Proposed Rule2026-07519
Increase in Threshold for Requiring Information Reporting With Respect to Certain Payees; Extension and Modification of Limitation on Wagering Losses
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 17, 2026
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains proposed amendments relating to the dollar thresholds in regulations governing information reporting for payments made in the course of a trade or business and the corresponding backup withholding regulations. This document also contains proposed amendments to the regulations governing wagering losses. The proposed regulations reflect recent changes to the statutory law. These changes will affect persons who make payments in the course of their trade or business and those persons claiming a deduction for wagering losses.
Full Text
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[Federal Register Volume 91, Number 74 (Friday, April 17, 2026)]
[Proposed Rules]
[Pages 20599-20607]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07519]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 31
[REG-113229-25]
RIN 1545-BR73
Increase in Threshold for Requiring Information Reporting With
Respect to Certain Payees; Extension and Modification of Limitation on
Wagering Losses
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed amendments relating to the
dollar thresholds in regulations governing information reporting for
payments made in the course of a trade or business and the
corresponding backup withholding regulations. This document also
contains proposed amendments to the regulations governing wagering
losses. The proposed regulations reflect recent changes to the
statutory law. These changes will affect persons who make payments in
the course of their trade or business and those persons claiming a
deduction for wagering losses.
DATES: Electronic or written comments and requests for a public hearing
must be received by June 16, 2026.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (indicate IRS and
REG-113229-25) by following the online instructions for submitting
comments. As required by 5 U.S.C. 553(b)(4), a plain language summary
of the proposed rule is also available on the Federal eRulemaking
Portal. Requests for a public hearing must be submitted as prescribed
in the ``Comments and Requests for a Public Hearing'' section. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. The Department of the Treasury (Treasury Department) and
the IRS will publish for public availability any comment submitted to
the IRS's public docket. Send paper submissions to: CC:PA:01:PR (REG-
113229-25), Room 5503, Internal Revenue Service, P.O. Box 7604, Ben
Franklin Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
William Prater at (202) 317-6845 (not toll-free number); concerning
submissions of comments or requests for a hearing, the Publications and
Regulations Section at (202) 317-6901 (not toll-free number) or by
email at <a href="/cdn-cgi/l/email-protection#f18184939d989299949083989f9682b1988382df969e87"><span class="__cf_email__" data-cfemail="f8888d9a94919b909d998a91969f8bb8918a8bd69f978e">[email protected]</span></a> (preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed amendments to the Income Tax
Regulations (26 CFR part 1) under sections 165, 6041, and 6041A of the
Internal Revenue Code (Code) and the Employment Taxes and Collection of
Income Tax at Source Regulations (26 CFR part 31) under section 3406 of
the Code. The proposed regulations are issued under the authority of
sections 6041(a) and 6041A(a), which provide the Secretary of the
Treasury or the Secretary's delegate (Secretary) with authority to
prescribe regulations to carry out sections 6041 and 6041A. The
proposed regulations are also issued under the authority conferred by
section 3406 and 3406(i), which provides the Secretary with authority
to prescribe such regulations as may be necessary or appropriate to
carry out the purposes of section 3406.
Additionally, these proposed regulations are issued pursuant to
section 7805(a) of the Code, which authorizes the Secretary to
``prescribe all needful rules and regulations for the enforcement of
[the Code], including all rules and regulations as may be
[[Page 20600]]
necessary by reason of any alteration of law in relation to internal
revenue.''
Background
This document contains proposed amendments to regulations impacted
by amendments to the Code made by sections 70114 and 70433 of Public
Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One,
Big, Beautiful Bill Act (OBBBA).
I. Section 165
Section 165(a) provides an itemized deduction for losses sustained
during the taxable year that are not otherwise compensated for by
insurance or otherwise. Section 165(d) limits the deduction available
for losses from wagering transactions, including any deduction
otherwise allowable that is incurred in carrying on wagering
transactions.
Prior to the changes made by the OBBBA, section 165(d) limited
losses from wagering transactions to the extent of the gains from such
transactions. Current Sec. 1.165-10 restates this limitation and
provides a rule for the treatment of wagering losses on a joint return.
OBBBA section 70114(a) amended section 165(d) to limit this
deduction to 90 percent of the amount of wagering losses during a
taxable year and only to the extent of gains from wagering transactions
during a taxable year.
