[Foundation-l] [ANNOUNCEMENT] Greenspan illustration project

Ray Saintonge saintonge at telus.net
Sat Nov 3 17:19:50 UTC 2007

George Herbert wrote:
> I think you may misunderstand.  The concern is that the WMF will now, for
> the first time that I know of (but I could be ignorant), be paying or
> purchasing something (good, or services) from members of the community, and
> not from a normal vendor or paying an internal employee.
> The WMF might be required, under some interpretations of tax law in the US
> and how the payments are structured, to get a US IRS tax form (form 1099
> probably) for each person it paid for an illustration.  Which is a lot of
> administrative and recordkeeping headache and requires things like a social
> security number to be provided, etc.
> If it's structured so that the foundation is buying the rights to an image,
> then that may be outside the contractor / pay for work structure enough to
> be safe.  But this is legal / accountant territory.
In most cases for domestic recipients form 1099-MISC depends on minimum 
payments of $600 in a year.  Form 1042-S for foreign recipients is 
applicable on income "subject to withholding", and that in turn depends 
on what is said in the relevant bilateral treaty.


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