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Title 26 — Internal Revenue CodeRelease 119-73

§6041A Returns regarding payments of remuneration for services and direct sales

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 61— - INFORMATION AND RETURNS › Subchapter Subchapter A— - Returns and Records › Part PART III— - INFORMATION RETURNS › Subpart Subpart B— - Information Concerning Transactions With Other Persons › § 6041A

Last updated Apr 6, 2026|Official source

Summary

Requires businesses to report payments they make for services and certain sales for resale when those payments reach set limits. If a business pays someone for services and the total for the year meets or exceeds the dollar amount in effect for that year under section 6041(a), the business must file a return. If a business sells consumer products for resale in homes or outside regular stores on a buy-sell or deposit-commission (or similar) basis and the total sales to a buyer in the year are $5,000 or more, the business must file a return. A buy-sell deal means the buyer keeps the difference between buy and sell prices as part of pay. A deposit-commission deal means the buyer keeps some or all of a buyer’s deposit as pay. No return is needed if a statement about the services must be given under sections 6051, 6052, or 6053. “Person” includes government units. Government payments must be reported even if not in a trade or business, and the officer who controls the payment must file. Payers must give each payee a written statement with the payer’s contact, the total amount reported, and, for services, the cash-tip portion and the payee’s occupation. Payees must give their name, address, and ID number and the payer must include that ID on the return.

Full Legal Text

Title 26, §6041A

Internal Revenue Code — Source: USLM XML via OLRC

(a)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 equals or exceeds the dollar amount in effect for such calendar year under section 6041(a),
(b)(1)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,
(2)For purposes of paragraph (1)—
(A)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)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)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)(1)The term “person” includes any governmental unit (and any agency or instrumentality thereof).
(2)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)(A)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)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)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,
(2)in the case of subsection (a), the aggregate amount of payments to the person required to be shown on such return, and
(3)in the case of subsection (a), 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.
(f)(1)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)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.

Legislative History

Notes & Related Subsidiaries

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

2025—Subsec. (a). Pub. L. 119–21, § 70201(f)(2)(A), inserted “(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)” after “amount of such payments” in concluding provisions. Subsec. (a)(2). Pub. L. 119–21, § 70433(c), substituted “equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)” for “is $600 or more”. Subsec. (e)(3). Pub. L. 119–21, § 70201(f)(2)(B), added par. (3). 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 2025 AmendmentAmendment by section 70201(f)(2) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2024, see section 70201(j) of Pub. L. 119–21, set out as a note under section 45B of this title. Amendment by section 70433(c) of Pub. L. 119–21 applicable with respect to payments made after Dec. 31, 2025, see section 70433(f) of Pub. L. 119–21, set out as a note under section 3406 of this title.

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 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 AmendmentAmendment 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

Pub. L. 97–248, title III, § 312(c), Sept. 3, 1982, 96 Stat. 603, 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.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 6041A

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73