It’s 1099 season. For those of you who paid a law firm for legal services this year, here are three tips:
1. Payment for legal services goes in box 1 of Form 1099-NEC. Do not use Form 1099-MISC. Form 1099-MISC box 10 “Gross proceeds paid to any attorney” is for when you are paying a plaintiff a settlement and pay the attorney the proceeds.
2. You must send a Form 1099-NEC even if the law firm is a corporation.
3. You do not have to send a Form 1099-NEC if the total amount paid to the law firm in 2023 was less than $600.
Mike Baker frequently advises with respect to Form 1099s. He possesses a breadth and depth of experience in tax and employee benefits & compensation law that spans multiple decades. For additional information, please contact mike@mbakertaxlaw.com.