Which of the people and businesses I paid actually need a 1099, and which form and box does each payment go on?

Start here: the tests a payment must pass before it is reportable

Except as otherwise provided in §§ 1.6041-3 and 1.6041-4, every person engaged in a trade or business must make an information return for each calendar year for the payments it makes during that calendar year, in the course of its trade or business, to another person of fixed or determinable income of the kinds described in paragraph (a)(1)(i)(A) or (B). (jurisdiction: United States (federal), entity_scope: every person engaged in a trade or business, as payor, effective_from: 2017-01-06, conditions: payment made in the course of the payor's trade or business; payment made to another person; income is fixed or determinable and of a kind described in (a)(1)(i)(A) or (B); subject to the exceptions in §§ 1.6041-3 and 1.6041-4)

“Except as otherwise provided in §§ 1.6041-3 and 1.6041-4 , every person engaged in a trade or business shall make an information return for each calendar year with respect to payments it makes during the calendar year in the course of its trade or business to another person of fixed or determinable income described in paragraph (a)(1)(i) (A) or (B) of this section.”

A payment must generally be reported as nonemployee compensation if four conditions are met: the payment was made to someone who is not the payer's employee; it was made for services in the course of the payer's trade or business (including government agencies and nonprofit organizations); it was made to an individual, partnership, estate, or, in some cases, a corporation; and payments to that payee totalled at least $2,000 during the year. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: payments made to the payee during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: all four listed conditions are met)

“If the following four conditions are met, you must generally report a payment as NEC. You made the payment to someone who is not your employee. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations). You made the payment to an individual, partnership, estate, or, in some cases, a corporation. You made payments to the payee of at least $2,000 during the year.”

For payments made by payment card (as defined in § 1.6050W-1(b)(3)) or through a third party payment network (as defined in § 1.6050W-1(c)(3)) after December 31, 2010 that are required to be reported on an information return under section 6050W, transactions described in paragraph (a)(1)(ii) that would otherwise be subject to reporting under both section 6041 and section 6050W are reported under section 6050W and not under section 6041. (jurisdiction: United States (federal), entity_scope: payors making payments by payment card or through a third party payment network, effective_from: 2011-01-01, conditions: payments made after December 31, 2010; the transaction is required to be reported on an information return under section 6050W; payment made by payment card as defined in § 1.6050W-1(b)(3) or through a third party payment network as defined in § 1.6050W-1(c)(3))

“For payments made by payment card (as defined in § 1.6050W-1(b)(3) ) or through a third party payment network (as defined in § 1.6050W-1(c)(3) ) after December 31, 2010, that are required to be reported on an information return under section 6050W (relating to payment card and third party network transactions), the following rule applies. Transactions that are described in paragraph (a)(1)(ii) of this section that otherwise would be subject to reporting under both sections 6041 and 6050W are reported under section 6050W and not section 6041.”

Partly established. Established: the determination as an ordered set of independent tests that must all be satisfied (S02). Missing: that failing any single test removes the payment from reporting.

Which payers have to file information returns at all

See Except as otherwise provided in §§ 1.6041-3 and 1.6041-4, every person engaged in a trade or business must make an information return for each calendar year for the payments it makes during that calendar year, in the course of its trade or business, to another person of fixed or determinable income of the kinds described in paragraph (a)(1)(i)(A) or (B).

The term “all persons engaged in a trade or business” as used in section 6041(a) includes not only persons so engaged for gain or profit but also organizations whose activities are not for the purpose of gain or profit. (jurisdiction: United States (federal), entity_scope: persons and organizations within section 6041(a), effective_from: 2017-01-06)

“The term “all persons engaged in a trade or business”, as used in section 6041(a), includes not only those so engaged for gain or profit, but also organizations the activities of which are not for the purpose of gain or profit.”

Section 6041(a) applies only to payments made in the course of a trade or business; it therefore does not apply to an amount paid by the proprietor of a business to a physician for medical services rendered by that physician to the proprietor's child. (jurisdiction: United States (federal), entity_scope: persons engaged in a trade or business, as to payments made outside that trade or business, effective_from: 2017-01-06)

“On the other hand, section 6041(a) applies only to payments in the course of trade or business; hence it does not apply to an amount paid by the proprietor of a business to a physician for medical services rendered by the physician to the proprietor's child.”

Reporting on Form 1099-MISC or Form 1099-NEC is required only for payments made in the course of the payer's trade or business; personal payments are not reportable, and a payer is engaged in a trade or business if it operates for gain or profit. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Report on Form 1099-MISC or Form 1099-NEC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit.”

Partly established. Established: which payers are required to file information returns for payments made in the course of a trade or business (S01, S05); that a payment a payer makes outside its trade or business, including a personal payment, falls outside the obligation (S06, S07). Missing: which payers are outside that obligation.

Test 1 - Does your own business carry the obligation?

See The term “all persons engaged in a trade or business” as used in section 6041(a) includes not only persons so engaged for gain or profit but also organizations whose activities are not for the purpose of gain or profit.

See Section 6041(a) applies only to payments made in the course of a trade or business; it therefore does not apply to an amount paid by the proprietor of a business to a physician for medical services rendered by that physician to the proprietor's child.

See Reporting on Form 1099-MISC or Form 1099-NEC is required only for payments made in the course of the payer's trade or business; personal payments are not reportable, and a payer is engaged in a trade or business if it operates for gain or profit.

