Tax Law Expert Rob Wood--Can Settlement Checks Obviate Withholding and Form 1099?

Because tax advice to plaintiffs in lawsuits is often left until the settlement is concluded, many plaintiffs’attorneys direct that all monies are paid to them to obviate withholding and Forms 1099. While some defendants go along with this, it is an inappropriate practice.

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Comments

[Jack]

Great stuff from Wood as always. Too many defendants don't believe they have any obligation to report when the settlement is taxable, and others get the reporting wrong.