REPORTING OF CERTAIN PAYMENTS MADE TO ATTORNEYS.

SEC. 1021. REPORTING OF CERTAIN PAYMENTS MADE TO ATTORNEYS. (a) In General.—Section 6045 (relating to returns of brokers) is amended by adding at the end the following new subsection: “(f) Return Required in the Case of Payments to Attorneys.— “(1) In general.—Any person engaged in a trade or business and making a payment (in the course of such trade or business) to which this subsection applies shall file a return under subsection (a) and a statement under subsection (b) with respect to such payment. “(2) Application of subsection.— “(A) In general.—This subsection shall apply to any payment to an attorney in connection with legal services (whether or not such services are performed for the payor). “(B) Exception.—This subsection shall not apply to the portion of any payment which is required to be reported 111 STAT. 923under section 6041(a) (or would be so required but for the dollar limitation contained therein) or section 6051.”. (b) Reporting of Attorneys’ Fees Payable to Corporations.—The regulations providing an exception under section 6041 of the Internal Revenue Code of 1986 for payments made to corporations shall not apply to payments of attorneys’ fees. (c) Effective Date.—The amendment made by this section shall apply to payments made after December 31, 1997.