Is it really necessary for a Plaintiff to give out their Social Security number to opposing counsel when settlement is unofficially agreed, ...

Question

Is it really necessary for a Plaintiff to give out their Social Security number to opposing counsel when settlement is unofficially agreed, if opposing counsel requested it?

Do they really have to draft a W-2 Form/IRS paperwork, if the case had nothing to do with employment losses of any kind?

Answer

It depends on the case. There are a lot of settlement payments other than employment cases that still are reported for tax purposes, usually on a 1099-MISC instead of a W-2, but you still need to give the SSN.