Par. 3. Section 1.6041-1 is amended by: 1. Revising the section heading, paragraphs (a)(1)(i)(A) and (B), and paragraph (a)(1)(iii). 2. In paragraph (a)(1)(v), designating Example 1 and 2 as paragraphs (a)(1)(v)(A) and (B). 3. Revising the first sentence of newly designated paragraph (a)(1)(v)(A). 4. Revising newly designated paragraph (a)(1)(v)(B). 5. Adding paragraph (a)(3). 6. Revising paragraph (j). The revisions and addition read as follows:
(a) * * *
(1) * * *
(i) * * *
(A) Salaries, wages, commissions, fees, and other forms of compensation for services rendered that equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h).
(B) Interest (including original issue discount), rents, royalties, annuities, pensions, and other gains, profits, and income that equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h).
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(iii) Information returns required under section 6045(f) on or after January 1, 2007. For payments made on or after January 1, 2007, to which section 6045(f) (relating to payments to attorneys) applies, the following rules apply. Notwithstanding the provisions of paragraph (a)(1)(ii) of this section, payments to an attorney that are described in paragraph (a)(1)(i) of this section but which otherwise would be reportable under section 6045(f) are reported under section 6041 and this section and not section 6045(f) of the Code. This exception applies only if the payments are reportable with respect to the same payee under both sections 6041 and 6045(f). Thus, a person who, in the course of a trade or business, pays taxable damages in an amount that equals or exceeds the dollar threshold in effect for the calendar year under section 6041(a) and (h) to a claimant by paying that amount to the claimant's attorney is required to file an information return under section 6041 with respect to the claimant, as well as another information return under section 6045(f) with respect to the claimant's attorney. For provisions relating to information reporting for payments to attorneys, see § 1.6045-5.
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(v) * * *
(A) * * * In 2026, Restaurant owner A, in the course of business, pays $2,500 of fixed or determinable income to B, a repairman, by credit card. * * *
(B) Example 2. In 2026, Restaurant owner A, in the course of business, pays $2,500 of fixed or determinable income to B, a repairman, through a third party payment network. B is one of a substantial number of persons who have established accounts with Y, a third party settlement organization that provides standards and mechanisms for settling the transactions and guarantees payments to those persons for goods or services purchased through the network. 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 the transaction is a third party network transaction that is subject to reporting under section 6050W. Solely for purposes of determining whether A is required to report under section 6041, the de minimis threshold for third party network transactions in § 1.6050W-1(c)(4) is disregarded.
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(3) Dollar threshold in effect for the calendar year. For payments made before January 1, 2026, the dollar threshold in effect for the calendar year under section 6041(a) is $600. For payments made after December 31, 2025, and before January 1, 2027, the dollar threshold in effect for the calendar year under section 6041(a) is $2,000. For payments made after December 31, 2026, the dollar threshold in effect for the calendar year under section 6041(a) is $2,000 plus the inflation adjustment provided in section 6041(h).
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(j) Applicability date. This section applies to payments made on or after January 1, 2026.