Which payees are reportable, which are exempt, and what the classification rests on

Generally, payments to corporations are not reportable; however, the publication lists categories of payments to corporations that must be reported, including medical and health care payments, withheld federal income tax or foreign tax, barter exchange transactions, cancellation of debt, attorneys’ fees and gross proceeds paid to attorneys, fish purchases for cash, payment card and third party network transactions, and federal executive agency payments for services. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Payers making payments to corporations, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“Generally, payments to corporations are not reportable. See, for example, Regulations section 1.6049-4(c)(1)(ii). However, you must report payments to corporations for the following. Medical and health care payments (Form 1099-MISC). Withheld federal income tax or foreign tax. Barter exchange transactions (Form 1099-B). Broker and barter transactions for an S corporation (Form 1099-B, Form 1099-DA). Substitute payments in lieu of dividends and tax-exempt interest (Form 1099-MISC). Acquisitions or abandonments of secured property (Form 1099-A). Cancellation of debt (Form 1099-C). Payments of attorneys’ fees and gross proceeds paid to attorneys (Form 1099-NEC, Form 1099-MISC). Fish purchases for cash (Form 1099-MISC). Credits and interest for qualified tax credit bonds reported on Forms 1097-BTC and 1099-INT. Payment card and third party network transactions (Form 1099-K). Federal executive agency payments for services (Form 1099-MISC). For additional reporting requirements, see Rev. Rul. 2003-66 on page 1115 of Internal Revenue Bulletin 2003-26 at IRS.gov/Pub/IRS-IRBs/IRB03-26.pdf . Payments made in a reportable policy sale (Form 1099-LS). In addition, the following information returns are furnished to corporations, although the information returns do not report payments: Form 1099-SB, Seller’s Investment in Life Insurance Contract; and Form 1098-F, Fines, Penalties, and Other Amounts.”

Reporting is generally required for all payments to partnerships; for example, payments exceeding the minimum filing threshold made in the course of the payer’s trade or business to an architectural firm that is a partnership are reportable on Form 1099-MISC. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Payers making payments to partnerships, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”), conditions: The example given concerns payments made in the course of the payer’s trade or business that exceed the minimum threshold required for filing)

“Reporting is generally required for all payments to partnerships. For example, payments that exceed the minimum threshold required for filing that were made in the course of your trade or business to an architectural firm that is a partnership are reportable on Form 1099-MISC.”

A payer that does not have a Form W-9, an appropriate Form W-8, or other valid documentation, or that cannot allocate a payment to a specific payee, prior to payment, is required to use certain presumption rules to determine the payee’s status as a U.S. or foreign person and the payee’s classification as an individual, trust, estate, corporation, or partnership. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Payers without a Form W-9, appropriate Form W-8, or other valid documentation, or unable to allocate a payment to a specific payee, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”), conditions: Applies prior to payment)

“If you are the payer and do not have a Form W-9, appropriate Form W-8, or other valid documentation, or you cannot allocate a payment to a specific payee, prior to payment, you are required to use certain presumption rules to determine the following. The status of the payee as a U.S. or foreign person. The classification of the payee as an individual, trust, estate, corporation, or partnership.”

An organization exempt from taxation under section 501(a), as described in § 1.6049-4(c)(1)(ii)(B)(1), or an individual retirement plan, as described in § 1.6049-4(c)(1)(ii)(C), is listed in paragraph (p) among the persons payments to whom require no return of information under section 6041. (jurisdiction: United States (federal), entity_scope: Payors otherwise subject to information reporting under section 6041 and §§ 1.6041-1 and 1.6041-2)

“( 2 ) An organization exempt from taxation under section 501(a), as described in § 1.6049-4(c)(1)(ii)(B)( 1 ) , or an individual retirement plan, as described in § 1.6049-4(c)(1)(ii)(C) .”

Partly established. Established: which payee types are reportable (S02); the exceptions that make an otherwise-exempt payee reportable (S09); the payee's own certification as the evidence that establishes a payee's classification (S14); what a payer must rely on where no certification has been obtained (S11). Missing: which payee types are exempt from information reporting.

Test 2 - What kind of payee is it, and how their W-9 evidences that

See Generally, payments to corporations are not reportable; however, the publication lists categories of payments to corporations that must be reported, including medical and health care payments, withheld federal income tax or foreign tax, barter exchange transactions, cancellation of debt, attorneys’ fees and gross proceeds paid to attorneys, fish purchases for cash, payment card and third party network transactions, and federal executive agency payments for services.

See Reporting is generally required for all payments to partnerships; for example, payments exceeding the minimum filing threshold made in the course of the payer’s trade or business to an architectural firm that is a partnership are reportable on Form 1099-MISC.

The Line 3a chart maps the payee on line 1 to a classification box: a corporation checks Corporation; an individual or sole proprietorship checks Individual/sole proprietor; an LLC classified as a partnership for U.S. federal tax purposes, or an LLC that has filed Form 8832 or 2553 electing to be taxed as a corporation, checks Limited liability company and enters the tax classification P, C, or S; a partnership checks Partnership; and a trust/estate checks Trust/estate. (jurisdiction: United States (U.S. federal tax; Internal Revenue Code) - IRS Form W-9 and its instructions, entity_scope: the payee types listed in the chart (corporation, individual, sole proprietorship, LLC, partnership, trust/estate), conditions: classification is of the person whose name is entered on line 1)

“IF the entity/individual on line 1 is a(n) . . . THEN check the box for . . . • Corporation • Individual or • Sole proprietorship Corporation. Individual/sole proprietor. • LLC classified as a partnership for U.S. federal tax purposes or • LLC that has filed Form 8832 or 2553 electing to be taxed as a corporation Limited liability company and enter the appropriate tax classification: P = Partnership, C = C corporation, or S = S corporation. • Partnership • Trust/estate Partnership. Trust/estate.”

A requester may rely on the payee's claim of exemption unless it has actual knowledge that the exempt payee code and/or the classification selected are not valid or that they are inconsistent with each other, in which case it may rely on the Form W-9 to obtain the payee's TIN but must treat the payee as non-exempt. (jurisdiction: United States — federal tax law (Internal Revenue Code); IRS instructions, entity_scope: Requesters of Form W-9 — persons required to file U.S. information returns (payors/withholding agents))

“You may rely on the payee’s claim of exemption unless you have actual knowledge that the exempt payee code and/or classification selected are not valid, or if they are inconsistent with each other. In that case, you may rely on the Form W-9 for purposes of obtaining the payee’s TIN, but you must treat the payee as non-exempt.”

