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Who gets the 1099 for client compensation paid through a law firm?
October 24, 2023
Q. My company made an error while conducting business operation with one of our clients. As a result, my company decided to compensate the client. However, the payment won't be made directly to the client but to the law firm which represents the client. Should my company issue a 1099 to the law firm? If yes, which 1099 should be issued --1099 MISC? I would like to mention, this is not an official settlement agreement.
A.
(Answered by IOFM's third-party tax experts)
The Internal Revenue Code…
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