I cannot find any guidance in the 1099 instructions on the IRS website regarding how to deal with reporting for garnishments, so I hope you can help me. We received a non-periodic garnishment to withhold funds from a vendor (defendant). We have to remit payment to the plaintiff's attorney. For 1099-MISC reporting, do we issue a 1099 to the Plaintiff, the Plaintiff's attorney, or nobody?

“We have to remit payment to the plaintiff's attorney. For 1099-MISC reporting, do we issue a 1099 to the Plaintiff, the Plaintiff's attorney, or nobody?”--> You have an issue with garnishment on 1099 contractor; your responsibility is to withhold based on the garnishment instructions until you receive a written release or stay. Generally, I guess the 1099 still goes to the vendor, who is the""beneficial owner" of the income.