26 USC 6041A - Returns regarding payments of remuneration for services and direct sales

U.S Code last checked for updates: Oct 17, 2024

§ 6041A.

Returns regarding payments of remuneration for services and direct sales

(a)

Returns regarding remuneration for services

If—

(1)

any service-recipient engaged in a trade or business pays in the course of such trade or business during any calendar year remuneration to any person for services performed by such person, and

(2)

the aggregate of such remuneration paid to such person during such calendar year is $600 or more,

then the service-recipient shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the recipient of such payments. For purposes of the preceding sentence, the term “service-recipient” means the person for whom the service is performed.

(b)

Direct sales of $5,000 or more

(1)

In general

If—

(A)

any person engaged in a trade or business in the course of such trade or business during any calendar year sells consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis which the Secretary prescribes by regulations, for resale (by the buyer or any other person) in the home or otherwise than in a permanent retail establishment, and

(B)

the aggregate amount of the sales to such buyer during such calendar year is $5,000 or more,

then such person shall make a return, according to the forms or regulations prescribed by the Secretary, setting forth the name and address of the buyer to whom such sales are made.

(2)

Definitions

For purposes of paragraph (1)—

(A)

Buy-sell basis

(B)

Deposit-commission basis

(c)

Certain services not included

(d)

Applications to governmental units

(1)

Treated as persons

(2)

Special rules

In the case of any payment by a governmental entity or any agency or instrumentality thereof—

(A)

subsection (a) shall be applied without regard to the trade or business requirement contained therein, and

(B)

any return under this section shall be made by the officer or employee having control of the payment or appropriately designated for the purpose of making such return.

(3)

Payments to corporations by Federal executive agencies

(A)

In general

(B)

Exception

Subparagraph (A) shall not apply to—

(i)

services under contracts described in section 6050M(e)(3) with respect to which the requirements of section 6050M(e)(2) are met, and

(ii)

such other services as the Secretary may specify in regulations prescribed after the date of the enactment of this paragraph.

(e)

Statements to be furnished to persons with respect to whom information is required to be furnished

Every person required to make a return under subsection (a) or (b) shall furnish to each person whose name is required to be set forth in such return a written statement showing—

(1)

the name, address, and phone number of the information contact of the person required to make such return, and

(2)

in the case of subsection (a), the aggregate amount of payments to the person required to be shown on such return.

The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.

(f)

Recipient to furnish name, address, and identification number; inclusion on return

(1)

Furnishing of information

(2)

Inclusion on return

(Added Pub. L. 97–248, title III, § 312(a),

cite as: 26 USC 6041A