Tax
May 5, 2022
Should lawyers fear IRS Forms 1099 for ‘gross proceeds?’
There are a few exceptions, but in general, you should assume that money sent to a lawyer or law firm will trigger a Form 1099.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
IRS Forms 1099 allow computer matching of Social Security numbers and dollar amounts paid and received, so IRS collection efforts are streamlined and automated. Failing to report a Form 1099 on your tax return (or at least to explain it) is likely to get you an IRS notice in the mail. It might ask questions, or just ask you to pay up for the amount you failed to report. Thus, if you receive a Form 1099, report it in some fashion, even if you are claiming that the mon...
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