If I received a 1099 MISC with my name and my lawyers name for 14,500 in box 14, all other empty but did not receive any funds do I file it or not.

[charlesjsavage]

I received a 1099 misc with my name and the lawyers name from a lawsuit with $14,500 shown in box 14 and I have not received anything in monetary compensation. The lawyer also said that when he distribute the funds (less his fee) this year he will issue me a 1099 again. I did not nor was the suit completely settled to my knowledge so no distributions of funds came to me. Should I just pass this to the lawyer for him to file and not me or file it? If I file it essentially I am paying taxes of something I did not receive and if the lawyer gets his percentage do I pay on the hole amount collected. Thank you

[KrisD · Accepted solution]

Since his name is also on the form, he probably also received a copy. Do not report, but keep your copy of this 1099  misc with your tax file, as well as written correspondence from the attorney regarding this case. If you have not received any funds, and the attorney is also listed on the form, it is more than possible that the entire settlement amount will be issued to “Attorney in trust for Client.” This means your lawyer will get the funds, and make payment to you. At that time you should receive a 1099-Misc from the attorney and you will report that form and pay the tax on that amount. 

http://www.woodllp.com/Publications/Articles/pdf/IRS_Form_1099_Ten.pdf

http://blog.sfbar.org/2015/04/02/to-1099-or-not-to-1099-proper-reporting-of-client-settlements/