Course Description

The IRS is paying close attention to third-party payers. In particular the IRS is honing in on the reporting and due diligence activities of small and mid-sized businesses, and how they report payments made to settlement claimants, your attorney, as well as the attorney of the party that brought legal action against your organization or client.

In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look some of the more common problems experienced by CPA’s, accounts payable, and tax departments related to documenting, validating, and reporting payee information using the IRS Forms W-9/1099/W-2 in situations involving settlement and attorney payments while offering solutions and best-practices for addressing related reporting issues.

Learning Objectives

• Discover how to report punitive legal damage awards and gross proceeds paid to attorneys
• Identify recent changes in the law such as the new Form 1099-NEC and learn how to handle the differences between information returns such as the Form 1099-NEC box 1 and Forms 1099-MISC and boxes 3, 7, and 10 when reporting settlement payments and payments to attorneys
• Identify which settlement payments are taxable and reportable and which fall under reporting exceptions
• Obtain the tools to create your settlement payment checklist as well as incorporate important best practices
• Determine how and when to obtain your attorney payees TIN

Prerequisites

• None