The Federal tax code and corresponding regulations require a lawyer to send a 1099-MISC form to certain individuals (and non-incorporated business entities) who receive disbursements from the lawyer's trust fund for legal awards and settlements.
1099-MISCgivings: Reporting Taxable Awards & Settlements
The Federal tax code and corresponding regulations require a lawyer to send a 1099-MISC form to certain individuals (and non-incorporated business entities) who receive disbursements from the lawyer's trust fund for legal awards and settlements. Writing on behalf of a law firm, an accounting firm reader has asked about the proper way to report such disbursements.
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