No 1099, will this be lost in the shuffle?
MANY year old estate. Selling a property, lawsuit among siblings....
In order to allow the sale to proceed, all siblings agreed for the proceeds to be held in escrow. An attorney who was representing the property buyer agreed to hold funds (~250k) in escrow.
A few months later, a lawsuit was filed. The same attorney transferred the escrow funds into a court account. Court then began holding the proceeds.
Case settles, funds disbursed by the court (there is a specific name, prothonotary I believe). But no 1099 have been receded. This was oct 2023, now march 2024.
- Since the original payment by buyer went to atty, was that a reportable event? I think no. (Funds were in escrow at this point.)
- Since atty then transferred funds to the court, there was no breakdown of who got what- so also not reportable.
- When court divided up the funds pursuant to a court(judge) order, they just paid the funds.
My questions:
- At which step along the way was reporting required?
- Is there a mechanism in place where this (potential) 'miss' may be caught?
Thanks.
