The IRS’s current guidelines include the following statement:
Do not use Form 1099-MISC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2. Other taxable scholarship or fellowship payments (to a degree or nondegree candidate) do not have to be reported by you to the IRS on any form.
Source: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf (accessed January 24, 2017)
Because fellows in this program are not being paid for teaching, research or other services rendered to CLIR, CLIR’s interpretation of the guidelines is that these fellowship grants are not to be considered as wages, and thus it is not necessary for CLIR to report these stipend payments to the IRS. Accordingly, CLIR will not report these funds or issue tax forms unless the IRS guidelines change.
However, CLIR staff are not qualified to provide tax advice and fellows are encouraged to review the tax regulations for themselves at the Internal Revenue Service’s website, www.irs.gov.