Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 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.
In this course, you will learn what your organization needs to be doing now to meet reporting deadlines and ensure compliance. 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: February 2024
Topics Covered
- 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
Learning Objectives
- Identify Form 1099-NEC and 1099-MISC reporting requirements for legal settlements
- Identify how to 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
- Recognize how to handle the non-fixed and determinable reporting exception for settlement payments
- Identify which payments are taxable and reportable and which are considered 1099 reporting exceptions
- Recognize how to handle settlement agreements that may involve W-2 or 1099-INT reporting
- Identify whether attorney fees are reported in box one of the 1099-NEC or box ten of the 1099-MISC
- Identify when an LLC is not reportable as a corporation and when it is as a company
- Identify how to report law firms and partnerships that are single versus multi-member LLCs
- Recognize how to address reporting issues cropping up with incorporated legal service providers
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Steven D. Mercatante
Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center for Competitive Management, and more.
He is also a published author, with numerous articles published on tax and financial law, and he has authored and published a series of tax guides on topics such as: W-9/1099 & W-8/1042-S compliance and reporting, payment cards, U.S. State & Local Reporting, worker compensation issues, international tax compliance, and more.