Reportable payment, etc.

For purposes of this section—

(1) Reportable payment The term “reportable payment” means— (A) any reportable interest or dividend payment, and (B) any other reportable payment.

(2) Reportable interest or dividend payment (A) In general The term “reportable interest or dividend payment” means any payment of a kind, and to a payee, required to be shown on a return required under— (i) section 6049(a) (relating to payments of interest), (ii) section 6042(a) (relating to payments of dividends), or (iii) section 6044 (relating to payments of patronage dividends) but only to the extent such payment is in money. (B) Special rule for patronage dividends For purposes of subparagraphs (C) and (D) of subsection (a)(1), the term “reportable interest or dividend payment” shall not include any payment to which section 6044 (relating to patronage dividends) applies unless 50 percent or more of such payment is in money.

(3) Other reportable payment The term “other reportable payment” means any payment of a kind, and to a payee, required to be shown on a return required under— (A) section 6041 (relating to certain information at source), (B) section 6041A(a) (relating to payments of remuneration for services), (C) section 6045 (relating to returns of brokers), (D) section 6050A (relating to reporting requirements of certain fishing boat operators), but only to the extent such payment is in money and represents a share of the proceeds of the catch, (E) section 6050N (relating to payments of royalties), or (F) section 6050W (relating to returns relating to payments made in settlement of payment card transactions).

(4) Whether payment is of reportable kind determined without regard to minimum amount The determination of whether any payment is of a kind required to be shown on a return described in paragraph (2) or (3) shall be made without regard to any minimum amount which must be paid before a return is required.

(5) Exception for certain small payments To the extent provided in regulations, the term “reportable payment” shall not include any payment which— (A) does not exceed $10, and (B) if determined for a 1-year period, would not exceed $10.

(6) Other reportable payments include payments described in section 6041(a) or 6041A(a) only where in excess of threshold Any payment of a kind required to be shown on a return required under section 6041(a) or 6041A(a) which is made during any calendar year shall be treated as a reportable payment only if— (A) the aggregate amount of such payment and all previous payments described in such sections by the payor to the payee during such calendar year equals or exceeds the dollar amount in effect for such calendar year under section 6041(a), (B) the payor was required under section 6041(a) or 6041A(a) to file a return for the preceding calendar year with respect to payments to the payee, or (C) during the preceding calendar year, the payor made reportable payments to the payee with respect to which amounts were required to be deducted and withheld under subsection (a).

(7) Exception for certain window payments of interest, etc. For purposes of subparagraphs (C) and (D) of subsection (a)(1), the term “reportable interest or dividend payment” shall not include any payment— (A) in redemption of a coupon on a bearer instrument or in redemption of a United States savings bond, or (B) to the extent provided in regulations, of interest on instruments similar to those described in subparagraph (A). The preceding sentence shall not apply for purposes of determining whether there is payee underreporting described in subsection (c).

(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year (A) In general Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if— (i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and (ii) the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment. (B) Exception if third party network transactions made in prior year were reportable Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.