A 6041A Reportable Payment Is
determined under the Treasury Regulations.
TITLE 26 - INTERNAL
REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART III - INFORMATION RETURNS
Subpart B - Information Concerning Transactions With Other Persons
Sec. 6041A. Returns regarding payments of remuneration for services and
direct sales
(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.
|
"Every person required to make a return
under subsection (a) or (b)" indicates two categories of person
that this particular IRC section applies to. The first is the "service-recipient".
Internal Revenue Code
Sec. 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.
|
The "service-recipient shall make a return,
according to the ... regulations
prescribed by the Secretary".
If an information return for a payment is not prescribed by regulation,
then that payment is NOT a "reportable
payment". If the "service-recipient"
is not required
to make a return regarding a payment, then that payment is NOT a "reportable payment".
No reportable payment: No backup withholding requirement.
"Every person required to make a return
under subsection (a) or (b)" indicates two classes or types of
person that this particular IRC section applies to. The second is
a person who sells consumer products, blah, blah.
Internal Revenue Code
Sec. 6041A. Returns regarding payments of remuneration for services and
direct sales
(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)... 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.
|
"Any person" blah, blah, "then such person shall make a return,
according to the ... regulations
prescribed by the Secretary." If an information
return for a payment is not prescribed
by regulation,
then that payment is NOT a "reportable
payment". No reportable
payment: No requirement to furnish an identifying number.
No reportable
payment: No backup withholding
requirement for failure to furnish a number.
Internal Revenue Code
Sec. 6041A. Returns regarding payments of remuneration for services and
direct sales
(f) Recipient to furnish name, address, and identification number;
inclusion on return
(1) Furnishing of information
Any person with respect to
whom a return or statement is required
under
this section to be made by another person shall furnish to such other
person his name, address, and identification
number at such time and in
such manner as the Secretary may prescribe by regulations.
(2) Inclusion on return
The person to whom an identification number is furnished under
paragraph (1) shall include such number on any return which such person
is required to file under this section and to which such identification
number relates.
|
"Any person" (payment recipient) "with respect to whom a return or statement
is required under this section ...
shall furnish ... his ... identification number ... in such manner as
the Secretary may prescribe
by regulations." If furnishing a payment
recipient's identification number is not "prescribed by regulations", then
the payment to the recipient is NOT a "reportable
payment".
Three times we have been
told by the IRC section above, that the regulations determine who's
number must be given to the person making payments.
|