Payments to attorneys. The term “attorney” includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of your trade or business are reportable in box 7 of Form 1099-MISC, under section 6041A(a)(1).
In short, a retainer is a liability that must either be repaid or earned. ... In other words – from a tax perspective – there's a good chance the law firm must pay taxes on the client retainer when they receive payment.
I would leave the 1099 as is; you have not received a refund yet (and definitely not in 2019)
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