II. Section 6041
Section 6041(a) requires persons engaged in a trade or business to
file information returns reporting payments of fixed or determinable
gains, profits, and income equal to, or in excess of, a particular
dollar threshold made to another person in the course of that trade or
business. Prior to the enactment of the OBBBA, this dollar threshold
was $600. OBBBA section 70433(a) increased the $600 threshold in
section 6041 to a base threshold of $2,000 for payments made after
December 31, 2025. Additionally, OBBBA section 70433(b) added section
6041(h), which provides that, for calendar years after 2026, this base
threshold will be indexed to inflation. Lastly, OBBBA section
70433(e)(1) and (2) amended section 6041 by amending the section
heading from ``$600 or More'' to ``Exceeding Threshold'' and changing
the phrase ``taxable year'' to ``calendar year.'' Pursuant to OBBBA
section 70433(f), these changes are effective for payments made after
December 31, 2025.
Several existing regulations promulgated under section 6041
reference the prior $600 threshold amount in their text. However, Sec.
1.6041-10, which was published in the Federal Register (TD 9807, 81 FR
96374) on December 30, 2016, contains a $1,200 reporting threshold for
winnings from bingo and slot machine play and a $1,500 reporting
threshold for winnings from keno.
III. Section 6041A
Section 6041A(a) requires persons engaged in a trade or business to
file information returns reporting payments of remuneration for
services made in the course of that trade or business that equal or
exceed a dollar threshold. Prior to the enactment of the OBBBA, this
dollar threshold was $600. OBBBA section 70433(c) amended the $600
threshold in section 6041A(a)(2) to cross-reference ``the dollar amount
in effect for such calendar year under section 6041(a).'' Pursuant to
OBBBA section 70433(f), this change is effective for payments made
after December 31, 2025.
IV. Section 3406
Section 3406(a)(1) requires backup withholding for reportable
payments if certain conditions are met. Sections 3406(b)(1)(B),
(b)(3)(A), and (b)(3)(B) provide that payments required to be shown on
a return under sections 6041 and 6041A are reportable payments. Section
3406(b)(4) provides that, generally, whether a payment is reportable is
determined without regard to the minimum amount that must be paid
before a return is required. However, pursuant to section 3406(b)(6)(A)
payments described in sections 6041 and 6041A were only treated as
reportable payments for backup withholding if the aggregate amount of
payments to a payee in the calendar year equaled or exceeded $600.
OBBBA section 70433(d)(1) amended the $600 threshold in section
3406(b)(6)(A) to cross reference ``the dollar amount in effect for such
calendar year under section 6041(a).'' In addition, OBBBA section
70433(d)(2) amended the reference to ``$600 or More'' in the heading of
section 3406(b)(6) to say ``Only Where in Excess of Threshold.'' These
changes are effective for payments made after December 31, 2025.
Explanation of Provisions
I. Limitation on Deduction for Wagering Losses
Following the enactment of OBBBA section 70114(a), the first
sentence of Sec. 1.165-10, providing that losses from wagering
transactions are limited to the extent of gains from such transactions,
no longer accurately describes the limitations on wagering losses in
section 165(d). The proposed regulations would amend this sentence to
limit the deduction to 90 percent of the amount of wagering losses
during a taxable year and only to the extent of gains from wagering
transactions during a taxable year. The proposed regulations would also
make corresponding changes to the treatment of combined losses of
spouses from wagering transactions to reflect the changes made by the
OBBBA.
II. Thresholds for Payments Reported Under Sections 6041 and 6041A
The proposed regulations would also update the regulations under
sections 6041, 6041A, and 3406 to change the references to the pre-
OBBBA $600 threshold. Consistent with the wording of the OBBBA, these
references (specifically, in Sec. Sec. 1.6041-1, 1.6041-2, 1.6041-7,
1.6041A-1, 31.3406(b)(3)-1, and 31.3406(g)-2) would be replaced with a
reference to an amount equaling or exceeding the dollar threshold in
effect for the calendar year under section 6041(a) and (h). The
references in the proposed regulations have non-substantive variations
in the wording, for readability.
Proposed Sec. 1.6041-1(a)(3) would define the dollar amount in
effect for the calendar year under section 6041(a) as $2,000 for
calendar year 2026, adjusted for inflation in subsequent calendar years
as provided in section 6041(h). Proposed Sec. 1.6041-1(a)(1)(iv) also
contains non-substantive revisions to improve readability.
