I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?
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jenaevans5
New Member

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

 
9 Replies
VolvoGirl
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

Did she send you a blank W9 or one with her info on it?  That seems odd.  If you need to give someone a 1099Misc you would give them the W9 asking for their info.
Hal_Al
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

If you are getting a settlement, she probably wants to issue you a 1099-misc.
Carl
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

" I hired for a project "
If you hired this lawyer to represent you in legal proceedings, and the end result was a monetary award that you won in the case, most likely the lawyer collected the award in it's entirety. Then send you the remainder after deducting their legal fees. That lawyer is required to send you a 1099-MISC, and to do that you are required to provide the information being requested by the lawyer, on the W-9. If this is the case and you don't provide the information, the IRS will fine you quite heavily. So get this done ASAP, as the lawyer has until Feb 15th to file that 1099-MISC with the IRS. You make him late, you pay the late penalties.
VolvoGirl
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

Actually the due date to file a 1099Misc with the IRS is now the same as to the person Jan 31.
Carl
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

Thanks for the update. Wasn't aware of that.
maglib
Level 10

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

I think OP paid $2k to hire an attorney for a projects.... so they are the ones who have to issue the 1099 to the attorney for their fees they paid to them, seems the attorney sent the w-9 info so OP can file the 1099 timely.
Carl
Level 15

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

If it's the Lawyer's SSN or EIN on the W-9, then you're spot on correct.
maglib
Level 10

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

If it's not, they are self employed and would have to issue the attorney a 1099 for fees paid to the attorney. There could be a payment to hire attorney and there could have been a settlement payment to the OP....  Not clear enough.
maglib
Level 10

I received a W9 from a lawyer I hired for a project and paid $2,000 in 2017. She has a single member LLC. Do I need to send her a 1099?

 https://www.irs.gov/pub/irs-pdf/i1099msc.pdf page 2-3 regarding payments to attorneys where you may have to issue them a 1099.

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). Gross proceeds paid to attorneys. Under section 6045(f), report in box 14 payments that: Are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example, as in a settlement agreement; Total $600 or more; and Are not reportable by you in box 7. Generally, you are not required to report the claimant's attorney's fees. For example, an insurance company pays a claimant's attorney $100,000 to settle a claim. The insurance company reports the payment as gross proceeds of $100,000 in box 14. However, the insurance company does not have a reporting requirement for the claimant's attorney's fees subsequently paid from these funds. 

These rules apply whether or not: The legal services are provided to the payer, The attorney is the exclusive payee (for example, the attorney's and claimant's names are on one check) and even if, Other information returns are required for some or all of a payment under section 6041A(a)(1). For example, a person who, in the course of a trade or business, pays $600 of taxable damages to a claimant by paying that amount to a claimant's attorney is required to: 

Furnish Form 1099-MISC with box 7 completed to the claimant under section 6041, and Furnish Form 1099-MISC with box 14 completed to the claimant's attorney under section 6045(f). For more examples and exceptions relating to payments to attorneys, see Regulations section 1.6045-5. 

However, these rules do not apply to wages paid to attorneys that are reportable on Form W-2 or to profits distributed by a partnership to its partners that are reportable on: 

Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc.; or 

Schedule K-1 (Form 1065-B), Partner's Share of Income (Loss) From an Electing Large Partnership. 


Payments to corporations for legal services. The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys' fees (in box 7) or gross proceeds (in box 14) as described earlier to corporations that provide legal services.

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