Partly established. Established: which payee classes are reportable (S02). Missing: which payee classes are exempt; that the classification comes from the payee's certification rather than from the payer's assumption about the payee.

Which kinds of payment are reportable

One reportable category is salaries, wages, commissions, fees, and other forms of compensation for services rendered, aggregating $600 or more; the listed items are examples of forms of compensation for services, not a closed list. (jurisdiction: United States (federal), entity_scope: payments by a person engaged in a trade or business to another person, effective_from: 2017-01-06, conditions: amounts of this kind aggregating $600 or more)

“Salaries, wages, commissions, fees, and other forms of compensation for services rendered aggregating $600 or more.”

Income is fixed when it is to be paid in amounts definitely predetermined, and income is determinable whenever there is a basis of calculation by which the amount to be paid may be ascertained. (jurisdiction: United States (federal), entity_scope: income of the kinds within § 1.6041-1(a)(1)(i), effective_from: 2017-01-06)

“Income is fixed when it is to be paid in amounts definitely predetermined. Income is determinable whenever there is a basis of calculation by which the amount to be paid may be ascertained.”

Not established from an authoritative source.

Test 3 - What was the payment for?

See A payment must generally be reported as nonemployee compensation if four conditions are met: the payment was made to someone who is not the payer's employee; it was made for services in the course of the payer's trade or business (including government agencies and nonprofit organizations); it was made to an individual, partnership, estate, or, in some cases, a corporation; and payments to that payee totalled at least $2,000 during the year.

See One reportable category is salaries, wages, commissions, fees, and other forms of compensation for services rendered, aggregating $600 or more; the listed items are examples of forms of compensation for services, not a closed list.

Nonemployee compensation of $2,000 or more is entered in box 1a, including fees, commissions, prizes and awards for services performed as a nonemployee and other forms of compensation for services performed for the payer's trade or business by an individual who is not the payer's employee, oil and gas payments for a working interest whether or not services are performed, and expenses incurred for the use of an entertainment facility that the payer treats as compensation to a nonemployee; federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Enter nonemployee compensation (NEC) of $2,000 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, and other forms of compensation for services performed for your trade or business by an individual who is not your employee. Include oil and gas payments for a working interest, whether or not services are performed. Also, include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee. Federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box. See Rev. Rul. 2003-66.”

Not established from an authoritative source.

Goods and merchandise, and invoices that cover both goods and services

Payments of bills for merchandise, telegrams, telephone, freight, storage and similar charges are among the payments for which no return of information is required under section 6041; the list is stated as an open one ending in "and similar charges". (jurisdiction: United States (federal), entity_scope: Payors otherwise subject to information reporting under section 6041 and §§ 1.6041-1 and 1.6041-2)

“( c ) Payments of bills for merchandise, telegrams, telephone, freight, storage, and similar charges.”

Payment for services is reported in box 1a including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service; the example given is that the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts is reported if furnishing parts was incidental to repairing the auto. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: supplying the parts or materials was incidental to providing the service)

“The following are some examples of payments to be reported in box 1a . Professional service fees, such as fees to attorneys (including corporations), accountants, architects, contractors, engineers, etc. Fees paid by one professional to another, such as fee-splitting or referral fees. Payments by attorneys to witnesses or experts in legal adjudication. Payment for services, including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service. For example, report the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts, if furnishing parts was incidental to repairing the auto. Commissions paid to nonemployee salespersons that are subject to repayment but not repaid during the calendar year. A fee paid to a nonemployee, including an independent contractor, or travel reimbursement for which the nonemployee did not account to the payer, if the fee and reimbursement total at least $2,000. To help you determine whether someone is an independent contractor or an employee, see Pub. 15-A .”

Where a machine rental is part of a contract that includes both the use of the machine and the operator, the rental is prorated between the rent of the machine, reported in box 1 of Form 1099-MISC, and the operator's charge, reported in box 1a of Form 1099-NEC. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: machine rental contract covering both the use of the machine and the operator)

“Enter amounts of $2,000 or more for all types of rents, such as any of the following. Real estate rentals paid for office space. However, you do not have to report these payments on Form 1099-MISC if you paid them to a real estate agent or property manager. But the real estate agent or property manager must use Form 1099-MISC to report the rent paid over to the property owner. See Regulations section 1.6041-3(d) and Regulations section 1.6041-1(e)(5), Example 5. Machine rentals (for example, renting a bulldozer to level your parking lot). If the machine rental is part of a contract that includes both the use of the machine and the operator, prorate the rental between the rent of the machine (report that in box 1 ) and the operator’s charge (report that on Form 1099-NEC in box 1a ). Pasture rentals (for example, farmers paying for the use of grazing land). Public housing agencies must report in box 1 rental assistance payments made to owners of housing projects. See Rev. Rul. 88-53, 1988-1 C.B. 384.”

Telling services apart from goods on the same bill

See Payments of bills for merchandise, telegrams, telephone, freight, storage and similar charges are among the payments for which no return of information is required under section 6041; the list is stated as an open one ending in "and similar charges".

See Payment for services is reported in box 1a including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service; the example given is that the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts is reported if furnishing parts was incidental to repairing the auto.

See Where a machine rental is part of a contract that includes both the use of the machine and the operator, the rental is prorated between the rent of the machine, reported in box 1 of Form 1099-MISC, and the operator's charge, reported in box 1a of Form 1099-NEC.

The dollar threshold for each category

For tax years beginning after 2025 the minimum threshold amount for reporting certain payments on certain information returns and/or performing backup withholding on those payments increased to $2,000, and that amount may be adjusted for inflation beginning in calendar year 2027. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: tax years beginning after 2025, conditions: applies to the reporting of certain payments on certain information returns and to backup withholding on those payments)

“For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027.”