Because the dollar thresholds for reporting winnings from bingo,
keno, and slot machine play provided in current Sec. 1.6041-
10(b)(2)(i) are below the threshold established in the OBBBA, the
proposed regulations would update those thresholds to match the new
statutory threshold in section 6041(a) as revised by Congress.
Accordingly, the proposed regulations would modify Sec. 1.6041-10 to
provide that the threshold for reporting payments of winnings from
bingo, keno, and slot machine play is $2,000 for calendar year 2026,
adjusted for inflation in subsequent calendar years as provided in
section 6041(h). The existing limitations related to the amount wagered
in each of the affected games would be maintained under the proposed
regulations.
Proposed Applicability Date
Section 1.165-10 is proposed to apply to taxable years beginning
after December 31, 2025. Sections 1.6041-1, 1.6041-2, 1.6041-7, 1.6041-
10 1.6041A-1, 31.3406(b)(3)-1, and
[[Page 20601]]
31.3406(g)-2 are proposed to apply to payments made on or after January
1, 2026.
Special Analyses
I. Regulatory Planning and Review--Economic Analysis
Executive Orders 12866 and 13563 direct agencies to assess costs
and benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility. This rule
is expected to be an Executive Order 14192 deregulatory action.
These proposed regulations have been designated by the Office of
Management and Budget's (OMB's) Office of Information and Regulatory
Affairs (OIRA) as subject to review under Executive Order 12866
pursuant to the Memorandum of Agreement (MOA, July 4, 2025) between the
Treasury Department and the OMB regarding review of tax regulations.
OIRA has determined that these proposed regulations are economically
significant and subject to review under section 3(f) of Executive Order
12866 and section 1(c) of the MOA. Accordingly, the proposed
regulations have been reviewed by OMB.
A. Background, Statute, and Proposed Regulations
Under section 6041 of the Internal Revenue Code (Code), persons
engaged in a trade or business that make certain payments in the course
of their trade or business (payors) must file an information return
with the Internal Revenue Service (IRS) to report such payments. The
return contains information about the payment; the name of the payment
recipient (payee); and the address of the payee; and provides the IRS
with a third-party verification of income that the payee may report on
their Federal income tax return. Similarly, under section 6041A,
persons engaged in a trade or business that make payments in the course
of that trade or business as remuneration for services must file
information returns to report those payments. Under section 3406 of the
Code, when certain conditions are met, reportable payments under
sections 6041 or 6041A may be subject to backup withholding, wherein
the payor withholds a specified percentage of the payment and remits
that amount to the IRS. Backup withholding ensures that Federal income
tax is paid on a payment that the payee might otherwise fail to report.
In addition, when payors withhold amounts from payments subject to
backup withholding, they are required to file an annual return to
report the amounts withheld during the year. That same return is also
used by payors to report Federal income tax withheld from other
nonpayroll payments, such as pensions, annuities, gambling winnings,
etc.
Under sections 6041 and 6041A, an information return is required to
be submitted to the IRS only when the aggregate dollar amount of
payments made to a payee over a reportable period equals or exceeds the
statutory threshold in section 6041(a). Under section 3406, backup
withholding, when certain conditions are met, is also generally
required only when the aggregate dollar amount of payments made to a
payee over the reportable period equals or exceeds the threshold
described in section 6041(a). These statutory dollar thresholds apply
to certain payments reported on four information returns--Form 1099-
MISC (Miscellaneous Information), Form 1099-NEC (Nonemployee
Compensation), Form W-2 (Wage and Tax Statement), and Form W-2G
(Certain Gambling Winnings)--as well as backup withholding with respect
to these payments reported on Form 945 (Annual Return of Withheld
Federal Income Tax), as affected by the enactment of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful
Bill Act (OBBBA).
The OBBBA increased the statutory threshold in section 6041(a) to a
base threshold of $2,000 for payments made after December 31, 2025, and
indexed the threshold for inflation for calendar years after 2026.
Prior to the enactment of the OBBBA, the dollar threshold for reporting
certain payments on Form 1099-MISC, Form 1099-NEC, and Form W-2 was
$600. This reporting level had been in place since 1954 and had not
been indexed to inflation. Information reporting on gambling winnings
reported on Form W-2G was governed by the same statutory threshold, but
regulations under section 6041 provided that the dollar threshold was
$1,200 for a single winning from bingo and slot machine play and $1,500
for a single winning from keno. The statutory amendments made by the
OBBBA change the dollar thresholds for all of these payments to be
$2,000 in a calendar year for payments made after December 31, 2025,
with an adjustment for inflation in calendar years after 2026. The
proposed regulations would conform the language in the regulations to
match the new statutory threshold, including the regulatory thresholds
for reporting winnings from keno, bingo, and slot machine play.
