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1099 for trust account funds disbursed over different years
February 24, 2023
Q. Background: In 2022, we sent $10,000 to a law office as a retainer. The funds went to a "trust account" they maintain to hold funds on behalf of clients. As attorney accrued time on the case, I periodically authorized him to transfer funds out of the trust account. At the end of 2022, I had authorized transfer of $7,550. I approved transfer of the remaining $2,450 in 2023. We sent 1099-NEC (Box1) to the Law office showing payment of $10,000 in 2022. The law office thinks the form should show…
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