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IRC section 6041(a) generally requires all persons engaged in a trade or business and making payment in the course of such trade or business to another person of fixed or determinable gains, profits, and income of $600 or more in a calendar year to file an information return with the Service. IRC section 6041(d) provides that each person required to make the return described in IRC section 6041(a) shall furnish to each person for whom a return is required a payee statement.Was the settlement connected to your trade or business? If not then the payment is not reportable by you.
In lawsuit settlements, the person with the obligation to report payments to the plaintiff will generally be the defendant or its insurer rather the plaintiff's attorney. In addition, the defendant or its insurer will also generally be responsible for reporting payments to the plaintiff's attorney.