How will the payments I receive from SoundExchange pursuant to an LOD be reported to the Internal Revenue Service (IRS) and other tax authorities?

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.