A stipend is a "fixed and regular payment," such as a salary for services rendered. Stipends paid for services rendered are reportable on a W-2 Form if the individual is considered an employee. Normal withholding should occur under these circumstances. If services are provided in excess of $600 for a calendar year by a non-employee, then report the amounts paid on a 1099-MISC Form.
Stipends paid to students and athletes for expenses such as room and board should be reported by the recipient on a federal tax return as taxable income. There are no IRS reporting requirements for stipends paid under these conditions.