### Question
How does the law define third party settlement organization?


### Answer
Under *26 U.S.C. § 6050W*, **third party settlement organization** is defined as:

> the central organization which has the contractual obligation to make payment to participating payees of third party network transactions

#### Citation:
  - *26 U.S.C. § 6050W*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter A-Returns and Records > PART III-INFORMATION RETURNS > Subpart B-Information Concerning Transactions With Other Persons**

