Opinion 1907

Your inquiry concerns the ethical obligations of a lawyer in reporting the disbursement of settlement proceeds of a client to the IRS by filing IRS Form 1099.

The committee stated that it does not give legal advice and therefore does not offer comment on the accuracy of the lawyer’s interpretation of any tax reporting requirements. It is assumed that the lawyer has either correctly analyzed his substantive legal opinions or will seek the appropriate professional advice regarding the same. Subject to that caveat, the committee opines that RPC 1.6 does not prohibit the filing of Form 1099 reflecting moneys disbursed to clients by the lawyers, unless the client has requested that the lawyer keep the client’s identity confidential or has otherwise communicated to the lawyer that his/her identity or the terms of the settlement not be divulged, in which case the lawyer is prohibited from doing so by RPC 1.6. The lawyer’s attention is directed to WSBA Formal Opinion 194 for further guidance.

The lawyer’s attention is further directed to RPC 1.2(d), 8.4(b) and (c) and RLD 1.1. The lawyer is reminded that clients must be able to trust their lawyer to give legal advice that does not expose the client to additional liability.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.