The Catholic University of America

OGC Legal Assistant and Records Manager

Reporting of Payments to Attorneys

26 CFR 1.6045-5; 26 CFR 1.6041-6; 71 Fed. Reg. 39548 (July 13, 2006)

This section of the tax regulations reflects changes made to the law by the Taxpayer Relief Act of 1997. The final regulations require those who make payments to attorneys aggregating $600 or more per calendar year in connection with legal services must file an information return for such payments. This requirement applies whether or not the services were performed for the payor, so for example, if the university was a defendant in a lawsuit, and was required to pay attorneys fees, this rule would apply. The filer must also provide to the attorney a written statement of the information required to be included on the return. Note that employers must report entire settlement amounts, including the amount paid to the attorneys, as income to the plaintiff, and also prepare a Form 1099 reporting the amount paid to the attorneys as income to the attorneys. Failure to do so may result in penalty payments to the IRS, as well as obligation to pay back withholding. See the Holland and Knight article below.

Information required. The information return required under paragraph (a)(1) of this section must include the following information:
(i) The name, address, and taxpayer identifying number (TIN) (as defined in section 7701(a)) of the payor;
(ii) The name, address, and TIN of the payee attorney;
(iii) The amount of the payment or payments (as defined in paragraph (d)(5) of this section); and
(iv) Any other information required by the Commissioner in forms, instructions or publications.

These regulations are effective to payments made in or after 2007.

The Records Manager provides information to the Director of Accounts Payable about payments to attorneys and plaintiffs with regard to settlement agreements.

Related Resources
Q and A on Tax Obligations Regarding Settlement Payments

See also Holland and Knight: The Supreme Court weighs in on Taxability of Contingent Fees in Employment Cases***

Federal Rules of Civil Procedure Related to Discovery and Electronically Stored Information

On April 12, 2006 (and effective Dec. 1, 2006), the below listed Federal Rules of Civil Procedure were amended to clarify the process of retrieving, saving and producing electronically stored information in anticipation of and during litigation. The rules impose an obligation to identify data that is potentially relevant and reasonably accessible, as well as data that may be relevant but not accessible. There is a duty to preserve what a party knows, or reasonably should know, is relevant in the action, is reasonably calculated to lead to the discovery of admissible evidence, is reasonably likely to be requested during discovery, and/or is the subject of a pending discovery request. This duty attaches in anticipation of litigation as well. The Legal Assistant and Records Manager is responsible for sending out the litigation hold notices. See below.

Litigation Tracking
For each lawsuit that is filed complete and record steps completed on the Litigation Checklist. OGC Legal Assistant is responsible for completing steps 1 through 8. The General Counsel will complete step 9. Further guidance on this process can be found in the memo on Litigation Hold Procedures.

Filing Requirements

Month Report Next Due
March USPTO  
March DC Education Licensure Commission 3-31-17
April MHEC
June SCHEV 6/30/16
December VSCC Dec. 

Virginia State Corporation Commission: Due December annually
Annual Corporation Requirements and Fee: The Commission mails an Annual Assessment Packet, containing a preprinted annual report form and a notice of annual registration fee assessment, to the registered agent of each active domestic and foreign stock and nonstock corporation at the registered office address on file with the Commission approximately 75 days before the annual report and registration fee payment are due. See the Virginia State Corporation Commission for business entity forms and fees.

OGC Required Action
File form with fee, due Dec. 30 annually.

Lawrence Morris is the registered agent for Virginia, phone 202-319-5142

Out of State Corporation Status Information for Maryland
Maryland Dept. of Assessments and Taxation ID # F00872408

All out of state corporations must file Form 1, the Personal Property Return, each year on April 16th, even if no personal property is held in the state. This return is filed on behalf of CUA by the Controller's Office.

In order to obtain a certificate of good standing in MD, one needs a "resident agent."
The CUA agent in Maryland is Craig Parker, phone 202.274.5604. If there are any questions about the RA process, call any of the following phone numbers: 410.767.1352 (or 4880 or 1006).
Copy of most recent filing (for CWP) can be found in Major Case file 07003.

See the Maryland registered agent web page for forms for changing agents or addresses.

District of Columbia

DC Educational Licensure Commission: Due March 31  annually

Summary of the law: DC Code 38-1309 Each licensed institution must submit an annual data survey form.

Annual Data Survey Form: Due March 31st  annually with HELC. 

Domestic Corporation Biennial Reports Due  April 1  and then every two years thereafter.

See Morgan Lewis Changes effective January 1, 2012 to DC NonProfit Corporation law

Summary of the Law: All DC domestic non-profit corporations must file, every other year on April  1st, a biennial report, which has address information, information on directors and officers, a statement on the nature of the business, changed information, if any, name of the registered agent, along with the $80 filing fee. Failure to file or pay this fee may voids the powers of the corporation.

OGC Required action: File the report and the fee biennially, next due April 1, 2017. 

(scroll down to Two Year Report for Domestic Non-Profit)

This is done for CUA, CUA Foundation, CUA Press, Farone Foundation and Rathskeller. CUA Press will not be filing this report in the future (2010).

§ 29-101.98. Report of domestic corporation [Formerly § 29-398]
(a) Each corporation incorporated before April 15, 1996, shall file with the Mayor on or before April 15, 1997, and on or before April 15th of each 2nd year thereafter, if there has been no change in material facts, a report setting forth:

(1) The name of the corporation, the address, including street and number, if any, of its registered office in the District of Columbia, and the name of its registered agent at such address;

(2) The address, including street and number, if any, of its principal office in the District, if such office is other than its registered office;

(3) The names and respective addresses, including street and number, if any, of its directors and officers;

(4) A brief statement of the character of the business in which the corporation is actually engaged;

(5) A statement of the aggregate number of shares which the corporation has authority to issue, itemized by classes, par value of shares, shares without par value, and series, if any, within a class; and

(6) A statement of the aggregate number of issued shares, itemized by classes, par value of shares, shares without par value and series, if any, within a class.

(a-1) Each corporation incorporated after April 14, 1996, shall file with the Mayor on or before April 15th of the year after its incorporation, and on or before April 15th of each 2nd year thereafter, if there has been no change in material facts, a report setting forth the information specified in subsection (a) of this section.

(b) Such 2-year report shall be made on forms prescribed and furnished by the Mayor, and the information therein contained shall be given as of the date of the execution of the report.

(c) It shall be executed by the corporation by its president, vice-president, secretary, assistant secretary, or treasurer.

§ 29-101.122. Effect of failure to pay 2-year report fee or to file annual report [Formerly § 29-399.23]

If any corporation incorporated or reincorporated under this chapter, or any foreign corporation having a certificate of authority issued under this chapter, shall fail or refuse to pay any 2-year report fee or fees payable under this chapter, or fail or refuse to file any 2-year report as required by this chapter then, in the case of a domestic corporation, the articles of incorporation shall be void and all powers conferred upon such corporation are declared inoperative, and, in the case of a foreign corporation, the certificate of authority shall be revoked and all powers conferred thereunder shall be inoperative.

CUA's registered agent in DC is Tom Roha, phone 202.833.0033.

Registered Agent for MD is Margaret O'Donnell 202-319-5142

Change of Registered Agent Form for DC.


Related Policies

Student Records
Electronic Communications
Information Assurance