Internal Revenue Code:Sec. 6041. Information at source

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Location in Internal Revenue Code

     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
        

Statute

    Sec. 6041. Information at source
 
    (a) Payments of $600 or more
      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), or $600 or
      more in any taxable 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, and the name and address of the
      recipient of such payment.
    (b) Collection of foreign items
      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.
    (c) Recipient to furnish name and address
      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.
    (d) Statements to be furnished to persons with respect to whom
        information is required
      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 -
        (1) the name, address, and phone number of the information
          contact of the person required to make such return, and
        (2) the aggregate amount of payments to the person required to
          be shown on the 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 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).
    (e) Section does not apply to certain tips
      This section shall not apply to tips with respect to which
      section 6053(a) (relating to reporting of tips) applies.
    (f) Section Does Not Apply to Certain Health Arrangements.--This 
      section shall not apply to any payment for medical care (as defined in 
      section 213(d)) made under--
        (1) a flexible spending arrangement (as defined in section 
          106(c)(2)), or
        (2) a health reimbursement arrangement which is treated as 
          employer-provided coverage under an accident or health plan for 
          purposes of section 106.
    (g) Nonqualified Deferred <<NOTE: Applicability.>> Compensation.--
      Subsection (a) shall apply to--
       (1) 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
       (2) any amount includible under section 409A and which is 
        not treated as wages under section 3401(a).

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 745; Pub. L. 87-834, Sec. 19(f),
    Oct. 16, 1962, 76 Stat. 1058; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-600, title
    V, Sec. 501(b), Nov. 6, 1978, 92 Stat. 2878; Pub. L. 97-34, title
    VII, Sec. 723(b)(1), Aug. 13, 1981, 95 Stat. 344; Pub. L. 97-248,
    title III, Sec. 309(b)(1), Sept. 3, 1982, 96 Stat. 595; Pub. L.
    98-369, div.  A, title VII, Sec. 722(h)(4)(B), July 18, 1984, 98
    Stat. 976; Pub. L. 99-514, title XV, Sec. 1501(c)(1), 1523(b)(2),
    Oct. 22, 1986, 100 Stat. 2736, 2748; Pub. L. 104-168, title XII,
    Sec. 1201(a)(1), July 30, 1996, 110 Stat. 1469.)
 

Miscellaneous

                                 AMENDMENTS
    2004 - Pub. L. 108-357, Sec. 885(b)(3).  Section 6041 
   (relating to information at source) is amended by adding at the 
    end the following new subsection: 
    "(g) Nonqualified Deferred Compensation...".

      2003 - Pub. L. 108-173, Sec. 1203, added new subsection (f).
      Effective Date.--The amendment made by this section shall
      apply to payments made after December 31, 2002

      2002 - Pub. L. 107-147, Sec. 401 provided for the
      ALLOWANCE OF ELECTRONIC 1099'S, with the following provision:
        Any person required to furnish a statement under any section of 
      subpart B of part III of subchapter A of chapter 61 of the Internal 
      Revenue Code of 1986 for any taxable year ending after the date of the 
      enactment of this Act, may electronically furnish such statement 
      (without regard to any first class mailing requirement) to any recipient 
      who has consented to the electronic provision of the statement in a 
      manner similar to the one permitted under regulations issued under 
      section 6051 of such Code or in such other manner as provided by the 
      Secretary.

