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Reporting payments to law firms: 1099-NEC vs. 1099-MISC
March 20, 2024
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…
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
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