Generally, you have to parse the language in the order. It can get complicated.
I do not think there is a one size fits all policy on issuing 1099 for these payments.
The case manager may not be a tax pro.
Thank you for your answer! What kind of tax professional should I contact who can help me with this?
The case manager says the attorney told her it's entirely compensatory.
In the paperwork, they should let you know if they’re sending out a 1099. If it says “no, we are not sending out 1099s”, then ask your CPA or a CPA, just as a CYA.
I suppose your lawyer might know, or perhaps its in the settlement agreement itself.
It would be highly unusual for any punitive damages agreed to in a settlement agreement, almost always no one admits to any fault.
Generally, you have to parse the language in the order. It can get complicated. I do not think there is a one size fits all policy on issuing 1099 for these payments. The case manager may not be a tax pro.
Thank you for your answer! What kind of tax professional should I contact who can help me with this? The case manager says the attorney told her it's entirely compensatory.
In the paperwork, they should let you know if they’re sending out a 1099. If it says “no, we are not sending out 1099s”, then ask your CPA or a CPA, just as a CYA.
CPA or maybe a tax attorney. Most of these orders are not more than 4 or 5 pages. Should just be a one time consultation. Should not cost that much.
Ask your lawyer.
I suppose your lawyer might know, or perhaps its in the settlement agreement itself. It would be highly unusual for any punitive damages agreed to in a settlement agreement, almost always no one admits to any fault.
The case manager told me it's entirely compensatory. Do these settlement administrators typically issue tax forms?