The OBBBA also modified the rules governing the itemized deduction
for losses from wagering transactions under section 165(d) of the Code.
Prior to the statutory change in the OBBBA, such deduction was limited
to the extent of the gains from wagering transactions during a taxable
year (reported as income elsewhere on the tax return). The OBBBA
amended the deduction to be 90 percent of the amount of wagering
losses, up to the extent of gains from wagering transactions during the
taxable year. The proposed regulations would modify the existing
regulations to reflect this statutory change.
B. Need for Regulation
The proposed amendments ensure that the regulations reflect current
law, thereby preventing confusion by individuals and entities who are
impacted by the updates to the relevant statutory provisions.
C. Economic Analysis
1. Baseline
The Treasury Department and the IRS have assessed the benefits and
costs of the proposed regulations relative to a no-action baseline
reflecting anticipated Federal income tax-related behavior in the
absence of the proposed regulations.
2. Economic Effects of the Proposed Regulations
a. Reporting and Backup Withholding Threshold
The proposed amendments revise the existing regulations to reflect
the aforementioned statutory changes made by the OBBBA. In addition to
the proposed regulations, the IRS may publish sub-regulatory and
informal guidance, such as notices, announcements, publications on form
instructions, website materials, etc., to instruct taxpayers about how
to interpret and apply the new statutory language to their situations.
Published draft Publication 1099, General Instructions for Certain
Information Returns, for Tax Year 2026 already contains references to
the statutory changes to the reporting threshold made by the OBBBA.
Because the interpretation and application of the newly enacted
statutory language is likely to have no ambiguity, the sub-regulatory
and informal guidance will
[[Page 20602]]
likely provide sufficient guidance for taxpayers, and the benefits of
the proposed regulations beyond such guidance may be limited.
Failure to update now-outdated regulations after law changes could
create confusion and uncertainty for taxpayers impacted by the
statutory changes. Taxpayers and practitioners who normally rely on the
existing regulations must turn to other sources to learn about how to
apply the statutory changes to their situations or else use their own
interpretations. In cases of interpretive uncertainty, taxpayers and
practitioners would incur additional compliance costs as they try to
understand how to apply accurately the new statutory requirements. Some
taxpayers and practitioners may apply the lower, outdated thresholds in
the regulations despite the new, higher thresholds in the statutes.
This is especially true for payors of winnings from keno, bingo, and
slot machine play, which have historically followed a regulatory
exception to the statutory threshold.
For payors, the enacted higher dollar threshold eliminates the
reporting and backup withholding requirements on affected payments
between the old and new thresholds. This change will reduce the
compliance costs incurred by these payors to report payments and
withhold taxes. Because this is a change in the statute, these dollar
thresholds apply regardless of these proposed regulations. However,
because payors may follow the existing regulations, failing to update
the regulations to reflect the changes in the statute increases the
likelihood that payors will not take full advantage of the burden
reductions associated with the lessened reporting and withholding
requirements. The dollar thresholds specified in the existing
regulations for reporting winnings from keno, bingo, and slot machine
play are above the pre-OBBBA statutory level of $600 and below the
$2,000 level in current law. Because the new statutory level exceeds
the pre-OBBBA regulatory reporting thresholds for these games, the
proposed regulations amend these thresholds to match the new statutory
level of $2,000. In the absence of the proposed regulations, the new
dollar threshold of $2,000 would still apply for reporting winnings
from keno, bingo, and slot machine play. Updating the regulations would
provide clear and consistent guidance to taxpayers with respect to the
increased reporting threshold.
Because the proposed regulations only modify the existing
regulations to comport with the new statutory thresholds, the
discretionary effects of the proposed regulations hinge on the extent
to which they eliminate interpretive ambiguity and informational
inconsistency and, as a result, facilitate application of the new
statutory law by affected taxpayers and entities. Persons engaged in a
trade or business are no longer required to report to the IRS certain
payments below $2,000, effective for payments made in calendar year
2026. The Treasury Department and IRS estimate that, for tax year 2024,
more than 328,000 payors filed 7.9 million Forms 1099-MISC reporting
affected payments of at least $600 and less than $2,000, and
approximately 3.3 million payors filed 18.8 million Forms 1099-NEC
reporting payments of non-employee compensation of at least $600 and
less than $2,000. For the same tax year, more than 4,000 payors filed
17.3 million Forms W-2G reporting gambling winnings in the range
between the old and new reporting thresholds, almost 80 percent of
which were for winnings from slot machine play. These payors also filed
Forms 945 to report Federal income tax they withheld on the reportable
payments, when certain conditions are met. In addition, for tax year
2024 approximately 32,000 employers filed 0.9 million W-2s with paid
wages of at least $600 and less than $2,000 that were not subject to
withholding for social security, Medicare, or federal income taxes.