      1996 - Subsec. (d)(1). Pub. L. 104-168 substituted ''name,
    address, and phone number of the information contact'' for ''name
    and address''.
      1986 - Subsec. (a). Pub. L. 99-514, Sec. 1523(b)(2), substituted
    ''6049(a), or 6050N(a)'' for ''or 6049(a)''.
      Subsec. (d). Pub. L. 99-514, Sec. 1501(c)(1), in amending subsec.
    (d) generally, substituted ''information is required'' for
    ''information is furnished'' in heading and, in text, substituted
    references to persons required to make returns for former
    references to persons making returns.
      1984 - Subsec. (a). Pub. L. 98-369 inserted ''6047(e),''.
      1982 - Subsec. (a). Pub. L. 97-248 substituted ''6049(a)'' for
    ''6049(a)(1)'', and ''or 6045'' for ''6045, 6049(a)(2), or
    6049(a)(3)''.
      1981 - Subsecs. (d), (e). Pub. L. 97-34 added subsec. (d) and
    redesignated former subsec. (d) as (e).
      1978 - Subsecs. (c), (d). Pub. L. 95-600 added subsec. (d) and
    redesignated subsec. (d) as (c).
      1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out ''or his
    delegate'' after ''Secretary''.
      1962 - Subsec. (a). Pub. L. 87-834, Sec. 19(f)(1), substituted
    ''(other than payments to which section 6042(a)(1), 6044(a)(1), or
    6049(a)(1) applies, and other than payments with respect to which a
    statement is required under the authority of section 6042(a)(2),
    6044(a)(2), 6045, 6049(a)(2), or 6049(a)(3))'' for ''other than
    payments described in section 6042(1) or section 6045)''.
      Subsec. (c). Pub. L. 87-834, Sec. 19(f)(2), repealed subsec. (c)
    which related to returns of payments of interest by corporations.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 1201(b) of Pub. L. 104-168 provided that: ''The
    amendments made by subsection (a) (amending this section and
    sections 6041A, 6042, 6044, 6045, 6049, 6050B, 6050H to 6050K, and
    6050N of this title) shall apply to statements required to be
    furnished after December 31, 1996 (determined without regard to any
    extension).''
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 1501(c)(1) of Pub. L. 99-514 applicable to
    returns the due date for which (determined without regard to
    extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L.
    99-514, set out as an Effective Date note under section 6721 of
    this title.
      Amendment by section 1523(b)(2) of Pub. L. 99-514 applicable to
    payments made after Dec. 31, 1986, see section 1523(d) of Pub. L.
    99-514, set out as an Effective Date note under section 6050N of
    this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to payments or
    distributions after Dec. 31, 1984, unless the payor elects to have
    such amendment apply to payments or distributions before Jan. 1,
    1985, see section 722(h)(5)(B) of Pub. L. 98-369, set out as a note
    under section 643 of this title.
                      EFFECTIVE DATE OF 1982 AMENDMENT
      Amendment by Pub. L. 97-248 applicable to amounts paid (or
    treated as paid) after Dec. 31, 1982, see section 309(c) of Pub. L.
    97-248, set out as a note under section 6049 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to returns and statements
    required to be furnished after Dec. 31, 1981, see section 723(c) of
    Pub. L. 97-34, set out as a note under section 6652 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Amendment by Pub. L. 95-600 applicable to payments made after
    Dec. 31, 1978, see section 501(c) of Pub. L. 95-600, set out as a
    note under section 6001 of this title.
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Amendment by Pub. L. 87-834 applicable to payments of dividends
    and interest made on or after Jan. 1, 1963, and to payments of
    amounts described in section 6044(b) of this title made on or after
    Jan. 1, 1963. with respect to patronage occurring on or after the
    first day of the first taxable year of the cooperative beginning on
    or after Jan. 1, 1963, see section 19(h) of Pub. L. 87-834, set out
    as a note under section 6042 of this title.
      EMPLOYER'S DUTIES IN CONNECTION WITH RECORDING AND REPORTING OF
                                    TIPS
      Pub. L. 94-455, title XXI, Sec. 2211, Oct. 4, 1976, 90 Stat.
    1905, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
    Stat. 2095, provided that:
      ''(a) Suspension of Rulings. - Until January 1, 1979, the law
    with respect to the duty of an employer under section 6041(a) of
    the Internal Revenue Code of 1986 (formerly I.R.C. 1954) to report
    charge account tips of employees to the Internal Revenue Service
    (other than charge account tips included in statements furnished to
    the employer under section 6053(a) of such Code) shall be
    administered -
        ''(1) without regard to Revenue Rulings 75-400 and 76-231, and
        ''(2) in accordance with the manner in which such law was
      administered before the issuance of such rulings.
      ''(b) Effective Date. - This section shall take effect on January
    1, 1976.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 3406, 3509, 6045, 6051,
    6724 of this title; title 25 section 2719.