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.
