That is incorrect. When paying the settlement to the attorney, you must issue a 1099 to the attorney (reporting the gross proceeds in box 14), and issue a separate 1099 to the claimant, who is the beneficial owner of the award. See Instructions for Form 1099-MISC, page 2, and U.S. Code Sections 6041 (claimant) and 6045(f) (attorney).
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