Among the payments requiring a Form 1099-MISC for a person paid during the year are at least $10 in royalties (box 2) or broker payments in lieu of dividends or tax-exempt interest (box 8), any fishing boat proceeds (box 5), and at least $600 in gross proceeds paid to an attorney (box 10). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“File Form 1099-MISC, Miscellaneous Information, for each person in the course of your business to whom you have paid the following during the year. At least $10 in royalties (see the instructions for box 2 ) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8 ). Any fishing boat proceeds received ( box 5 ). At least $600 in gross proceeds paid to an attorney ( box 10 ) (see Payments to attorneys , later).”

A $2,000 threshold applies to the following Form 1099-MISC categories: rents (box 1); prizes and awards, including certain non-government grants (box 3); other income payments (box 3); generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3); medical and health care payments (box 6); crop insurance proceeds (box 9); section 409A deferrals (box 12); and nonqualified deferred compensation (box 15). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“At least $2,000 in: Rents ( box 1 ); Prizes and awards, including certain non-government grants ( box 3 ); Other income payments ( box 3 ); Generally, the cash paid from a notional principal contract to an individual, partnership, or estate ( box 3 ); Medical and health care payments ( box 6 ); Crop insurance proceeds ( box 9 ); Section 409A deferrals ( box 12 ); or Nonqualified deferred compensation ( box 15 ).”

Form 1099-NEC is filed for each person, in the course of the payer's business during the year, to whom the payer has paid at least $2,000 in services performed by someone who is not the payer's employee (box 1a) or in payments to an attorney (box 1a). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business during the year to whom you have paid at least $2,000 in: Services performed by someone who is not your employee (including parts and materials) ( box 1a ); or Payments to an attorney ( box 1a ). (See Payments to attorneys , later.)”

Partly established. Established: the basis on which payments are aggregated toward the threshold (S02, S26, S27). Missing: the reporting threshold applicable to each reportable payment category.

Test 4 - What you add up, over what period, to reach the threshold

See A payment must generally be reported as nonemployee compensation if four conditions are met: the payment was made to someone who is not the payer's employee; it was made for services in the course of the payer's trade or business (including government agencies and nonprofit organizations); it was made to an individual, partnership, estate, or, in some cases, a corporation; and payments to that payee totalled at least $2,000 during the year.

See A $2,000 threshold applies to the following Form 1099-MISC categories: rents (box 1); prizes and awards, including certain non-government grants (box 3); other income payments (box 3); generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3); medical and health care payments (box 6); crop insurance proceeds (box 9); section 409A deferrals (box 12); and nonqualified deferred compensation (box 15).

Form 1099-MISC is filed for each person, in the course of the payer's business, to whom the payer has paid the listed amounts during the year, so the reportable total is built per person from payments made during the year. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“File Form 1099-MISC, Miscellaneous Information, for each person in the course of your business to whom you have paid the following during the year.”

Forms 1097, 1098, 1099, 3921, 3922, and W-2G are used to report amounts received, paid, credited, donated, transferred, or canceled (in the case of Form 1099-C) during the calendar year, while Forms 5498, 5498-ESA, 5498-QA, and 5498-SA report amounts contributed and the fair market value of an account for the calendar year. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Filers (payers) of Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“Forms 1097, 1098, 1099, 3921, 3922, and W-2G are used to report amounts received, paid, credited, donated, transferred, or canceled (in the case of Form 1099-C) during the calendar year. Forms 5498, 5498-ESA, 5498-QA, and 5498-SA are used to report amounts contributed and the fair market value (FMV) of an account for the calendar year.”

Partly established. Established: the threshold (S02, S15, S23, S24, S25, S26, S61); what is aggregated toward the threshold (S02, S15, S26, S27, S61); over what period payments are aggregated (S02, S26, S27, S28, S61). Missing: whether aggregation runs per payee or per payee per category.

Payments a card issuer or payment network already reports

See For payments made by payment card (as defined in § 1.6050W-1(b)(3)) or through a third party payment network (as defined in § 1.6050W-1(c)(3)) after December 31, 2010 that are required to be reported on an information return under section 6050W, transactions described in paragraph (a)(1)(ii) that would otherwise be subject to reporting under both section 6041 and section 6050W are reported under section 6050W and not under section 6041.

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC or Form 1099-NEC. (jurisdiction: United States (federal), entity_scope: Payers who would otherwise report on Form 1099-MISC or Form 1099-NEC; payment settlement entities reporting under section 6050W, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC or Form 1099-NEC. See the separate Instructions for Form 1099-K.”

A PSE is a domestic or foreign entity that is either a merchant acquiring entity (a bank or other organization contractually obliged to pay participating payees in settlement of payment card transactions) or a TPSO (the central organization contractually obliged to pay participating payees of third party network transactions). (jurisdiction: United States (federal), entity_scope: payment settlement entities (PSEs), domestic or foreign)

“A PSE is a domestic or foreign entity that is a merchant acquiring entity, that is, a bank or other organization that has the contractual obligation to make payment to participating payees in settlement of payment card transactions; or a TPSO, that is, the central organization that has the contractual obligation to make payments to participating payees of third party network transactions.”

Healthcare networks, in-house accounts payable departments and automated clearing houses do not qualify as TPSOs and do not report under section 6050W. (jurisdiction: United States (federal), entity_scope: healthcare networks, in-house accounts payable departments, automated clearing houses)

“Healthcare networks, in-house accounts payable departments, and automated clearing houses do not qualify as TPSOs and do not report under section 6050W.”

Partly established. Established: the exclusion for payments settled by card or through a third-party payment network (S03, S29, S33); which party reports those payments instead (S29, S33). Missing: how a payer identifies such payments.

Test 5 - How was the payment settled?

See Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC or Form 1099-NEC.

