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Jean   Murray

Do I Have to Give a 1099-MISC Form to My Attorney?

By January 15, 2012

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I received a question the other day about whether a business must provide a 1099-MISC form for an attorney. If the attorney is a corporation, does that make any difference? The short answer is, "No. It doesn't."

Form 1099-MISC is given to non-employees, like independent contractors and other businesses paid by your business. You must provide a 1099-MISC form to any of these individuals or businesses to whom you paid $600 or more in 2011.

The 1099-MISC instructions are specific about providing 1099-MISC forms for attorneys, but they distinguish between two different types of payments:

1. Fees: Any law firm or attorney to whom you paid $600 or more in fees during 2011 must be given a 1099-MISC form. Enter the total paid in Box 7. It doesn't matter if this attorney is a corporation; the 1099-MISC must be provided.

2. Gross Proceeds: If you paid an attorney $600 or more in "gross proceeds" in 2011, you must also provide a 1099-MISC (Box 14). Gross proceeds are an amount an attorney receives as part of work on a settlement or sale (of a business or business assets, for example) or in the case where an attorney accepts funds on behalf of a client and takes a fee from the payment.

When are 1099-MISC forms due for 2011?

You must provide 1099-MISC forms to payees no later than January 31, 2012, for 2011 taxes. Then, you must submit all 1099-MISC forms, along with a summary transmittal form 1096, to the IRS by February 28, 2012; 1099-MISC forms for gross proceeds must be submitted by February 15.

A 1099-MISC for gross proceeds must be submitted to the IRS by February 15.

More on How to Prepare and Submit Form 1099-MISC for 2011

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January 16, 2012 at 10:19 am
(1) Diva says:

Perfect information. However would like to provide an add on that the last date to file 1099 misc form electronically with the IRS is April 2nd 2012.

January 24, 2012 at 7:38 am
(2) Cathy McColgan says:

Hi Jean.
I was on to you once before for advice.
I live and work in Ireland and have performed work for my brothers accounting firm as a subcontractor.
Does he need to issue a 1099 to me? I have been paid over the $600 in 2011.
I was told he does not as I work and live outside the US and file taxes in Ireland, but wanted to double check this.

October 30, 2012 at 2:22 pm
(3) Reggie says:

Hi. My question is about payment to my attorney. She represented me in a custody hearing for my child. She was paid about $13,000. Does this fall under fees?

October 31, 2012 at 9:17 am
(4) biztaxlaw says:

Yes, but professional fees are not deductible unless they are business-related.

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