Client produced a pay stub which showed premium's were pd pretax, I know this settlement should be taxable inc. We asked the ins company and they are not reporting the settlement to the IRS or sending out any third party W-2 or 1099 Misc  to the client nor are the lawyers the client hired to represent her. The client feels uncomfortable not including the inc , should I include it anyway and just add it as other inc, is there something I am missing as to why they aren't reporting the settlement. Any help welcome.

Is it long-term disabilty benefits? Or is it a settlement for personal injury?

Long Term Disability Benefit. Client was out on personal injury and after two years the ins co said that she has to accept any job, she hired lawyer and they fought it and won a lump sum judgment.