I am not a Tax Lawyer, Nor do I play Dan Evans on the internet.
I am not a Certified Public Accountant, Nor do I play Paul Thomas on the internet.
I am not an Enrolled Agent, Nor do I play Richard Macdonald on the internet.
Go look it up for yourself.

U.S. Federal Income Tax

Subjugation by taxation

The Regulations Determine What a 6041A Reportable Payment Is

Table of Contents

        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).

        The specific parts of this regulation which point to other regulations will be shown on the following pages addressing and examining each cross reference.

Next Page

Table of Contents