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1099 Attorney/Plaintiff Reporting
August 6, 2026
Q. We have the below scenario but we are trying to find the IRS source that backs this up:
An individual plaintiff (whom we'll call C) in a suit for lost profits against corporation P, is represented by Attorney A. The corporation settles the suit for $300,000, all of which will be included in the plaintiff's gross income. The attorney requests the corporation to write two checks, one payable to the attorney for $100,000 for compensation of legal services and the other to the plaintiff for…
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