SCHOLARSHIPS, STIPENDS, FELLOWSHIPS, HONORARIA: ESSENTIAL 1099 AND 1042-S REPORTING AND TAX WITHHOLDING COMPLIANCE
Does your institution make payments through Accounts Payable to students, instructors, researchers and academic visitors? Internal procedures might identify a payment as a stipend or honorarium, fellowship, grant or scholarship – but what these have in common in tax compliance is a set of specific regulatory requirements which will determine whether payments are subject to tax withholding and the filing of a Form 1099 or 1042-S to the IRS.