Last Updated 10/27/2022
The Settlement Program has sent all funds that have remained uncashed or unclaimed to the states in which the claimants to whom these funds belong resided, based on our records. As each State has different rules and procedures regarding the disposition of unclaimed property, we cannot advise when these funds will be available. Please review your State’s unclaimed property division website for more information should you have any questions.
IRS FORMS 1099 RELATED TO NEW CLASS AND OLD CLASS PAYMENTS
A final round of IRS Forms 1099 will be issued in January 2023 for initial distribution payments made in calendar year 2022.
IRS Forms 1099 have been issued in the month of January relating to any initial distribution of proceeds paid the year prior since distributions began in 2018. Forms 1099 were issued to claimants whether the payment went to the claimant directly or were paid to an attorney on a claimant’s behalf for the portion of the proceeds related to the Old Class (HESI-Transocean Assigned Claims Combined Settlement Fund) and/or the New Class (HESI-Transocean Punitive Damages Combined Settlements Fund). Forms 1099 are issued regardless of whether the payment was cashed prior to the end of calendar year in which it was initially distributed. NOTE: If you received payments from BOTH the Old Class (HESI/Transocean Assigned Claims Combined Settlements Fund) and the New Class (HESI/Transocean Punitive Damages Combined Settlements Fund), you received two separate IRS Forms 1099.
If you received an initial payment(s) of $600 or more for New Class punitive damages claims during a calendar year, the full amount of those punitive damages payments will be included on your IRS Form 1099. All New Class awards, regardless of claim type, are reportable as all proceeds of the New Class are for punitive damages. Please consult your tax adviser if you have questions about the tax consequences of receiving payments.
If you received initial distribution payment(s) of $600 or more for Old Class assigned claims payments for reportable claim types during a calendar year, you were sent an IRS Form 1099 reflecting the total of those reportable awards. Wetlands Real Property, Coastal Real Property, Oyster Leaseholder, Real Property Sales, and Vessel Physical Damage are not automatically included in the reportable amount per the IRS requirements – you must consult with your tax adviser to determine if these payments are taxable.
If you have a question or concern about your Form 1099, please review the information on the check stub that accompanied your settlement check, or contact the Settlements Program via email, Questions@GulfSpillPunitiveDamagesSettlement.com, or phone, 1-877-940-7792.
Please note that the Settlements Program can only answer general questions regarding Forms 1099, and it cannot provide you with tax advice. You should consult with your own tax advisor to determine the impact of any payments you received from the Settlement Program on your individual tax situation.
Updating the Name on an IRS Form 1099:
If an amended Form 1099 is required, you can submit a request along with the appropriate Dissolved or Sold Business Certification or Legal Representative Certification for a Deceased, Minor, or Incompetent party and supporting documentation after the Form 1099 has been received. The forms and instructions on the documentation required are available on the Administrative Forms tab of this website. Please note, the Settlements Program is only able to issue a Form 1099 to a single recipient for each claim, so in instances where proceeds were split after distribution was made, the parties must choose one recipient for the Form 1099.
IRS Forms 1099 for Payments to an Attorney on Behalf of a Claimant:
Please note, firms received a Form 1099 for proceeds using Box 10 (formerly Box 13); firms do not need to issue an additional Form 1099 to their clients as the Settlements Program is doing so.
A Form 1099 will be issued to the claimant for the year in which the funds were paid to the firm even if the attorney may not have forwarded the proceeds to the claimant in that same calendar year.
- Old Class Claimant Forms 1099: The HESI/Transocean Settlements Program issued one Form 1099 for all Old Class payments made in 2020 to a particular claimant, regardless of the number of reportable underlying claims, in the name of the payee listed in the Old Class omnibus spreadsheet provided to firms on December 15, 2018, unless the firm has officially updated the claimant name with the Settlements Program in the interim, and that Form 1099 was mailed directly to your client at the address the Settlements Program has on file.
- New Class Claimant Forms 1099: The HESI/Transocean Settlements Program issued one Form 1099 for all New Class payments made in 2020 to a particular claimant, regardless of the number of reportable underlying claims, in the name of the payee listed in the New Class A omnibus spreadsheet provided to firms on September 6, 2019, and in the New Class B omnibus spreadsheet provided to firms on July 13, 2020, unless the firm has officially updated the claimant name with the Settlements Program in the interim, and that Form 1099 was mailed directly to your client at the address the Settlements Program has on file.
- Amended Forms 1099: If an amended Form 1099 is required, you or the claimant can submit a request along with the appropriate Dissolved or Sold Business Certification or Legal Representative Certification in the event the claimant is deceased, a minor, or incapacitated, and supporting documentation after the Form 1099 has been received by the claimant. The Settlements Program is only able to issue a Form 1099 to a single recipient.