Beginning in calendar year 1998, the Internal Revenue Service (IRS) required workers
compensation claims paid to an attorney, or the recipient and the attorney jointly, be
reported on form 1099. Expenditure subobject code 5241 was established to report these
payments. The IRS now requires all settlement payments made to the attorney or to the
recipient and attorney jointly be reported as gross proceeds on form 1099. In order to
report these payments, claims currently being paid were reviewed to detect the need for
new expenditure subobject codes. New expenditure subobject codes currently required are
being established under the category of "Claims" as follows:
These revisions will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/ppm01001.htm. If a new expenditure sub-object code is needed in another category in order to capture 1099 reportable gross proceeds payments to attorneys, please contact Pam Karns at (785) 296-2660. DB:pk:mp
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