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Is a Settlement Payment for Stock Consideration Reportable on a 1099-MISC or 1099-B?
April 8, 2025
Q. We are an insurance company who made a settlement payment to a claimant. We reported this payment in box 3 as other income on a 1099-MISC issued to the claimant. The settlement agreement states that the claimant's position is that the settlement payment (less attorney's fees and reimbursement for mediator's fee) is in consideration of their transfer of stock and is therefore a sale of stock. Is this fixed and determinable income to the claimant that should be reported on a 1099…
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