by QSF Chef*
“How it Works”
When the settlements and fees are settled into a QSF, the defendant receives an immediate payoff/1099″**
An attorney for a firm that is a heavy promoter of Firmwide QSFs has made quite the gaffe, in an article promoting same on his firm’s website.
Wait, Whaaaaaaat?
What is a Payoff?
Source: Oxford Languages
What is a 1099?
A 1099 is an Internal Revenue Service (IRS) form that is used to report income received through sources other than employment. The IRS refers to 1099s as information forms. They serve as a record that reflects income given to someone by a person or organization that they are not formally employed by. Source: UpCounsel.com What is a 1099? Everything You Need To Know
A Better Choice of Words?
I love language and part of what I’ve done blogging over the years is to point out where perhaps there might have been a better choice of words.
Satire
This isn’t the first time I’ve questioned the use of the term “payoff” in connection with settlements. See my January 31, 2010 blog Northeastern Capital’s Amusing Financial Literacy Lesson
Note
*QSF Chef is a QSF blog nom de plume I’m trying out. Why? Because it rhymes!
** at time of publishing this appeared in an article credited to Sam Dolce-Powers