1099 reporting of a legal settlement
August 1, 2019
Q. We have a legal settlement. The settlement agreement intends the total settlement amount to represent legal fee, compensation for attorney's fees, and the final payment due and owing pursuant to a vendor. Do we need to report this total settlement amount to the Box 3? or the final payment that we owed needs to be reported Box 7 and rest of them needs to be reported Box 3? The settlement check will be issued only to the attorney.
(Answered by COKALA Tax Information Reporting Solutions,…
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