This situation applies in a narrow set of circumstances where
withholding for social security and Medicare taxes is not required,
such as for cases of foreign agricultural workers, election workers,
and certain members of the clergy.
In total, 3.5 million payors filed information returns for tax year
2024 that were between the old and new filing thresholds. This estimate
counts a payor only once if they are in the affected range for more
than one type of return. After adjusting for an expected growth rate to
tax year 2026, the Treasury Department and the IRS estimate that 3.6
million payors are potentially affected by the statutory change and the
clarity provided by these proposed regulations. The Treasury Department
and IRS expect that most of these affected payors will only file
information returns that are above the new threshold provided by OBBBA,
without needing clarification from the proposed regulations. However,
the proposed regulations will provide clarity and save some affected
payors time and resources to identify the appropriate filing threshold.
For the projected reductions in compliance burdens associated with
filing these returns as a result of the higher reporting thresholds
established in the OBBBA, please refer to the Paperwork Reduction Act
section of this document found in Part II of this Special Analyses.
b. Treatment of Wagering Losses
The statutory change in the percentage of wagering losses that may
be deducted from 100 percent to 90 percent reduces the expected after-
tax return to wagering transactions for taxpayers who claim an itemized
deduction for wagering losses. For taxpayers who do not itemize
deductions no deduction may be claimed for wagering losses. Most
taxpayers that report gains from wagering transactions do not itemize
deductions and would be unaffected by the statutory change. For tax
year 2022, the Treasury Department and IRS estimate that about 2.3
million taxpayers reported gains from wagering transactions on
individual tax returns, but less than a third of these taxpayers,
approximately 670,000, also claim an itemized deduction for wagering
losses. The Treasury Department and the IRS project a total of 673,000
taxpayers will take an itemized deduction for wagering losses for tax
year 2026. The relatively small share of taxpayers that report an
itemized deduction for wagering losses is consistent with the small
share of taxpayers overall that itemize deductions. The Treasury
Department and the IRS estimate that 15 percent or fewer taxpayers
itemize under current law.
The proposed regulations provide clarity regarding how to report
wagering losses on a tax return and certainty to affected taxpayers
about the expected after-tax return on wagering transactions. However,
it is expected that tax software companies and tax professionals will
update their products and services to reflect the law change even in
the absence of updated regulations. The Treasury Department estimates
that, of the more than 161 million individual income tax returns filed
for tax year 2022, nearly 98 percent used assistance from a preparer or
tax software while less than 3 percent were self-prepared paper returns
filed by taxpayers without software assistance, likely following IRS
instructions on tax forms. For these reasons, although updating the
existing regulations helps reduce interpretive ambiguity and
informational inconsistency, the economic impacts of any discretionary
aspects of the proposed regulations relating to the deduction of
wagering losses are likely minimal.
[[Page 20603]]
3. Summary
Based on the available models and data, the Treasury Department and
the IRS estimate that the economic costs and benefits of the proposed
regulations would be small. The Treasury Department and the IRS invite
public comments and additional data on the economic effects that would
result from these proposed regulations.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520 (PRA),
generally requires that a Federal agency obtain the approval of the OMB
before collecting information from the public, whether that collection
of information is mandatory, voluntary, or required to obtain or retain
a benefit. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a valid control number assigned by the OMB.
The collections of information in the proposed regulations with
respect to sections 6041 and 6041A are in proposed Sec. Sec. 1.6041-1
and 1.6041A-1. The likely respondents are persons who make payments in
the course of their trade or business. For purposes of the PRA, the
reporting burden associated with the collection of information in
proposed Sec. Sec. 1.6041-1 and 1.6041A-1 will be reflected in the
Paperwork Reduction Act Submissions associated with Forms 1099-MISC,
1099-NEC, W-2, and W-2G (OMB control numbers 1545-0115, 1545-0116,
1545-0029, and 1545-0238, respectively). The collection of information
in the proposed regulations with respect to section 3406 is in proposed
Sec. Sec. 31.3406(b)(3)-1 and 31.3406(g)-2. The collected information
would be used by the payor to determine whether payments to the payee
exceed a threshold that would require backup withholding and the
issuance of an information return. The burden for these requirements is
included with the Form and Instructions for Form 945, Annual Return of
Withheld Federal Income Tax. The Form 945 and Instructions for Form 945
are approved under OMB control number 1545-0029.
