Internal Revenue Code:Sec. 6041A. Returns regarding payments of remuneration for services and direct sales

From TaxAlmanac

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. 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
          A transaction is on a buy-sell basis if the buyer performing
        the services is entitled to retain part or all of the
        difference between the price at which the buyer purchases the
        product and the price at which the buyer sells the product as
        part or all of the buyer's remuneration for the services, and
        (B) Deposit-commission basis
          A transaction is on a deposit-commission basis if the buyer
        performing the services is entitled to retain part or all of a
        purchase deposit paid by the consumer in connection with the
        transaction as part or all of the buyer's remuneration for the
        services.
    (c) Certain services not included
      No return shall be required under subsection (a) or (b) if a
    statement with respect to the services is required to be furnished
    under section 6051, 6052, or 6053.
    (d) Applications to governmental units
      (1) Treated as persons
        The term ''person'' includes any governmental unit (and any
      agency or instrumentality thereof).
      (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
          Notwithstanding any regulation prescribed by the Secretary
        before the date of the enactment of this paragraph, subsection
        (a) shall apply to remuneration paid to a corporation by any
        Federal executive agency (as defined in section 6050M(b)).
        (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
        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.
 

Sources

    (Added Pub. L. 97-248, title III, Sec. 312(a), Sept. 3, 1982, 96
    Stat. 601; amended Pub. L. 104-168, title XII, Sec. 1201(a)(2),
    July 30, 1996, 110 Stat. 1469; Pub. L. 105-34, title X, Sec.
    1022(a), Aug. 5, 1997, 111 Stat. 923.)
 

References in Text

                             REFERENCES IN TEXT
      The date of the enactment of this paragraph, referred to in
    subsec. (d)(3), is the date of enactment of Pub. L. 105-34, which
    was approved Aug. 5, 1997.
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (d)(3). Pub. L. 105-34 added par. (3).
      1996 - Subsec. (e)(1). Pub. L. 104-168 substituted ''name,
    address, and phone number of the information contact'' for ''name
    and address''.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 1022(b) of Pub. L. 105-34 provided that: ''The amendment
    made by this section (amending this section) shall apply to returns
    the due date for which (determined without regard to any extension)
    is more than 90 days after the date of the enactment of this Act
    (Aug. 5, 1997).''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-168 applicable to statements required to
    be furnished after Dec. 31, 1996 (determined without regard to any
    extension), see section 1201(b) of Pub. L. 104-168, set out as a
    note under section 6041 of this title.
                               EFFECTIVE DATE
      Section 312(c) of Pub. L. 97-248 provided that: ''The amendments
    made by this section (enacting this section and amending section
    6678 of this title) shall apply to payments and sales made after
    December 31, 1982.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 3406, 3509, 6721, 6722,
    6724 of this title.