§6041 — Information at source
14 cases·1 followed·1 distinguished·12 cited—7% support
Statute Text — 26 U.S.C. §6041
All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042(a)(1), 6044(a)(1), 6047(e), 6049(a), or 6050N(a) applies, and other than payments with respect to which a statement is required under the authority of section 6042(a)(2), 6044(a)(2), or 6045), of $2,000 or more in any calendar year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income (including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips and a separate accounting of any amount of qualified overtime compensation (as defined in section 225(c))), and the name and address of the recipient of such payment.
In the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest upon the bonds of and dividends from foreign corporations by any person undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange, such person shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the amount paid and the name and address of the recipient of each such payment.
When necessary to make effective the provisions of this section, the name and address of the recipient of income shall be furnished upon demand of the person paying the income.
Every person required to make a return under subsection (a) shall furnish to each person with respect to whom such a return is required a written statement showing—
the name, address, and phone number of the information contact of the person required to make such return,
the aggregate amount of payments to the person required to be shown on the return,
in the case of compensation to non-employees, the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips, and
the portion of payments that are qualified overtime compensation (as defined in section 225(c)).
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 required to be made. To the extent provided in regulations prescribed by the Secretary, this subsection shall also apply to persons required to make returns under subsection (b).
This section shall not apply to tips with respect to which section 6053(a) (relating to reporting of tips) applies.
This section shall not apply to any payment for medical care (as defined in section 213(d)) made under—
a flexible spending arrangement (as defined in section 106(c)(2)), or
a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106.
Subsection (a) shall apply to—
any deferrals for the year under a nonqualified deferred compensation plan (within the meaning of section 409A(d)), whether or not paid, except that this paragraph shall not apply to deferrals which are required to be reported under section 6051(a)(13) (without regard to any de minimis exception), and
any amount includible under section 409A and which is not treated as wages under section 3401(a).
In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.6041-1 Return of information as to payments of $600 or more
- Treas. Reg. §Treas. Reg. §1.6041-1(a) General rule—(1) Information returns required—(i) Payments required to be reported.
- Treas. Reg. §Treas. Reg. §1.6041-1(b) Persons engaged in trade or business—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-1(c) Fixed or determinable income.
- Treas. Reg. §Treas. Reg. §1.6041-1(d) Payments specifically included—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-1(e) Payment made on behalf of another person—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-1(f) Amount to be reported when fees, expenses or commissions are deducted—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-1(g) Payment made in medium other than cash.
- Treas. Reg. §Treas. Reg. §1.6041-1(h) When payment deemed made.
- Treas. Reg. §Treas. Reg. §1.6041-1(i) Payments made by the United States or a State.
- Treas. Reg. §Treas. Reg. §1.6041-1(j) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.6041-1(v) Unless the payment is payment with respect to which a return is required by § 1.
- Treas. Reg. §Treas. Reg. §1.6041-10 Return of information as to payments of winnings from bingo, keno, and slot machine play
- Treas. Reg. §Treas. Reg. §1.6041-10(a) In general.
- Treas. Reg. §Treas. Reg. §1.6041-10(b) Definitions—(1) Reportable gambling winnings.
- Treas. Reg. §Treas. Reg. §1.6041-10(c) Prescribed form; time and place for filing the return.
- Treas. Reg. §Treas. Reg. §1.6041-10(d) Information included on the return—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-10(e) Identification.
- Treas. Reg. §Treas. Reg. §1.6041-10(f) Furnishing a statement to the payee.
- Treas. Reg. §Treas. Reg. §1.6041-10(g) Aggregate reporting of bingo, keno, and slot machine winnings—(1) In general.
- Treas. Reg. §Treas. Reg. §1.6041-10(h) Payments to foreign persons.
- Treas. Reg. §Treas. Reg. §1.6041-10(i) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.6041-10(j) Cross-references for certain gambling winnings.
- Treas. Reg. §Treas. Reg. §1.6041-10(v) §1.6041-10(v)
- Treas. Reg. §Treas. Reg. §1.6041-2 Return of information as to payments to employees
14 Citing Cases
6041 (information returns required for payments of $600 or more); sec. 1.6041-1, Income Tax Regs. We note that Miller testified that he was aware of regulations that provided that the route distributors should be categorized as employees. We note that Miller testified that he knew that the conversion of the workers from employees to independen
6041 and the regulations thereunder require every person engaged in a trade or business to prepare and file Form 1096, Annual Summary and Transmittal ofU.S. Information Returns, or Form 1099-MISC for each person to whom it pays, in the course ofits trade or business, services compensation ofat least $600 during the taxable year, unless it issu
(a "payment" is made for purposes of section 6041 information returns when an.amount is made available to a person "so that it may be drawn.at any time, and its receipt brought within his own control and disposition..").
(cid:127)Pursuant to two Forms 2504-AD, Excise or Employment Tax- Offer of Agreement to Assessment and Collection of Additional Ta x -'and-Of-fer of Acceptance of Overassessment, respondent assessed backup withholding taxes under section 3406 and additions to tax for failure to file information returns required by section 6041A(a) as follows : Additions to Tax Year Backup Withholding Sec .
Section 6721(a) deals with “Failure to file correct information returns”, which includes Forms 1096 and 1099 (see section 6041A), and section 6721(a)(2)(A) describes a failure to file subject to penalty as “any failure to file an information return with the Secretary on or before the required filing date.” Section 6721(e) prescribes a “Penalty in case of intentional disregard”.
The courts held that there were no payments, within the meaning of section 6041 and the regulations thereunder, made by the corporations to the dancers.
The informational return which petitioner’s wife received in this case was required by section 6041 and the accompanying regulations.
6041 (information returns required for payments of $600 or more); sec. 1.6041-1, Income Tax Regs. - 25 - workers, route distributors,11 and outside sales workers as independent contractors.12 B. Conclusion In Erickson v. Commissioner, 172 Bankr. 900, 913 (Bankr. D. Minn. 1994), the court noted: The essence of the safe harbor provision is to g
For purposes of paragraph (a)(1) of this section, the service provider is deemed to have included the amount as compensation in gross income if the person for whom the services were performed satisfies in a timely manner all requirements of section 6041 or section 6041A, and the regulations - 16 - thereunder, with respect to that amount of compensation.
For purposes of paragraph (a)(1) of this section, the service provider is deemed to have included the amount as compensation in gross income if the person for whom the services were performed satisfies in a timely manner all requirements of section 6041 or section 6041A, and the regulations thereunder, with respect to that amount of compensation.