Are payments made in the course of a subrogation payment reported on form 1099?


Q. (cont.) For example, if my insurance company pays another insurance company to reimburse them for a claim made by their insured, do I need to issue a 1099 to the other insurance company?        

A. We spoke with IRS Information Specialist Mrs. Lamb (#1001306657), who said yes, this subrogation payment would be reportable to the other insurance company in box 3 of the 1099 form, provided the other company is not a corporation. She noted, however, that most insurance companies are required to be incorporated, and if that is the case here, then no 1099 is needed.       

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