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1099-MISC Reporting for Property Damage Payments Made to Law Firms
February 5, 2025
Q. The Master Guide to Form 1099 Compliance mentions an IRS Private Letter Ruling explaining why in general there is no Form 1099-MISC reporting for property damage payments. Is that also the case when payment is made directly to a law firm? Or would the law firm receive a 1099-MISC regardless?
A.
(Answered by IOFM's third-party tax advisor)
If money is transferred to a law firm, you'll always report it in box 10 of 1099-MISC even if reporting is not required to the plaintiff. Only a few types…
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