- Membership
- Certification
- Resources
- Events
- Community
- About
- Help
1099 Reporting for Personal Injury Settlement Payments to Law Firms
August 7, 2026
Q. We have payments that we make for tort lawsuits for personal injury cases. When we make the payments, the legal instructions require us to make a single check out to "the law firm" and the "plaintiff," to the law firm's address. The law firm takes its fees and then provides payout to the plaintiff.
What needs to be 1099'd? The check for the full amount to the law firm as gross proceeds to an attorney, as well as the full amount of the check to the plaintiff as "other income"? As we know, the…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