See Healthcare networks, in-house accounts payable departments and automated clearing houses do not qualify as TPSOs and do not report under section 6050W.

Solely for purposes of paragraph (a)(1)(iv), the de minimis threshold for third party network transactions in § 1.6050W-1(c)(4) is disregarded when determining whether the transaction is subject to reporting under section 6050W. (jurisdiction: United States (federal), entity_scope: payors applying the § 1.6041-1(a)(1)(iv) relief, effective_from: 2011-01-01)

“Solely for purposes of this paragraph, the de minimis threshold for third party network transactions in § 1.6050W-1(c)(4) is disregarded in determining whether the transaction is subject to reporting under section 6050W.”

In the regulation's Example 1, where a restaurant owner pays $600 of fixed or determinable income to a repairman by credit card and a merchant acquiring bank is responsible for making the payment, the payor is not required to file an information return under section 6041 for the transaction because the merchant acquiring bank, as the payment settlement entity for the payment card transaction, is required to file an information return under section 6050W. (jurisdiction: United States (federal), entity_scope: the payor in the stated example (a trade or business paying by credit card), effective_from: 2011-01-01, conditions: worked example in the regulation, on its stated facts)

“Example 1. Restaurant owner A, in the course of business, pays $600 of fixed or determinable income to B, a repairman, by credit card. B is one of a network of unrelated persons that has agreed to accept A's credit card as payment under an agreement that provides standards and mechanisms for settling the transactions between a merchant acquiring bank and the persons who accept the cards. Merchant acquiring bank Y is responsible for making the payment to B. Under paragraph (a)(1)(iv) of this section, A, as payor, is not required to file an information return under section 6041 with respect to the transaction because Y, as the payment settlement entity for the payment card transaction, is required to file an information return under section 6050W.”

Partly established. Established: which payments are excluded because a card issuer or third-party payment network reports them (S03, S29, S33). Missing: how the payer identifies those payments.

Which return carries each payment type, and which box

See Among the payments requiring a Form 1099-MISC for a person paid during the year are at least $10 in royalties (box 2) or broker payments in lieu of dividends or tax-exempt interest (box 8), any fishing boat proceeds (box 5), and at least $600 in gross proceeds paid to an attorney (box 10).

See A $2,000 threshold applies to the following Form 1099-MISC categories: rents (box 1); prizes and awards, including certain non-government grants (box 3); other income payments (box 3); generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3); medical and health care payments (box 6); crop insurance proceeds (box 9); section 409A deferrals (box 12); and nonqualified deferred compensation (box 15).

See Form 1099-NEC is filed for each person, in the course of the payer's business during the year, to whom the payer has paid at least $2,000 in services performed by someone who is not the payer's employee (box 1a) or in payments to an attorney (box 1a).

Sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale may be reported either on Form 1099-MISC (box 7) or on Form 1099-NEC (box 2). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“You may either file Form 1099-MISC ( box 7 ) or Form 1099-NEC ( box 2 ) to report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale.”

Not established from an authoritative source.

Naming the form and the box for each payment you will report

Payments more appropriately described as rent, royalties, amounts not subject to self-employment tax, or interest are not reported in box 1a of Form 1099-NEC but in box 1a of Form 1099-MISC, box 2 of Form 1099-MISC, box 3 of Form 1099-MISC, and on Form 1099-INT respectively; deceased employee wages paid in the year after death are reported in box 3 of Form 1099-MISC. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Do not report in box 1a : Expense reimbursements paid to volunteers of nonprofit organizations; Deceased employee wages paid in the year after death (report in box 3 of Form 1099-MISC) (see Deceased employee’s wages , earlier); Payments more appropriately described as rent (report in box 1a of Form 1099-MISC), royalties (report in box 2 of Form 1099-MISC), not subject to self-employment tax (report in box 3 of Form 1099-MISC), and interest (use Form 1099-INT); The cost of current life insurance protection (report on Form W-2 or Form 1099-R); An employee’s wages, travel or auto allowance, or bonuses and prizes (report on Form W-2); and The cost of group-term life insurance paid on behalf of a former employee (report on Form W-2).”

Payments to independent contractors must generally be reported on Form 1099-NEC in box 1a. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Generally, you must report payments to independent contractors on Form 1099-NEC in box 1a . See the instructions for box 1a .”

Box 1a of Form 1099-NEC shows the recipient's total nonemployee compensation. (jurisdiction: United States (federal), entity_scope: Recipients of Form 1099-NEC (persons paid nonemployee compensation), effective_from: calendar year 2026, conditions: Form 1099-NEC (Rev. December 2026); the December 2026 revision is used first to report amounts for calendar year 2026, with first filings with the IRS beginning January 2027)

“Box 1a. Shows your total nonemployee compensation.”

Not established from an authoritative source.

The special rules that override the general answer

The following payments made to corporations must generally be reported on Form 1099-MISC: cash payments for the purchase of fish for resale (box 11), medical and health care payments (box 6), substitute payments in lieu of dividends or tax-exempt interest (box 8), and gross proceeds paid to an attorney (box 10). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: payment is made to a corporation)

“The following payments made to corporations must generally be reported on Form 1099-MISC. Cash payments for the purchase of fish for resale reported in box 11 . Medical and health care payments reported in box 6 . Substitute payments in lieu of dividends or tax-exempt interest reported in box 8 . Gross proceeds paid to an attorney reported in box 10 .”

Payments of rent to real estate agents or property managers are among the payments for which a Form 1099-MISC is not required; however, the real estate agent or property manager must use Form 1099-MISC to report the rent paid over to the property owner. (jurisdiction: United States (federal), entity_scope: Payers of rent; real estate agents and property managers who pay rent over to a property owner, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following. Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). However, see Reportable payments to corporations , earlier. Payments for merchandise, telegrams, telephone, freight, storage, and similar items. Payments of rent to real estate agents or property managers. However, the real estate agent or property manager must use Form 1099-MISC to report the rent paid over to the property owner. See Regulations section 1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5; and, the instructions for box 1 . Wages paid to employees (report on Form W-2). Military differential wage payments made to employees while they are on active duty in the U.S. Armed Forces or other uniformed services (report on Form W-2). Business travel allowances paid to employees (may be reportable on Form W-2). Cost of current life insurance protection (report on Form W-2 or Form 1099-R).”

