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    LostnFound44's Avatar
    LostnFound44 Posts: 1, Reputation: 1
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    #1

    Feb 20, 2006, 08:27 AM
    1099-MISC to attorney for title insurance
    At a closing an attorney represented the buyer of the property. At the closing the lending institution issued a treasurers check payable to "Attorney - Agent" for lender's title insurance. The invoice for the title insurance is from a third party title insurance company.

    Is this transaction reportable on a 1099-MISC to the attorney?

    Can you provide reference to the regulations or guidance that show that this is or is not required reporting?

    Thank you very much.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 20, 2006, 08:31 AM
    It depends if the lawyer is incorporated or not. If he is incorporated, then the Form 1099-MISC is not needed.

    If he is not incorporated, but that check is the only check he has evern gotten from the title company and the amount is under $600, then Form 1099-MISC is not required.

    If the check is part of a number of payments which total over $600, then the Form 1099-MISC is required.

    I cannot cite the IRC, but some research on www.irs.gov should get you the needed citation.
    pok's Avatar
    pok Posts: 6, Reputation: 1
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    #3

    Feb 20, 2006, 11:52 AM
    Additional information:

    Lawyer payment is a special case. Even the lawyer is incorporated, the amount needs to be reported on 1099-misc. See reportable amount to corporations in IRS 1099-misc instructions.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Feb 20, 2006, 06:51 PM
    I cannot confirm Pok's issue about requiring a 1099 for an incorporated lawyer, but I see no reason to doubt his word.
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