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Attorney should get 1099. IN GENERAL, the part for services provided to your client should be on NEC box 1. The settlement portion should be on the MISC, box 10. The amount to include will depend on how the check was made out. My basic understanding is that if the check was paid to only one attorney, then obviously that attorney gets the 1099 for full amount. If one check is paid to co-payees, I think they each get a 1099 for the full amount. If attorney gets money and part is for co-counsel, then attorney gets 1099 with full amount, and they issue a 1099 for amount they paid co-counsel, but again, that depends on who check is made payable to. There is also the issue on what type of settlement the payment is for. Example, as the article below explains, payments for personal injuries don't require 1099s to the injured party but will be issued to the attorney, depending on how the check is made out. I'd suggest start your reading with the article below from the ABA that is written in more layman's language and is informative before going to the 1099 instructions for preparation, and then the code . The 1099 instructions do reference the applicable code sections. Also, perhaps a separate post would be better for what portions of these payments are deductible by your client. Slippery Pencil is correct that attorneys are an exception to the corporate rule. They get 1099s regardless. Anyway, here is the ABA article to start with: https://www.americanbar.org/groups/business_law/resources/business-law-today/2020-february/irs-form-1099-rules-for-settlements-and-legal-fees/

Client got a letter from the IRS that needs to be responded to in 20 days. The letter is dated 4/7/2024. I got the letter today.... The letter asks for "Any Supporting Documents Verifying Income". The client has a Sch. C with 500K of gross income and a loss on the bottom line. At least I did not get it after it was too late to respond. I am blessed that my clients are so thoughtful. 20 days to respond, 20 weeks to get a response back. Anyone taking the under on getting a response before 20 weeks? Tom Longview, TX

You already received the best answer is to have client use IRS' Direct Pay. About the above statement, don't ever assume that a bank or credit union offers overdraft protection or that the account is of the type that even has that set up.

You'll get a response stating they need more time to respond.

Entity type doesn't matter for lawyer 1099s.

You can always ask for more time to complete your response. IRS really does want to work with you, and I've never had them deny such a request. Of course that was when they still had employees....

I have used the upload toll before and it worked fine.

@Pacun and everyone, I fixed the link so that it now goes to the official IRS page for direct pay.

https://www.irs.gov/payments/direct-pay-with-bank-account

NY and CT have long battled over who gets to tax the mega incomes of big shots who live in one state and work in the other. For remote workers, NY has a "for the convenience of the employer" test, meaning if you work for a NY firm from your home in another state, you can only avoid NY tax if your employer requires that you work from home. After this passed, CT instituted the same rule for residents of NY (but no other state). I have a client who works for a NY firm from his CT home for her convenience, so she's taxed in NY except paid time off, which is taxed in CT. No kidding.

Also, you need to whom it was rented, a related party or a friend?

Sounds like the trucks some of my farmers have pulled up in. No tags, no inspection, and sometimes even no doors!

At least screenshot the tracking showing the first mailing was delivered to the Post Office before the 4/15 date. Once it leaves the taxpayer's hands and is in the custody of the USPS, I think they would have to allow a duplicate submission. You might need to go to a supervisor for that, and you also might need to use the words "Tax Court" to that supervisor. Tax Court would probably find for the t/p and they would also ream out the agent & supervisor who disallowed the re-file due to USPS failure after they have Certified Mail in their custody.

We had that selfsame vehicle as a loaner summer before last when we had car trouble on vacation! Smelled like the chickens it had been recently used to transport, and we called it the Chicken Mobile. Every time you turned it on, a different set of warnings would come up.

MI and IN have reciprocity for wages for state income tax. However, IN also has a county tax that is not included in agreement. MI residents working in IN pay the county tax to IN and can then take a credit on MI return. I've yet to see DIY software handle this correctly. Even on professional software I need to manually enter it on MI return rather than having it flow from W2. IN and IL do not have an agreement. This is due to a large difference of IN residents working in IL (Chicago) than vice versa. I'm guessing the east coast states without reciprocity has to do with similar differences rather than where a football team plays. Craziest one I've seen without reciprocity is KS and MO. TP works for company that has locations in both KS and MO portions of Kansas City. W2 has wages and w/h for both states depending on which location she works at.

Send him to IRS's Direct Pay immediately. He gets an instant confirmation of payment. You can calculate his P&I to pay, or he can wait for the IRS letter with P&I.

You'll be lucky if it's just one. I usually get 2 or 3 of those notices before the IRS actually handles the problem. Sometimes it drags on so long that I forget what the issue was.