Are attorney payments reportable to a corporation on a 1099-MISC form?

Yes.  Attorney fees of $600 or more paid in the course of your trade or business to a corporation should be reported on a 1099-MISC form, Box 7, under section 6041A(a)(1).  Payments to corporations are typically not reportable, however, attorney payments are one of the exceptions to this general rule.  The term corporation includes C corporations, S corporations and LLCs that have elected C or S corporation tax status with the IRS. The term “attorney” includes a law firm or other provider of legal services.

Gross proceeds paid to an attorney that is a corporation are also reportable in Box 14 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.

For additional information see the 2019 Instructions for Form 1099-MISC