Gross royalty payments (or similar amounts) of $10 or more are entered in box 2, with royalties from oil, gas, or other mineral properties reported before reduction for severance and other taxes withheld and paid; surface royalties are reported in box 1 instead, oil or gas payments for a working interest are reported in box 1a of Form 1099-NEC, and timber royalties made under a pay-as-cut contract are reported on Form 1099-S. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: gross amounts paid during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Enter gross royalty payments (or similar amounts) of $10 or more. Report royalties from oil, gas, or other mineral properties before reduction for severance and other taxes that may have been withheld and paid. Do not include surface royalties. They should be reported in box 1 . Do not report oil or gas payments for a working interest in box 2; report payments for working interests in box 1a of Form 1099-NEC. Do not report timber royalties made under a pay-as-cut contract; report these timber royalties on Form 1099-S.”

Prizes and awards that are not for services performed are entered in box 3, including the fair market value of merchandise won on game shows and amounts paid to a winner of a sweepstakes not involving a wager; if a wager is made, the winnings are reported on Form W-2G. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Also, enter in box 3 prizes and awards that are not for services performed. Include the fair market value (FMV) of merchandise won on game shows. Also, include amounts paid to a winner of a sweepstakes not involving a wager. If a wager is made, report the winnings on Form W-2G.”

Attorneys, medical providers and other payees the corporation exemption does not cover

The exemption from reporting payments made to corporations does not apply to payments for legal services, so attorneys' fees (box 1a of Form 1099-NEC) or gross proceeds (box 10 of Form 1099-MISC) must be reported to corporations that provide legal services. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: payee is a corporation that provides legal services)

“The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys’ fees (in box 1a of Form 1099-NEC) or gross proceeds (in box 10 of Form 1099-MISC), as described earlier, to corporations that provide legal services.”

The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations; however, payments made to a tax-exempt hospital or extended care facility, or to one owned and operated by the United States (or its territories), a state, the District of Columbia, or any of their political subdivisions, agencies, or instrumentalities, are not required to be reported. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: payee is a corporation providing medical or health care services, or a tax-exempt or government-owned hospital or extended care facility)

“The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations. However, you are not required to report payments made to a tax-exempt hospital or extended care facility or to a hospital or extended care facility owned and operated by the United States (or its territories), a state, the District of Columbia, or any of their political subdivisions, agencies, or instrumentalities.”

Under section 6045(f), payments are reported in box 10 of Form 1099-MISC where they are made to an attorney in the course of the payer's trade or business in connection with legal services but not for the attorney's services (for example, as in a settlement agreement), total $600 or more, and are not reportable by the payer in box 1a of Form 1099-NEC. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: all three listed conditions are met)

“Under section 6045(f), report in box 10 payments that: Are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example, as in a settlement agreement; Total $600 or more; and Are not reportable by you in box 1a of Form 1099-NEC.”

The term 'attorney' includes a law firm or other provider of legal services, and attorneys' fees of $2,000 or more paid in the course of the payer's trade or business are reportable in box 1a of Form 1099-NEC under section 6041A(a)(1). (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: attorneys' fees of $2,000 or more paid in the course of a trade or business)

“The term “attorney” includes a law firm or other provider of legal services. Attorneys’ fees of $2,000 or more paid in the course of your trade or business are reportable in box 1a of Form 1099-NEC, under section 6041A(a)(1).”

Employees, their wages and their expense reimbursements

Wages paid to employees are reported on Form W-2 rather than on Form 1099-MISC, as are military differential wage payments made to employees while on active duty in the U.S. Armed Forces or other uniformed services; business travel allowances paid to employees may be reportable on Form W-2, and the cost of current life insurance protection is reported on Form W-2 or Form 1099-R. (jurisdiction: United States (federal), entity_scope: Payers making payments to their own employees, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following. Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). However, see Reportable payments to corporations , earlier. Payments for merchandise, telegrams, telephone, freight, storage, and similar items. Payments of rent to real estate agents or property managers. However, the real estate agent or property manager must use Form 1099-MISC to report the rent paid over to the property owner. See Regulations section 1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5; and, the instructions for box 1 . Wages paid to employees (report on Form W-2). Military differential wage payments made to employees while they are on active duty in the U.S. Armed Forces or other uniformed services (report on Form W-2). Business travel allowances paid to employees (may be reportable on Form W-2). Cost of current life insurance protection (report on Form W-2 or Form 1099-R).”

Form 1099-MISC is not used to report employee business expense reimbursements: payments made to employees under a nonaccountable plan are reported as wages on Form W-2, and payments made to employees under an accountable plan are generally not reportable on Form W-2 except in certain cases when a per diem or mileage allowance is paid. (jurisdiction: United States (federal), entity_scope: Payers reimbursing business expenses of their own employees, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Do not use Form 1099-MISC to report employee business expense reimbursements. Report payments made to employees under a nonaccountable plan as wages on Form W-2. Generally, payments made to employees under an accountable plan are not reportable on Form W-2, except in certain cases when you pay a per diem or mileage allowance. For more information, see the General Instructions for Forms W-2 and W-3 , and Pub. 463 . For information on reporting employee moving expense reimbursements on Form W-2, see the General Instructions for Forms W-2 and W-3 .”

