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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14420
Experience:  15years with H & R Block. Divisional leader, Instructor
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DO MY CLIENTS HAVE TO FILE A 1099 MISC ON THEIR ATTORNEYS

Customer Question

DO MY CLIENTS HAVE TO FILE A 1099 MISC ON THEIR ATTORNEYS EVEN IF THE ATTORNEY IS A PARTNERSHIP OR A CORPORATION. AND THEY FILE ONE FOR ME AN ENROLLED AGENT AS I AM NOT A PARTNERSHIP OR A CORPORATION. ATTORNEYS ARE DIFFERENT?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

First Form 1099-MISC is used only when payments are made in the course of your trade or business.

Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S Corporation) do not require a 1099MISC.

Attorneys' fees are reported in box 7 if made to a corporation. Of course you

report in box 14 payments that are made to an attorney in the course of your trade or business in connection with legal services, for example, as in a settlement agreement.

The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys' fees (in box 7) or gross proceeds (in box 14).

After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.
I know rating takes an additional step and I truly appreciate it when you take the extra time!

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information