As of January 1, 2020, both Featured Artists and Creative Participants will be subject to backup withholding unless they have provided SoundExchange with a Taxpayer Identification Number (TIN). SoundExchange will handle the withholding and reporting of payments made to Creative Participants directly with the IRS, and the artist will no longer need to 1099/1042 the Creative Participants themselves.
Prior to January 1, 2020, Featured Artists were required to report payments made to Creative Participants to the IRS and to provide a Form 1099 or 1042 to Creative Participants each year as needed.
SoundExchange does not provide any tax advice, and no information contained herein should be construed as tax advice.