1099 Reporting For Legal Settlements

December 11, 2025
December 11, 2025

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Q. I'm working with our legal group on requiring W9s for individuals that we are making settlement payments to their attorney directly. Most of the time we issue two checks where we pay the individual's attorney their fees and issue another check to the individual. In those cases, we get both W9s. For some settlements, we only pay the attorney and do not get a W9 for the individual. It is my understanding that we need to send a 1099 to the attorney and the individual even though we never sent a…

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