Central District Consumer Bankruptcy Attorney's Association

It's been a while since I had that situation, but when I checked last the answer was it deepended on the nature of the settlement proceeds and type of client (individual or business entity). If it is taxable to the client yes. If not, no. I would check with your own accountant and/or read the IRS instructions for issuance of 1099's to be safe. 1099's from lawyers are supposed to be issued by January 31 each year.
Mark Jessee
>
> When we get a 1099 for settlement proceeds, are we supposed to then issue a 1099 to the client? If so, what's the deadline to do that? Thanks.
> Cameron
>
> Sent from my iPhone
>
> On Feb 2, 2012, at 9:42 PM, "Mark Jessee" wrote:
>
> > Heads up for those of you that ever received money for yourselves or in trust for a client from Ally Financial, Inc fka GMAC, Inc. It had a big screw up in its 1099 issuance procedures this year. I received a 1099 for 2011 from Ally for a settlement distribution it made though me for a client in 2007. The figure was 10 times what Ally, then GMAC, paid in 2007. (It did correctly issue a 1099 back in 2007.) I promptly called Ally after double checking my records yesterday trying to make sense of the 1099. Today its rep called back to explain I had uncovered the big snafu that records from past years were merged by its new vendor and generated erroneous 1099's for 2011. I am told Ally is working to correct all the 1099's sent out, but be on guard and thoroughly review any 1099 forms received from Ally Financial, Inc to make sure it accurately reflects money's paid to you. None of us want to pay taxes on money we never received...!
> >
> > Mark Jessee
> >
> >
>

The post was migrated from Yahoo.

When we get a 1099 for settlement proceeds, are we supposed to then issue a 1099 to the client? If so, what's the deadline to do that? Thanks.
Cameron
Sent from my iPhone
On Feb 2, 2012, at 9:42 PM, "Mark Jessee" wrote:
> Heads up for those of you that ever received money for yourselves or in trust for a client from Ally Financial, Inc fka GMAC, Inc. It had a big screw up in its 1099 issuance procedures this year. I received a 1099 for 2011 from Ally for a settlement distribution it made though me for a client in 2007. The figure was 10 times what Ally, then GMAC, paid in 2007. (It did correctly issue a 1099 back in 2007.) I promptly called Ally after double checking my records yesterday trying to make sense of the 1099. Today its rep called back to explain I had uncovered the big snafu that records from past years were merged by its new vendor and generated erroneous 1099's for 2011. I am told Ally is working to correct all the 1099's sent out, but be on guard and thoroughly review any 1099 forms received from Ally Financial, Inc to make sure it accurately reflects money's paid to you. None of us want to pay taxes on money we never received...!
>
> Mark Jessee
>
>
When we get a 1099 for settlement proceeds, are we supposed to then issue a 1099 to the client? If so, what's the deadline to do that? Thanks. CameronSent from my iPhoneOn Feb 2, 2012, at 9:42 PM, "Mark Jessee" <mjessee@jesseelaw.com> wrote:

Heads up for those of you that ever received money for yourselves or in trust for a client from Ally Financial, Inc fka GMAC, Inc. It had a big screw up in its 1099 issuance procedures this year. I received a 1099 for 2011 from Ally for a settlement distribution it made though me for a client in 2007. The figure was 10 times what Ally, then GMAC, paid in 2007. (It did correctly issue a 1099 back in 2007.) I promptly called Ally after double checking my records yesterday trying to make sense of the 1099. Today its rep called back to explain I had uncovered the big snafu that records from past years were merged by its new vendor and generated erroneous 1099's for 2011. I am told Ally is working to correct all the 1099's sent out, but be on guard and thoroughly review any 1099 forms received from Ally Financial, Inc to make sure it accurately reflects money's paid to you. None of us want to pay taxes on money we never received...!
Mark Jessee

The post was migrated from Yahoo.

Heads up for those of you that ever received money for yourselves or in trust for a client from Ally Financial, Inc fka GMAC, Inc. It had a big screw up in its 1099 issuance procedures this year. I received a 1099 for 2011 from Ally for a settlement distribution it made though me for a client in 2007. The figure was 10 times what Ally, then GMAC, paid in 2007. (It did correctly issue a 1099 back in 2007.) I promptly called Ally after double checking my records yesterday trying to make sense of the 1099. Today its rep called back to explain I had uncovered the big snafu that records from past years were merged by its new vendor and generated erroneous 1099's for 2011. I am told Ally is working to correct all the 1099's sent out, but be on guard and thoroughly review any 1099 forms received from Ally Financial, Inc to make sure it accurately reflects money's paid to you. None of us want to pay taxes on money we never received...!
Mark Jessee

The post was migrated from Yahoo.