A 6041A Reportable Payment is
determined under the Treasury Regulations.
Three times we have been
told by IRC section 6041A examined on the previous page, that the
regulations determine who's
number must be given to the person making payments.
You have read IRC section
6109 and its regulation in three chapters of this web
site.
The Treasury Regulation
under
IRC section 6041A is shown below.
As you will see, only
subsection (d) has any words within it. You will also observe
that subsection (d) only tells us which certain payments do not require
a return.
There are some Supreme Court
cases where laying taxes by implication is
forbidden. This will be covered elsewhere on this web site.
As you read through the following regulation, remember, the law
creates no duty by implication.
This regulation does NOT
create a duty for filing returns, NOR does it tell which payments are "reportable payments", thus it does
NOT create a requirement to furnish a TIN to the person paying you.
This regulation is basically
a cross reference to other regulations which may create the duty to
furnish a TIN. The cross references highlighted in bold blue
will be examined on the following pages to determine whether they
create a duty to furnish a number in regard to compensation for labor by making compensation for labor into a reportable payment.
Treasury Regulation
Sec. 1.6041A-1
Returns regarding payments of remuneration for
services and certain direct sales.
(a) through (c) [Reserved]
(d) Exceptions to return requirement. [Reserved]
(1) and (2) [Reserved]
(3) Foreign transactions--(i) In general. No return shall be required
under section 6041A with respect to payments described in this
paragraph (d)(3).
(A) Returns of information are not required for payments that a payor
can, prior to payment, associate with
documentation upon which it may
rely to treat as made to a foreign beneficial owner in accordance with
Sec. 1.1441-1(e)(1)(ii)
or
as
made to a foreign payee in accordance
with Sec. 1.6049-5(d)(1) or
presumed to be made to a foreign payee
under Sec. 1.6049-5(d)(2), (3), (4),
or (5).
However, such payments may
be reportable under Sec. 1.1461-1(b)
and (c). For purposes of this
paragraph (d)(3)(i)(A), the provisions in Sec. 1.6049-5(c)
(regarding
rules applicable to documentation of foreign status and definition of
U.S. payor and non-U.S. payor) shall apply. The provisions of Sec. 1.1441-1 shall
apply by substituting the term payor for the term withholding agent.
(B) Returns of information are not required for payments of
remuneration for services from sources outside the United States
(determined under the provisions of part I, subchapter N, chapter 1 of
the Internal Revenue Code and the regulations under those provisions)
if payments are made outside the United States by a non-U.S. payor or
non U.S. middleman.
For a definition of non U.S. payor or non-U.S.
middleman, see Sec. 1.6049-5(c)(5).
For circumstances in which a
payment is considered to be made outside the United States, see Sec. 1.6049-5(e).
(C) Returns of information are not required under sections 6041 or
6041A for amounts paid outside of the United States (within the meaning
of Sec. 1.6049-5(e)) as
remuneration for services as a direct
seller
(within the meaning of section 3508)
performed outside of the United
States or for sales described in section 6041A(b) made outside of the
United States of consumer products for resale outside of the United
States.
(ii) Payor. The term payor has the same meaning as
described in Sec. 1.6049-4(a)(2).
(iv) Conversion into United States dollars of amounts paid in foreign
currency. For rules concerning foreign currency conversion, see Sec. 1.6049-4(d)(3)(i).
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The specific parts of this
regulation which point to other regulations will be shown on the
following pages addressing and examining each cross reference.
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