[Code of Federal Regulations]
[Title 48, Volume 3]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR204.904]

[Page 26]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                    CHAPTER 2--DEPARTMENT OF DEFENSE
 
PART 204--ADMINISTRATIVE MATTERS--Table of Contents
 
        Subpart 204.9--Taxpayer Identification Number Information
 
Sec. 204.904  Reporting payment information to the IRS.

    (1) 26 U.S.C. 6041 and 6041A and 26 CFR 1.6041 require Government 
payors to report to the IRS, on IRS Form 1099, payments of an annual 
cumulative value of $600 or more provided to a contractor, except 
payments for--

    (i) Supplies, unless the supplies are incidental to the furnishing 
of services;

    (ii) Telegram, telephone, freight, storage, or similar charges;

    (iii) Income that the payor must report on IRS Form W-2 (e.g., 
payments to employees or payments under contracts for personal 
services);
    (iv) Any contract with a Federal agency;

    (v) Any contract with a State, the District of Columbia, or a 
possession of the United States; or a political subdivision, agency, or 
instrumentality of any of the foregoing;

    (vi) Any contract with an organization exempted from taxation by 26 
U.S.C. 501(a). Such organizations may include charitable, social 
welfare, labor, agricultural, veterans', and political organizations; 
business leagues; social clubs; fraternal societies; and employees' 
associations. Contracting officers may obtain additional information to 
assist in determining an organization's tax-exempt status via the 
Internet at http://www.irs.ustreas.gov/prod/bus--info/eo/eo-types.html;

    (vii) Any contract with a foreign government or a political 
subdivision of a foreign government;

    (viii) Any contract with an international organization listed in 22 
U.S.C. 288;

    (ix) Any classified contract excepted by 26 U.S.C. 6050M. As used in 
this section only, a contract is classified if--

    (A) DoD designates the existence of the contract or the contract 
subject matter as classified (i.e., the contract requires a specific 
degree of protection against unauthorized disclosure for reasons of 
national security); or

    (B) The head of the agency determines that filing IRS Form 1099 
would interfere with the effective conduct of a confidential law 
enforcement or foreign intelligence activity; or

    (x) Such other services as the IRS may specify in regulations.

    (2) Unless an exception in paragraph (1) of this section applies, 
the contracting officer must provide, as the last page of the copy of 
the contract sent to the payment office--

    (i) A statement that the contractor is providing services subject to 
Form 1099 payment information reporting to the IRS, as required by 26 
U.S.C. 6041 and 6041A; and

    (ii) The contractor's Taxpayer Identification Number and type of 
organization, if the contract does not include the clause at 252.204-
7004, Required Central Contractor Registration.