# Prop. Treas. Reg. § 1.6041-2: Return of information as to payments to employees.

Proposed regulation, not in force. REG-113229-25, 91 FR 20599, published 2026-04-17 <https://www.federalregister.gov/documents/2026/04/17/2026-07519/increase-in-threshold-for-requiring-information-reporting-with-respect-to-certain-payees-extension>. Interprets 26 U.S.C. § 6041.

Par. 4. Section 1.6041-2 is amended by: 1. Adding a heading to paragraph (a). 2. Revising the third and fourth sentences of paragraph (a)(1). 3. Revising paragraphs (b)(1)(ii) and (d). The addition and revisions read as follows:

(a) Reporting payments to employees —(1) * * * All other payments of compensation, including the cash value of payments made in any medium other than cash, to an employee by the employee's employer in the course of the trade or business of the employer must also be reported on Form W-2 if the total of such payments and the amount of the employee's wages (as defined in section 3401), if any, required to be reported on Form W-2 equals or exceeds the dollar threshold in effect for the calendar year under section 6041(a) and (h). For example, in 2026, when the threshold in effect under section 6041(a) is $2,000, if a payment of $2,500 is made to an employee and $1,500 thereof represents wages subject to withholding under section 3402 and the remaining $1,000 represents compensation not subject to withholding, such wages and compensation must both be reported on Form W-2. * * *

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(b) * * *

(1) * * *

(ii) Described in section 72(m)(3)(B), shall be reported on Forms 1096 and 1099 to the extent such amounts are includible in the gross income of such beneficiary if the amounts so includible equal or exceed the dollar threshold in effect for the calendar year under section 6041(a) and (h). In addition, every trust described in section 501(c)(17) which makes one or more payments (including separation and sick and accident benefits) in an amount that equals or exceeds the dollar threshold in effect for the calendar year under section 6041(a) and (h) to an individual must file an annual information return on Form 1096, accompanied by a statement on Form 1099, for each such individual. Payments made by an employer or a person other than the trustee of the trust should not be considered in determining whether the amount paid by the trustee equals or exceeds the dollar threshold in effect for the calendar year under section 6041(a) and (h).

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(d) Applicability date. This section applies to returns filed with respect to payments made on or after January 1, 2026.