Each payment settlement entity shall make a return for each calendar year setting forth-
Such return shall be made at such time and in such form and manner as the Secretary may require by regulations.
For purposes of this section-
The term "payment settlement entity" means-
The term "merchant acquiring entity" means the bank or other organization which has the contractual obligation to make payment to participating payees in settlement of payment card transactions.
The term "third party settlement organization" means the central organization which has the contractual obligation to make payment to participating payees of third party network transactions.
For purposes of this section-
In any case where reportable payment transactions of more than one participating payee are settled through an intermediary-
In any case where an electronic payment facilitator or other third party makes payments in settlement of reportable payment transactions on behalf of the payment settlement entity, the return under subsection (a) shall be made by such electronic payment facilitator or other third party in lieu of the payment settlement entity.
For purposes of this section-
The term "reportable payment transaction" means any payment card transaction and any third party network transaction.
The term "payment card transaction" means any transaction in which a payment card is accepted as payment.
The term "third party network transaction" means any transaction described in subsection (d)(3)(A)(iii) which is settled through a third party payment network.
For purposes of this section-
The term "participating payee" means-
Except as provided by the Secretary in regulations or other guidance, such term shall not include any person with a foreign address. Notwithstanding the preceding sentence, a person with only a foreign address shall not be treated as a participating payee with respect to any payment settlement entity solely because such person receives payments from such payment settlement entity in dollars.
The term "person" includes any governmental unit (and any agency or instrumentality thereof).
The term "payment card" means any card which is issued pursuant to an agreement or arrangement which provides for-
The acceptance as payment of any account number or other indicia associated with a payment card shall be treated for purposes of this section in the same manner as accepting such payment card as payment.
The term "third party payment network" means any agreement or arrangement-
Such term shall not include any agreement or arrangement which provides for the issuance of payment cards.
A third party settlement organization shall not be required to report any information under subsection (a) with respect to third party network transactions of any participating payee if the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions does not exceed $600.
Every person required to make a return under subsection (a) shall furnish to each person with respect to whom such a return is required a written statement showing-
The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. Such statement may be furnished electronically, and if so, the email address of the person required to make such return may be shown in lieu of the phone number.
The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out this section, including rules to prevent the reporting of the same transaction more than once.
26 U.S.C. § 6050W
EDITORIAL NOTES
AMENDMENTS2021-Subsec. (c)(3). Pub. L. 117-2, §9674(b), inserted "described in subsection (d)(3)(A)(iii)" after "any transaction".Subsec. (e). Pub. L. 117-2, §9674(a), amended subsec. (e) generally. Prior to amendment, subsec. (e) related to an exception for de minimis payments by third party settlement organizations.2018-Subsec. (d)(1)(B). Pub. L. 115-123 inserted at end "Notwithstanding the preceding sentence, a person with only a foreign address shall not be treated as a participating payee with respect to any payment settlement entity solely because such person receives payments from such payment settlement entity in dollars."
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117-2, §9674(c), Mar. 11, 2021, 135 Stat. 185, provided that:"(1) IN GENERAL.-The amendment made by subsection (a) [amending this section] shall apply to returns for calendar years beginning after December 31, 2021."(2) CLARIFICATION.-The amendment made by subsection (b) [amending this section] shall apply to transactions after the date of the enactment of this Act [Mar. 11, 2021]."
EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115-123, div. D, title II, §41117(b), Feb. 9, 2018, 132 Stat. 162, provided that: "The amendment made by this section [amending this section] shall apply to returns for calendar years beginning after December 31, 2017."
EFFECTIVE DATESection applicable to returns for calendar years beginning after Dec. 31, 2010, with exception for purposes of carrying out any TIN matching program, see section 3091(e) of Pub. L. 110-289, set out as an Effective Date of 2008 Amendment note under section 3406 of this title.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- TIN
- The term "TIN" means the identifying number assigned to a person under section 6109.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- transaction
- The term "transaction" includes a series of transactions.