The higher reporting threshold set by OBBBA leads to a significant
reduction in the expected number of Forms 1099-MISC, 1099-NEC, W-2G,
and to a lesser extent, Forms W-2 and 945, that will need to be filed.
For calendar year 2027, reflecting tax year 2026 returns, the Treasury
Department and the IRS estimate that the higher reporting threshold
will result in an overall reduction in filing burden of $982 million in
2024 dollars as described below and summarized in the accompanying
table.
Prior to the passage of the OBBBA, the IRS projected that 42.60
million Form 1099-MISCs would be filed in calendar year 2027 (see IRS
Publication 6961 (Rev. 9-2025)). The Treasury Department and the IRS
estimate that 9.32 million of these forms would have payments in the
range affected by the change in the filing threshold and would no
longer need to be filed. Multiplying the reduction in 9.32 million
forms filed by the 0.41 hours per form time burden yields a decrease of
3.82 million burden hours and then multiplying by the $58.40 per hour
monetization rate (in 2024 dollars) provides an expected reduction in
filing burden of $223 million.
Similarly, prior to the passage of the OBBBA, the IRS projected
that 62.72 million Form 1099-NECs would be filed in calendar year 2027.
The Treasury Department and the IRS estimate that 19.54 million of
these forms would have payments affected by the change in the filing
threshold and would no longer need to be filed. Multiplying the
reduction in 19.54 million forms filed by the 0.25 hours per form time
burden yields a decrease of 4.89 million burden hours and then
multiplying by the $58.40 per hour monetization rate provides an
expected reduction in filing burden of $285 million.
In addition, prior to the passage of the OBBBA, the IRS projected
that 267.82 million Form W-2s would be filed in calendar year 2027. The
Treasury Department and the IRS estimate that 0.94 million of these
forms would have payments affected by the change in the filing
threshold and would no longer need to be filed. Multiplying the
reduction in 0.94 million forms filed by the 0.51 hours per form time
burden yields a decrease of 0.48 million burden hours and then
multiplying by the $58.40 per hour monetization rate provides an
expected reduction in filing burden of $28 million.
Also, prior to the passage of the OBBBA, the IRS projected that
34.06 million Form W-2Gs would be filed in calendar year 2027. The
Treasury Department and the IRS estimate that 19.06 million of these
forms would have payments affected by the change in the filing
threshold and would no longer need to be filed. Multiplying the
reduction in 19.06 million forms filed by the 0.4 hours per form time
burden yields a decrease of 7.62 million burden hours and then
multiplying by the $58.40 per hour monetization rate provides an
expected reduction in filing burden of $445 million.
Finally, prior to the passage of the OBBBA, the IRS projected that
47.8 thousand Form 945s would be filed in calendar year 2027. The
Treasury Department and the IRS estimate that 600 of these forms would
have payments affected by the change in the filing threshold and would
no longer need to be filed. Multiplying the reduction in 610 forms
filed by the 8.18 hours per form time burden yields a decrease of 5
thousand burden hours and then multiplying by the $58.40 per hour
monetization rate provides an expected reduction in filing burden of
$292 thousand.
The Treasury Department and the IRS request comments on all aspects
of these estimates.
Table 1--Estimate of the Reduction in Filing Burden From Increased Reporting Threshold, Calendar Year 2027
----------------------------------------------------------------------------------------------------------------
Estimated reduction in
forms filed due to Burden hours Total reduction Total reduction in
Form increase in reporting per form in burden hours monetized hours
threshold
----------------------------------------------------------------------------------------------------------------
1099-MISC................... 9,320,000 0.41 3,821,200 $223,146,000
1099-NEC.................... 19,540,000 0.25 4,885,000 285,284,000
W-2......................... 944,000 0.51 481,000 28,090,000
W-2G........................ 19,060,000 0.40 7,624,000 445,242,000
945......................... 600 8.18 5,000 292,000
-----------------------------------------------------------------------------------
Total................... 48,864,600 N/A 16,816,000 982,054,000
----------------------------------------------------------------------------------------------------------------
[[Page 20604]]
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any Internal Revenue law. Tax returns and tax return
information are confidential, unless section 6103 authorizes
disclosure.