A fee paid to a nonemployee, including an independent contractor, or a travel reimbursement for which the nonemployee did not account to the payer, is reported in box 1a if the fee and reimbursement total at least $2,000. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, accounting_basis: fee and reimbursement totalling at least $2,000, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded, conditions: the nonemployee did not account to the payer for the travel reimbursement)

“The following are some examples of payments to be reported in box 1a . Professional service fees, such as fees to attorneys (including corporations), accountants, architects, contractors, engineers, etc. Fees paid by one professional to another, such as fee-splitting or referral fees. Payments by attorneys to witnesses or experts in legal adjudication. Payment for services, including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service. For example, report the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts, if furnishing parts was incidental to repairing the auto. Commissions paid to nonemployee salespersons that are subject to repayment but not repaid during the calendar year. A fee paid to a nonemployee, including an independent contractor, or travel reimbursement for which the nonemployee did not account to the payer, if the fee and reimbursement total at least $2,000. To help you determine whether someone is an independent contractor or an employee, see Pub. 15-A .”

Wages, bonuses, prizes, and awards paid to the payer's employees are not included in box 3 and are reported on Form W-2, and prizes and awards for services performed by nonemployees, such as an award for the top commission salesperson, are not included in box 3 but are reported in box 1a of Form 1099-NEC. (jurisdiction: United States (federal), entity_scope: Payers filing Form 1099-MISC or Form 1099-NEC for payments made in the course of a trade or business, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“Do not include wages, any bonuses, prizes, and awards paid to your employees. Report these on Form W-2. Do not include in box 3 prizes and awards for services performed by nonemployees, such as an award for the top commission salesperson. Report them in box 1a of Form 1099-NEC.”

Payments that look reportable but are not

See Reporting on Form 1099-MISC or Form 1099-NEC is required only for payments made in the course of the payer's trade or business; personal payments are not reportable, and a payer is engaged in a trade or business if it operates for gain or profit.

See Payments of bills for merchandise, telegrams, telephone, freight, storage and similar charges are among the payments for which no return of information is required under section 6041; the list is stated as an open one ending in "and similar charges".

Payments of income required to be reported on Forms 1120-S, 941, W-2 and W-3 are among the payments for which no return of information is required under section 6041, subject to the cross-reference to § 1.6041-2(a) with respect to Forms W-2 and W-3. (jurisdiction: United States (federal), entity_scope: Payors otherwise subject to information reporting under section 6041 and §§ 1.6041-1 and 1.6041-2)

“( a ) Payments of income required to be reported on Forms 1120-S, 941, W-2, and W-3 (however, see § 1.6041-2(a) with respect to Forms W-2 and W-3).”

Payments made under reimbursement or other expense allowance arrangements are among the payments for which no return of information is required under section 6041 where they meet the requirements of section 62(c) and § 1.62-2, do not exceed the amount of the expenses substantiated (i.e. amounts treated as paid under an accountable plan), and are received by an employee on or after January 1, 1989 with respect to expenses paid or incurred on or after January 1, 1989. (jurisdiction: United States (federal), entity_scope: Payors otherwise subject to information reporting under section 6041 and §§ 1.6041-1 and 1.6041-2, effective_from: 1989-01-01, conditions: arrangement meets the requirements of section 62(c) and § 1.62-2; payments do not exceed the amount of the expenses substantiated; received by an employee on or after January 1, 1989; with respect to expenses paid or incurred on or after January 1, 1989)

“( 1 ) In general. Payments made under reimbursement or other expense allowance arrangements that meet the requirements of section 62(c) of the Code and § 1.62-2 , that do not exceed the amount of the expenses substantiated (i.e., amounts which are treated as paid under an accountable plan), and that are received by an employee on or after January 1, 1989, with respect to expenses paid or incurred on or after January 1, 1989.”

Partly established. Established: wages to employees as a payment that looks reportable but is not (S47, S50, S51); reimbursements under an accountable arrangement as a payment that looks reportable but is not (S48, S52); personal payments outside a trade or business as a payment that looks reportable but is not (S06, S07). Missing: why each falls outside.

Foreign payees: a separate withholding and reporting regime

See A payer that does not have a Form W-9, an appropriate Form W-8, or other valid documentation, or that cannot allocate a payment to a specific payee, prior to payment, is required to use certain presumption rules to determine the payee’s status as a U.S. or foreign person and the payee’s classification as an individual, trust, estate, corporation, or partnership.

A payee is subject to withholding only if it is a foreign person, and a foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U.S. person. (jurisdiction: United States (U.S. federal tax law administered by the IRS), entity_scope: payees of payments subject to chapter 3 or chapter 4 withholding, conditions: stated in Publication 515, for use in 2026)

“Rules relevant to chapters 3 and 4. A payee is subject to withholding only if it is a foreign person. A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U.S. person.”

In most cases a foreign person is subject to U.S. tax on its U.S. source income; most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%, a reduced rate or exemption may apply where a tax treaty exists with the foreign person's country of residence, and the tax is generally withheld (chapter 3 withholding) from the payment made to the foreign person. (jurisdiction: United States (U.S. federal tax law administered by the IRS), entity_scope: foreign persons receiving U.S. source income; withholding agents paying them, conditions: stated in Publication 515, for use in 2026)

“In most cases, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person’s country of residence and the United States. The tax is generally withheld (chapter 3 withholding) from the payment made to the foreign person.”

Recognising a foreign payee and stopping there

See A payer that does not have a Form W-9, an appropriate Form W-8, or other valid documentation, or that cannot allocate a payment to a specific payee, prior to payment, is required to use certain presumption rules to determine the payee’s status as a U.S. or foreign person and the payee’s classification as an individual, trust, estate, corporation, or partnership.

See A payee is subject to withholding only if it is a foreign person, and a foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U.S. person.

A foreign person, or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person under the cited regulations, is not to use Form W-9 and is to use the appropriate Form W-8 or Form 8233 instead. (jurisdiction: United States (U.S. federal tax; Internal Revenue Code) - IRS Form W-9 and its instructions, entity_scope: foreign persons and U.S. branches of foreign banks that have made the stated election)

“Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person (under Regulations section 1.1441-1(b)(2)(iv) or other applicable section for chapter 3 or 4 purposes), do not use Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Pub. 515).”

