Sec. 6 Filing Requirements and Due Dates

.01 Filing Requirements

The guidance in this publication applies to federal executive agencies, which include any executive agency (as defined in 5 U.S.C. § 105) other than the Government Accountability Office; any military department (as defined in 5 U.S.C. § 102); and the United States Postal Service and the Postal Rate Commission with respect to reporting their contracts and contract amendments where the net value of the contract exceeds $25,000.00. Federal executive agencies generally must report contracts in excess of $25,000.00 to the Federal Procurement Data Center (FPDC) and are permitted to make an election to have the FPDC file with the IRS on their behalf. To make this election, the head of a federal executive agency, or their delegate, must attach a signed statement to its quarterly filings stating:

• The Director of the FPDC, or their delegate, is authorized to file the required returns on behalf of the agency for contracts for that quarter in accordance with an election under 26 CFR, section 1.6050M-1(d)(5).

• Under the penalties of perjury, the official has examined the information submitted by the agency to the FPDC for use in creating returns to be filed with the IRS and the official certifies the information, to the best of their knowledge and belief, is a compilation of agency records maintained in the normal course of business for the purpose of making true, correct, and complete returns as required by 26 CFR, section 1.6050M-1.

If a federal executive agency elects to have the FPDC create returns on its behalf, the FPDC shall mail or fax a copy of that agency’s signed statement, making the election, to the IRS for that agency for that quarter. Electronic reporting replaces the need to submit paper documents. Submitting identical paper documents will result in duplicate filing.

If a contract is increased by more than $25,000.00 under one action, the action should be treated as a new contract and reported to the IRS for the calendar quarter in which the increase occurs. This could occur through the exercise of an option contained in a basic or initial contract or under any other rule of contract law, expressed or implied, when the amount of money or other property obligated under the contract is more than $25,000.00.

Special rules to filing requirements are as follows:

• If a subcontract is entered into by the Small Business Administration (SBA) under a prime contract between SBA and a procuring federal agency pursuant to section 8(a) of the Small Business Act, the procuring agency, not the SBA, will be required to file Form 8596, Information Returns for Federal Contracts, and Form 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts..

• A Federal Supply Schedule Contract or an Automated Data Processing Schedule Contract entered into by the General Services Administration (GSA), or a scheduled contract entered into by the Department of Veterans Affairs (VA) on behalf of one or more federal executive agencies, is not to be reported by the GSA or VA at the time of execution. When a federal executive agency, including the GSA or the VA, places an order under a schedule contract, the federal executive agency must file Forms 8596 and 8596-A.

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The following are not required to be reported under section 26 CFR, section 1.6050M-1:

• Any contract action of $25,000.00 or less.

• Any contract which provides that all amounts payable under the contract by a federal executive agency will be paid on or before the 120th day following the date of the contract action and for which it is reasonable to expect that all amounts will be so paid.

• A license granted by a federal executive agency.

• An obligation of a contractor (other than a federal executive agency) to a subcontractor.

• Debt instruments of the U.S. Government or a federal agency, such as Treasury Notes, Treasury Bonds, Treasury Bills, U.S. Savings Bonds, or similar instruments.

• An obligation of a federal executive agency to lend money, lease property to someone, or sell property.

• A blanket purchase agreement, however, when an order is placed under a blanket purchase agreement, a contract then exists and Form 8596, Information Returns for Federal Contracts, and Form 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts, must be filed.

• Any contract with a contractor who, in making the agreement, is acting in his or her capacity as an employee of a federal executive agency (for example, any contract of employment under which the employee is paid wages subject to federal income tax withholding).

• Any contract between a federal executive agency and another federal governmental unit or any subsidiary agency.

• Any contract with a foreign government or agency or any subsidiary agency.

• Any contract with a state or local government or agency or any subsidiary agency.

• Any contract with a person who is not required to have a taxpayer identification number (TIN), such as a nonresident alien, foreign corporation, or foreign partnership, any of which does not have income effectively connected with the conduct of a trade or business in the United States and does not have an office or place of business as a fiscal or paying agent in the United States.

• Certain confidential or classified contracts that meet the requirements of section 6050M(e).

• Any contract that provides that all payments made after the 120th day after the date of the contract action will be made by someone other than a federal executive agency or an agent of such an agency. For example, a contract under which the contractor will collect amounts owed to a federal executive agency from the agency’s debtor and will remit to the federal executive agency, the money collected less an amount for the contractor’s consideration under the contract.

• Contracts entered into using non-appropriated funds

If a federal executive agency files 10 or more reportable contracts during a one-year period, the agency must file Form 8596 electronically for each quarter of that one-year period. If they have reasonable expectations to enter into fewer than 10 reportable contracts during a one-year period, the agency may file paper Forms 8596 and Forms 8596-A. For additional information on paper filing, refer to the instructions on Form 8596 and Form 8596-A.

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.02 Due Dates

Form 8596 is filed on a quarterly basis for the calendar year as follows:

The Director of the FPDC, or their delegate, must submit the required return quarterly to the IRS on or before the earlier date of:

• 45 days following the date that the contract information is required to be submitted to the FPDC

or

• 90 days following the end of the calendar quarter for which the election is made, except when the

calendar quarter ends September 30: then 105 days following the end of that quarter.

If any due date falls on a Saturday, Sunday or legal holiday, the forms may be timely filed on the next business day.