III. Regulatory Flexibility Act
In accordance with the Regulatory Flexibility Act (5 U.S.C. chapter
6) (RFA), it is hereby certified that these proposed regulations will
not have a significant economic impact on a substantial number of small
entities. Although the proposed regulations may affect a substantial
number of small entities, the economic impact of the proposed
regulations is not likely to be significant. The Treasury Department
and the IRS estimate that approximately 3.6 million taxpayers are
affected by the proposed regulations, of which approximately 98 percent
are considered small entities with gross receipts under $40 million.
The economic impact of these proposed regulations is not likely to be
significant, however, because they do not impose any new requirements
on small entities but rather increase the threshold at which they are
required to issue information returns, thus reducing the amount of
information returns entities must issue. For example, small entities
with less than $40 million in gross receipts will on average need to
issue 10 fewer information returns under the increased threshold. The
benefits from the higher filing threshold and the increased certainty
from the proposed regulations will be less than one percent of gross
revenues for these small entities. Notwithstanding this certification,
the Treasury Department and the IRS welcome comments on the impact of
these proposed regulations on small entities.
IV. Submission to Small Business Administration
Pursuant to section 7805(f) of the Code, these proposed regulations
will be submitted to the Chief Counsel for the Office of Advocacy of
the Small Business Administration for comment on its impact on small
business.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits and take
certain other actions before issuing a final rule that includes any
Federal mandate that may result in expenditures in any one year by a
State, local, or Tribal government, in the aggregate, or by the private
sector, of $100 million in 1995 dollars, updated annually for
inflation. This rule does not include any Federal mandate that may
result in expenditures by State, local, or Tribal governments, or by
the private sector in excess of that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on State and local
governments, and is not required by statute, or preempts State law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive order. These proposed regulations do not
have federalism implications and do not impose substantial direct
compliance costs on State and local governments or preempt State law
within the meaning of the Executive order.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are timely submitted
to the Treasury Department and the IRS as prescribed in this preamble
under the ADDRESSES heading. The Treasury Department and the IRS
request comments on all aspects of the proposed regulations. Any
electronic and paper comments submitted will be available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> or upon request. Once submitted to the Federal
eRulemaking Portal, comments cannot be edited or withdrawn.
A public hearing will be scheduled if requested in writing by any
person that timely submits electronic or written comments. If a public
hearing is scheduled, notice of the date, time, and place for the
public hearing will be published in the Federal Register.
Drafting Information
The principal author of these proposed regulations is the Office of
the Associate Chief Counsel (Procedure and Administration). However,
other personnel from the Treasury Department and the IRS participated
in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social security,
Unemployment compensation.
Proposed Amendments to the Regulations
Accordingly, the Treasury Department and IRS propose to amend 26
CFR parts 1 and 31 as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Par. 2. Section 1.165-10 is revised to read as follows:
Sec. 1.165-10 Wagering losses.
(a) In general. For purposes of losses from wagering transactions,
a deduction is allowed under section 165(d) of the Internal Revenue
Code for 90 percent of the amount of such losses during the taxable
year, but only to the extent of the gains from wagering transactions
during that year.
(b) Joint returns. In the case of spouses making a joint return, 90
percent of the combined losses of the spouses from wagering
transactions during the taxable year are allowed as a deduction under
section 165(d) only to the extent of the combined gains of the spouses
from wagering transactions during that year.
(c) Applicability date. This section applies to taxable years
beginning after December 31, 2025.
Par. 3. Section 1.6041-1 is amended by:
0
1. Revising the section heading, paragraphs (a)(1)(i)(A) and (B), and
paragraph (a)(1)(iii).
0
2. In paragraph (a)(1)(v), designating Example 1 and 2 as paragraphs
(a)(1)(v)(A) and (B).
0
3. Revising the first sentence of newly designated paragraph
(a)(1)(v)(A).
0
4. Revising newly designated paragraph (a)(1)(v)(B).
0
5. Adding paragraph (a)(3).
0
6. Revising paragraph (j).
The revisions and addition read as follows:
Sec. 1.6041-1 Return of information as to payments exceeding
threshold.
(a) * * *
(1) * * *
(i) * * *
(A) Salaries, wages, commissions, fees, and other forms of
compensation for services rendered that equal or exceed the dollar
threshold in effect for the calendar year under section 6041(a) and
(h).
