26 U.S.C. § 6041A — Returns regarding payments of remu-

Page 3355 TITLE 26—INTERNAL REVENUE CODE § 6041A ment under any section of subpart B of part III of sub- chapter 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 [Mar. 9, 2002], 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 regula- tions issued under section 6051 of such Code or in such other manner as provided by the Secretary.’’ EMPLOYER’S DUTIES IN CONNECTION WITH RECORDING AND REPORTING OF TIPS Pub. L. 94–455, title XXI, § 2211, Oct. 4, 1976, 90 Stat. 1905, as amended by Pub. L. 99–514, § 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 [for- merly I.R.C. 1954] to report charge account tips of em- ployees 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 rul- ings. ‘‘(b) EFFECTIVE DATE.—This section shall take effect on January 1, 1976.’’ § 6041A. Returns regarding payments of remu- neration 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 remunera- tion 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 ad- dress of the recipient of such payments. For pur- poses of the preceding sentence, the term ‘‘serv- ice-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 busi- ness 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 reg- ulations, 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, accord- ing to the forms or regulations prescribed by the Secretary, setting forth the name and ad- dress 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 serv- ices 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 govern- mental unit (and any agency or instrumen- tality thereof). (2) Special rules In the case of any payment by a govern- mental entity or any agency or instrumen- tality 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 con- trol of the payment or appropriately des- ignated for the purpose of making such re- turn. (3) Payments to corporations by Federal execu- tive agencies (A) In general Notwithstanding any regulation prescribed by the Secretary before the date of the en- actment of this paragraph, subsection (a) shall apply to remuneration paid to a cor- poration 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 para- graph. (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— Page 3356 TITLE 26—INTERNAL REVENUE CODE § 6042 (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 aggre- gate amount of payments to the person re- quired to be shown on such return. The written statement required under the pre- ceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under sub- section (a) was made. (f) Recipient to furnish name, address, and iden- tification 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 identifica- tion 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 num- ber is furnished under paragraph (1) shall in- clude such number on any return which such person is required to file under this section and to which such identification number re- lates. (Added Pub. L. 97–248, title III, § 312(a), Sept. 3, 1982, 96 Stat. 601; amended Pub. L. 104–168, title XII, § 1201(a)(2), July 30, 1996, 110 Stat. 1469; Pub. L. 105–34, title X, § 1022(a), Aug. 5, 1997, 111 Stat. 923.) Editorial Notes 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. 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’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–34, title X, § 1022(b), Aug. 5, 1997, 111 Stat. 923, provided that: ‘‘The amendment made by this sec- tion [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 en- actment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–168 applicable to state- ments required to be furnished after Dec. 31, 1996 (de- termined without regard to any extension), see section 1201(b) of Pub. L. 104–168, set out as a note under sec- tion 6041 of this title. EFFECTIVE DATE Pub. L. 97–248, title III, § 312(c), Sept. 3, 1982, 96 Stat. 603, provided that: ‘‘The amendments made by this sec- tion [enacting this section and amending section 6678 of this title] shall apply to payments and sales made after December 31, 1982.’’ § 6042. Returns regarding payments of dividends and corporate earnings and profits (a) Requirement of reporting (1) In general Every person— (A) who makes payments of dividends ag- gregating $10 or more to any other person during any calendar year, or (B) who receives payments of dividends as a nominee and who makes payments aggre- gating $10 or more during any calendar year to any other person with respect to the divi- dends so received, shall make a return according to the forms or regulations prescribed by the Secretary, set- ting forth the aggregate amount of such pay- ments and the name and address of the person to whom paid. (2) Returns required by the Secretary Every person who makes payments of divi- dends aggregating less than $10 to any other person during any calendar year shall, when required by the Secretary, make a return set- ting forth the aggregate amount of such pay- ments, and the name and address of the person to whom paid. (b) Dividend defined (1) General rule For purposes of this section, the term ‘‘divi- dend’’ means— (A) any distribution by a corporation which is a dividend (as defined in section 316); and (B) any payment made by a stockbroker to any person as a substitute for a dividend (as so defined). (2) Exceptions For purposes of this section, the term ‘‘divi- dend’’ does not include any distribution or payment— (A) to the extent provided in regulations prescribed by the Secretary— (i) by a foreign corporation, or (ii) to a foreign corporation, a non- resident alien, or a partnership not en- gaged in a trade or business in the United States and composed in whole or in part of nonresident aliens, or (B) except to the extent otherwise pro- vided in regulations prescribed by the Sec- retary, to any person described in section 6049(b)(4). (3) Special rule If the person making any payment described in subsection (a)(1)(A) or (B) is unable to de- termine the portion of such payment which is a dividend or is paid with respect to a divi- dend, he shall, for purposes of subsection (a)(1), treat the entire amount of such pay- ment as a dividend or as an amount paid with respect to a dividend. (c) 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 whose