Is anyone familiar with circumstances in which payments of monies
received on behalf of another are reportable other income payments in
box 3 of Form 1099-MISC off the top of his head? Reg 1.6041-1(e)(1) does
not appear to apply.

Reg 1.6041-1
(e) Payment made on behalf of another person

(1) In general. A person that
makes a payment in the course of its
trade or business on behalf of another
person is the payor that must make a
return of information under this section
with respect to that payment if
the payment is described in paragraph
(a) of this section and, under all the
facts and circumstances, that person

(i) Performs management or oversight
functions in connection with the
payment (this would exclude, for
example, a person who performs mere
administrative or ministerial functions
such as writing checks at another's
direction); or

(ii) Has a significant economic interest
in the payment (i.e., an economic
interest that would be compromised if
the payment were not made, such as by
creation of a mechanic's lien on property
to which the payment relates, or a
loss of collateral).

The examples in the regulation are about third parties paying
contractors and subcontractors paying for work that has been verified to
have been performed, or a mortgage holder ensuring that work was
performed to restore damaged property to maintain his investment.

These are dues payments received from members by one organization on
behalf of another. The dues are contributions for which no goods nor
services are received. The organization is not a charity. There is a
national organization, incorporated, and regional chapters, some of
which are unincorporated.

Typically, a member writes one check for dues either to the national or
the chapter. Monies received as dues payments are apportioned between
the national and chapter.

The dues payments themselves are not in the course of trade or business
and aren't reportable in the first place, so I don't believe they are reportable by the dispersing organization.

The national is incorporated. Not all chapters are incorporated. If
it's reportable and I'm wrong about this, there may be an exemption
from reporting on behalf to payments to the incorporated chapters. The reporting threshold may be $600 or more.

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