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Reporting payments to law firms: 1099-NEC vs. 1099-MISC

March 20, 2024

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Q. The company I work for made a payment to a law firm. The payment was sent to the law firm's Trust bank account. This was not a payment for a settlement. Should this payment be reported on 1099 NEC box 1 or should it be reported on 1099 MISC box 10? No services have been rendered yet and the payment was sent to the law firm's Trust bank account, so I don't think it should be reported on NEC Box 1. However, it is not a payment for a settlement so I don't think it should reported on Form 1099…

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