1099 Reporting Attorney and Settlement Payments

Author: Steven D. Mercatante

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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 course 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 meet reporting deadlines and ensure compliance. 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.

Publication Date: October 2025

Topics Covered

• IRS Focus: The Tax Gap
• July 2025 Updates
• The 2025 Form 1099-NEC
• The 2025 Form 1099-MISC
• The W-9
• Attorney Payees Causing Problems
• Attorney and Settlement Payees
• 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
• State documentation requirements and instructions for Forms 1099-NEC and 1099-MISC

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None