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Treasury Regulations (26 C.F.R.)

26 CFR § 31.3406(b)(3)-4

Reportable payments of royalties.

Official textecfr.govlast amended

# (a) Royalty payments subject to backup withholding.

A payment of a kind, and to a payee, that is required to be reported under section 6050N (relating to information reporting of payments of royalties) is a reportable payment for purposes of section 3406. See § 31.6051-4 for the requirement to furnish a statement to the payee if tax is withheld under section 3406.

# (b) Amount subject to backup withholding.

In general, the amount described in paragraph (a) of this section that is subject to withholding under section 3406 is the amount subject to reporting under section 6050N. However, if the reportable payment is for an oil or gas interest, the amount subject to withholding is the net amount the payee receives (i.e., the gross proceeds less production-related taxes such as state severance taxes).

[T.D. 8637, 60 FR 66119, Dec. 21, 1995]

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In this part (40 sections)
  1. 31.3402(q)-1 · Extension of withholding to certain gambling winnings.
  2. 31.3402(r)-1 · Withholding on distributions of Indian gaming profits to…
  3. 31.3403-1 · Liability for tax.
  4. 31.3404-1 · Return and payment by governmental employer.
  5. 31.3405(a)-1 · Questions and answers relating to Federal income tax…
  6. 31.3405(c)-1 · Withholding on eligible rollover distributions;…
  7. 31.3405(e)-1 · Questions and answers relating to withholding on…
  8. 31.3406-0 · Outline of the backup withholding regulations.
  9. 31.3406(a)-1 · Backup withholding requirement on reportable payments.
  10. 31.3406(a)-2 · Definition of payors obligated to backup withhold.
  11. 31.3406(a)-3 · Scope and extent of accounts subject to backup…
  12. 31.3406(a)-4 · Time when payments are considered to be paid and subject…
  13. 31.3406(b)(2)-1 · Reportable interest payment.
  14. 31.3406(b)(2)-2 · Original issue discount.
  15. 31.3406(b)(2)-3 · Window transactions.
  16. 31.3406(b)(2)-4 · Reportable dividend payment.
  17. 31.3406(b)(2)-5 · Reportable patronage dividend payment.
  18. 31.3406(b)(3)-1 · Reportable payments of rents, commissions,…
  19. 31.3406(b)(3)-2 · Reportable barter exchanges and gross proceeds of…
  20. 31.3406(b)(3)-3 · Reportable payments by certain fishing boat operators.
  21. 31.3406(b)(3)-4 · Reportable payments of royalties.
  22. 31.3406(b)(3)-5 · Reportable payments of payment card and third party…
  23. 31.3406(b)(4)-1 · Exemption for certain minimal payments.
  24. 31.3406(c)-1 · Notified payee underreporting of reportable interest or…
  25. 31.3406(d)-1 · Manner required for furnishing a taxpayer identification…
  26. 31.3406(d)-2 · Payee certification failure.
  27. 31.3406(d)-3 · Special 30-day rules for certain reportable payments.
  28. 31.3406(d)-4 · Special rules for readily tradable instruments acquired…
  29. 31.3406(d)-5 · Backup withholding when the Service or a broker notifies…
  30. 31.3406(e)-1 · Period during which backup withholding is required.
  31. 31.3406(f)-1 · Confidentiality of information.
  32. 31.3406(g)-1 · Exception for payments to certain payees and certain…
  33. 31.3406(g)-2 · Exception for reportable payment for which withholding…
  34. 31.3406(g)-3 · Exemption while payee is waiting for a taxpayer…
  35. 31.3406(h)-1 · Definitions.
  36. 31.3406(h)-2 · Special rules.
  37. 31.3406(h)-3 · Certificates.
  38. 31.3406(i)-1 · Effective date.
  39. 31.3406(j)-1 · Taxpayer Identification Number (TIN) matching program.
  40. 31.3501(a)-1T · Question and answer relating to the time employers must…
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