Are defendants who pay a settlement for a matter that's compensatory required to file a 1099 with the IRS and the plaintiff? I looked around a bit and read these articles as well as section 104:
(commercial links removed)
The law and articles above are clear on some types of claims as far as what's taxable, but I'm not found any clarity on whether non-physical personal injury compensation must be 1099'd. Internal Revenue Code section 104 only addresses physical injury.
(commercial links removed)
The law and articles above are clear on some types of claims as far as what's taxable, but I'm not found any clarity on whether non-physical personal injury compensation must be 1099'd. Internal Revenue Code section 104 only addresses physical injury.