Foreign persons who provide a valid Form W-8, or applicable documentary evidence where permitted in lieu of a Form W-8, are exempt from backup withholding and Form 1099 reporting. (jurisdiction: United States (U.S. federal tax law administered by the IRS), entity_scope: foreign persons providing a valid Form W-8 or permitted documentary evidence, conditions: stated in Publication 515, for use in 2026)

“Tip: Foreign persons who provide a valid Form W-8 (or applicable documentary evidence when permitted in lieu of a Form W-8) are exempt from backup withholding and Form 1099 reporting.”

The evidence to keep behind each decision

Where the recipient is a U.S. person (including a U.S. resident alien), the IRS suggests that the payer request the recipient complete Form W-9 or Form W-9S as appropriate, and Form W-9 is required to be completed by recipients of certain types of payments as provided in Regulations section 31.3406(d)-1. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Payers requesting a TIN from a recipient that is a U.S. person, including a U.S. resident alien, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“If the recipient is a U.S. person (including a U.S. resident alien), the IRS suggests that you request the recipient complete Form W-9, Request for Taxpayer Identification Number and Certification; or Form W-9S, Request for Student’s or Borrower’s Taxpayer Identification Number and Certification, as appropriate. Form W-9 is required to be completed by recipients of certain types of payments (as provided in Regulations section 31.3406(d)-1). See the Instructions for the Requester of Form W-9 for more information on how to request a TIN.”

Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Filers (payers) of Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.”

Generally, a filer must keep copies of the information returns it filed with the IRS, or have the ability to reconstruct the data, for at least 3 years (4 years for Form 1099-C) from the due date of the returns, and must keep copies for 4 years if federal withholding, including backup withholding, was imposed. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Filers (payers) of Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“Generally, keep copies of information returns you filed with the IRS, or have the ability to reconstruct the data, for at least 3 years (4 years for Form 1099-C) from the due date of the returns. Keep copies of information returns for 4 years if federal withholding, including backup withholding, was imposed. For more information, see Pub. 5717.”

A payer in the trade or business of purchasing fish for resale must report total cash payments of $600 or more paid during the year to any person engaged in the trade or business of catching fish, must keep records showing the date and amount of each cash payment made during the year, and reports only the total amount paid for the year on Form 1099-MISC. (jurisdiction: United States (federal), entity_scope: Payers in the trade or business of purchasing fish for resale, accounting_basis: total cash payments made during the year, effective_from: December 2026 revision, used to file 2026 information in early 2027 and for subsequent years until superseded)

“If you are in the trade or business of purchasing fish for resale, you must report total cash payments of $600 or more paid during the year to any person who is engaged in the trade or business of catching fish. You are required to keep records showing the date and amount of each cash payment made during the year, but you must report only the total amount paid for the year on Form 1099-MISC.”

Not established from an authoritative source.

Tying each determination to the certification and the ledger data

See Where the recipient is a U.S. person (including a U.S. resident alien), the IRS suggests that the payer request the recipient complete Form W-9 or Form W-9S as appropriate, and Form W-9 is required to be completed by recipients of certain types of payments as provided in Regulations section 31.3406(d)-1.

See Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

See Generally, a filer must keep copies of the information returns it filed with the IRS, or have the ability to reconstruct the data, for at least 3 years (4 years for Form 1099-C) from the due date of the returns, and must keep copies for 4 years if federal withholding, including backup withholding, was imposed.

Among the requirements the instructions generally set for an electronic Form W-9 submission system is that the system be able to supply a hard copy of the electronic Form W-9 if the IRS requests it. (jurisdiction: United States — federal tax law (Internal Revenue Code); IRS instructions, entity_scope: Requesters of Form W-9 — persons required to file U.S. information returns (payors/withholding agents), conditions: requester operates an electronic Form W-9 submission system)

“Be able to supply a hard copy of the electronic Form W-9 if the IRS requests it; and”

Not established from an authoritative source.

When a determination genuinely cannot be settled

See A payer that does not have a Form W-9, an appropriate Form W-8, or other valid documentation, or that cannot allocate a payment to a specific payee, prior to payment, is required to use certain presumption rules to determine the payee’s status as a U.S. or foreign person and the payee’s classification as an individual, trust, estate, corporation, or partnership.

See A requester may rely on the payee's claim of exemption unless it has actual knowledge that the exempt payee code and/or the classification selected are not valid or that they are inconsistent with each other, in which case it may rely on the Form W-9 to obtain the payee's TIN but must treat the payee as non-exempt.

A withholding agent that cannot reliably associate a payment with valid documentation must apply certain presumption rules or it may be liable for tax, interest and penalties; if it complies with the presumption rules it is not liable for tax, interest and penalties even if the rate that should have applied based on the payee's actual status differs from the presumed rate. (jurisdiction: United States (U.S. federal tax law administered by the IRS), entity_scope: payments that cannot be reliably associated with valid documentation, conditions: stated in Publication 515, for use in 2026)

“If you cannot reliably associate a payment with valid documentation, you must apply certain presumption rules or you may be liable for tax, interest, and penalties. If you comply with the presumption rules, you are not liable for tax, interest, and penalties even if the rate of withholding that should have been applied based on the payee’s actual status is different from that presumed.”

Generally, a filer is not required to report payments smaller than the minimum described for a form, although the filer may prefer to file Copies A for all payments and the IRS encourages this. (jurisdiction: United States — federal information return reporting under the Internal Revenue Code, entity_scope: Filers (payers) of Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, effective_from: Tax year 2026 (the publication states it is “For use in preparing 2026 Returns”))

“Generally, you are not required to report payments smaller than the minimum described for a form; however, you may prefer, for economy and your own convenience, to file Copies A for all payments. The IRS encourages this.”

Not established from an authoritative source.