Implement best practices for validating and processing attorney and settlement payments

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None