"Alpha Zip" <alphazip[at]yahoo.com> wrote:

- quote -

I agree with the previous responses about you not being
required to issue a 1099 if the payment was not made in
course your trade or business. However, I would add that
this applies only if the plaintiff was paid by you directly.
If the settlement was paid through your attorney, or if it
was paid through the plaintiff's attorney, then whichever
attorney paid the settlement amount to the plaintiff must
issue a 1099 because the attorney would have paid the funds
in the course of his or her trade or business.

Barney Byrd

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Alpha Zip wrote:

- quote -

If your payments was not in the course of a trade or
business, and you indicate that it was not, then no 1099 is
required.

cheer$,
Harlan Lunsford, EA in LA

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"Alpha Zip" <alphazip[at]yahoo.com> wrote:

- quote -

Just off the top of my head and with the caveat that if you
were my client I WOULD research this - I don't think you
need to issue a 1099 in this case since the payment was not
related to a trade or business.

Good luck,
Gene E. Utterback, EA

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Alpha Zip wrote:

- quote -

My apologies to all if I've already posted this.

You send a 1099-MISC (given the circumstances) ONLY if
you're in a business and the payment is related to that
business. But "business" includes being an employee
in this context.

If you DO send it, you send the first copy with a 1096
transmittal form to the IRS, possibly a copy to the state,
a copy to the individual, and keep a copy.

_I_ found the instructions simple the first time I had
to do it, but your mileage may vary.

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Alpha Zip <alphazip[at]yahoo.com> wrote:

- quote -

Since this was not paid by you in connection with your trade
or business you do not send in a 1099.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I was sued (I'm an individual, not a company) and my
attorney reached an out-of-court settlement with the other
person's attorney. The settlement agreement specifically
denied the charges he had made (emotional distress). My
question is: how do I report this payment? I assume I send a
1099. Can I send it to the IRS with a copy to the person
who sued me (I do have his SSN), or do I have to send it to
his attorney (I do not have his TIN)? I have read that
businesses now have to send the 1099 to the attorney, but
I'm not a business. I would prefer to just let the person
who sued me settle with the IRS on how much he got vs. his
attorney's share. Also, is the 1099 self-explanatory, or is
there anything I should know about how to complete the form?
Thanks.

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