1099 Reporting of Settlements and Payments to Attorneys

Live Webinar or Recording

November 19, 2025, 2:00 pm - 3:40 pm Eastern

Credit: CPE: 2, ATATX: 1.5, IRS: 2 (Live Only)

The IRS is heightening its scrutiny of third-party payers, especially small and mid-size businesses, and how they report payments to subcontractors, attorneys, architects, and other service providers on Form 1099-MISC. This critical compliance area can result in costly penalties if mismanaged. Join this must-attend webinar to gain clarity on how to accurately report payments, avoid common mistakes, and stay compliant with evolving IRS expectations.

Led by an expert speaker, this in-depth session will cover essential guidance on properly documenting and submitting Forms 1099-MISC, particularly when dealing with attorney fees, legal settlements, and complex third-party relationships. You’ll learn the key differences between the 1099-MISC and 1099-NEC, discover how to handle multi-member LLCs, and get a clear understanding of which payments must be reported and which are exempt. You'll also gain insights on managing multiple 1099s, understanding IRS documentation requirements, and staying on track with compliance deadlines.

• Current IRS rules for reporting attorney fees and third-party payments
• Documentation requirements and instructions for completing Form 1099-MISC
• Expanded Form 1099-MISC reporting obligations
• Reporting of punitive legal damage awards and gross proceeds
• Managing multiple 1099s for the same recipient
• Taxable vs. non-taxable (exception) payments
• Settlement agreement payment reporting guidelines
• Box 1 (1099-NEC) vs. Box 10 (1099-MISC): where to report attorney fees
• Identifying when LLCs must be reported as corporations or not
• Special considerations for multi-member LLCs with corporate ownership
• Common reporting issues with incorporated legal service providers

• Learn how to report punitive legal damage awards and gross proceeds paid to attorneys
• Understand which payments are taxable and reportable versus those that are exempt
• Discover when an LLC is reportable as a corporation—and when it is not
• Explore proper handling of multiple 1099s and how to manage settlement reporting
• Gain clarity on whether attorney fees belong in Box 1 of 1099-NEC or Box 10 of 1099-MISC
• Address reporting concerns related to incorporated legal service providers
• Understand how to report multi-member LLCs with corporate owners

Why this webinar is a benefit to attend:
This session is essential for professionals who handle vendor payments and reporting, offering clear and actionable strategies to ensure IRS compliance, reduce audit risk, and avoid costly penalties. Stay ahead of regulatory changes and streamline your 1099 reporting process with expert insights.

Level: Intermediate
Format: Recorded webcast
Instructional Method: QAS Self Study
NASBA Field of Study: Taxes
Program Prerequisites: None
Advance Preparation: None

Guest Speaker: Steven Mercatante - TIR Consulting LLC

Level: Basic

Format: Live Webcast

Field of Study: Taxes

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