Clarification: Reporting Non-Employee Compensation & Other Miscellaneous Income Received in the Same Year

ITG Resources

ITG Home Page

ITG Education & Training

Educational Products

ITG Tax Kit

ITG Frequently Asked
Questions

Tax Calendar

Forms & Pubs

Other Useful Links

Contacting ITG

Find Your ITG Specialist

Contact My Local Office

Taxpayer Advocate

Yesterday we sent a message about reporting non-employee compensation and gaming per capita distributions received in the same year. The message below expands on yesterday’s message and corrects an erroneous Internal Revenue Code reference. Please disregard yesterday’s message and refer to the following message instead.

The Protecting Americans from Tax Hikes (PATH) Act will accelerate the Form W-2 filing deadline for employers to January 31. The new January 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors. However, the filing deadlines for Forms 1099-MISC reporting other than nonemployee compensation remain unchanged (February 28 of the following year for paper form filing or March 31 of the following year for electronic filing).

Therefore, a payor could file two Forms 1099-MISC with different due dates if an individual received both non-employee compensation and other reportable payments from that payor in the same tax year.

For example: In a situation where tribal members have received both non-employee compensation and  per capita distributions of gaming revenues during the same year, a tribe may file two Forms 1099-MISC with different due dates:

1. One for non-employee compensation with a due date of January 31 of the following year; and
2. One for per capita distributions of gaming revenues, with a due date of February 28 of the following year (paper form filing) or March 31 of the following year (electronic filing). The interaction of section 6071(b) and section 3402(r) does not result in a January 31 due date for the filing of a Form 1099-MISC for per capita distributions of gaming revenue subject to withholding, since such payments are not non-employee compensation.

In certain circumstances, however, if a tribe does file two forms, include a different account number on each form. For more information, see 2016 General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G); Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G Tax Year 2016; Instructions for Form 1099-MISC.

Back to Top

This message was distributed automatically from the mailing list Indian Tribal Governments News. Please Do Not Reply To This Message.