Sec. 6041 - How To Handle Your Employer & Clients
All persons engaged in a trade or business and making payment in the course of such trade or
business to another person, of rent, salaries, wages, premiums, annuities, compensations,
remunerations, emoluments, or other fixed or determinable gains, profits, and income (other
than payments to which section 6042(a)(1), 6044(a)(1), 6047(e), 6049(a), or 6050N(a)
applies, and other than payments with respect to which a statement is required under the
authority of section 6042(a)(2), 6044(a)(2), or 6045), or $600 or more in any taxable year,
or, in the case of such payments made by the United States, the officers or employees of the
United States having information as to such payments and required to make returns in regard
thereto by the regulations hereinafter provided for, shall render a true and accurate return to
the Secretary, under such regulations and in such form and manner and to such extent as may
be prescribed by the Secretary, setting forth the amount of such gains, profits, and income,
and the name and address of the recipient of such payment.
26 USC 6041
This code section is where the use of the Form 1099 originates (reporting payments to individuals NOT "covered" by Social Security). Carefully note that this reporting requirement DOES NOT REQUIRE a Social Security number, a TIN, or any other number from the individual. This section ONLY requires the NAME and ADDRESS of the recipient. So give your clients (and/or your employer) your name and address on a Statement of Citizenship (C.F.R. 1441-5 Claiming to be a Person Not Subject to Withholding), refuse to supply a social security number on a W-4 (voluntary), and tell them to report your earnings on a Form 1099 instead of on a Form W-2. Does that really sound so tough ?
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