(B) Interest (including original issue discount), rents, royalties,
annuities,
[[Page 20605]]
pensions, and other gains, profits, and income that equal or exceed the
dollar threshold in effect for the calendar year under section 6041(a)
and (h).
* * * * *
(iii) Information returns required under section 6045(f) on or
after January 1, 2007. For payments made on or after January 1, 2007,
to which section 6045(f) (relating to payments to attorneys) applies,
the following rules apply. Notwithstanding the provisions of paragraph
(a)(1)(ii) of this section, payments to an attorney that are described
in paragraph (a)(1)(i) of this section but which otherwise would be
reportable under section 6045(f) are reported under section 6041 and
this section and not section 6045(f) of the Code. This exception
applies only if the payments are reportable with respect to the same
payee under both sections 6041 and 6045(f). Thus, a person who, in the
course of a trade or business, pays taxable damages in an amount that
equals or exceeds the dollar threshold in effect for the calendar year
under section 6041(a) and (h) to a claimant by paying that amount to
the claimant's attorney is required to file an information return under
section 6041 with respect to the claimant, as well as another
information return under section 6045(f) with respect to the claimant's
attorney. For provisions relating to information reporting for payments
to attorneys, see Sec. 1.6045-5.
* * * * *
(v) * * *
(A) * * * In 2026, Restaurant owner A, in the course of business,
pays $2,500 of fixed or determinable income to B, a repairman, by
credit card. * * *
(B) Example 2. In 2026, Restaurant owner A, in the course of
business, pays $2,500 of fixed or determinable income to B, a
repairman, through a third party payment network. B is one of a
substantial number of persons who have established accounts with Y, a
third party settlement organization that provides standards and
mechanisms for settling the transactions and guarantees payments to
those persons for goods or services purchased through the network. Y is
responsible for making the payment to B. Under paragraph (a)(1)(iv) of
this section, A, as payor, is not required to file an information
return under section 6041 with respect to the transaction because the
transaction is a third party network transaction that is subject to
reporting under section 6050W. Solely for purposes of determining
whether A is required to report under section 6041, the de minimis
threshold for third party network transactions in Sec. 1.6050W-1(c)(4)
is disregarded.
* * * * *
(3) Dollar threshold in effect for the calendar year. For payments
made before January 1, 2026, the dollar threshold in effect for the
calendar year under section 6041(a) is $600. For payments made after
December 31, 2025, and before January 1, 2027, the dollar threshold in
effect for the calendar year under section 6041(a) is $2,000. For
payments made after December 31, 2026, the dollar threshold in effect
for the calendar year under section 6041(a) is $2,000 plus the
inflation adjustment provided in section 6041(h).
* * * * *
(j) Applicability date. This section applies to payments made on or
after January 1, 2026.
Par. 4. Section 1.6041-2 is amended by:
0
1. Adding a heading to paragraph (a).
0
2. Revising the third and fourth sentences of paragraph (a)(1).
0
3. Revising paragraphs (b)(1)(ii) and (d).
The addition and revisions read as follows:
Sec. 1.6041-2 Return of information as to payments to employees.
(a) Reporting payments to employees--(1) * * * All other payments
of compensation, including the cash value of payments made in any
medium other than cash, to an employee by the employee's employer in
the course of the trade or business of the employer must also be
reported on Form W-2 if the total of such payments and the amount of
the employee's wages (as defined in section 3401), if any, required to
be reported on Form W-2 equals or exceeds the dollar threshold in
effect for the calendar year under section 6041(a) and (h). For
example, in 2026, when the threshold in effect under section 6041(a) is
$2,000, if a payment of $2,500 is made to an employee and $1,500
thereof represents wages subject to withholding under section 3402 and
the remaining $1,000 represents compensation not subject to
withholding, such wages and compensation must both be reported on Form
W-2. * * *
* * * * *
(b) * * *
(1) * * *
(ii) Described in section 72(m)(3)(B), shall be reported on Forms
1096 and 1099 to the extent such amounts are includible in the gross
income of such beneficiary if the amounts so includible equal or exceed
the dollar threshold in effect for the calendar year under section
6041(a) and (h). In addition, every trust described in section
501(c)(17) which makes one or more payments (including separation and
sick and accident benefits) in an amount that equals or exceeds the
dollar threshold in effect for the calendar year under section 6041(a)
and (h) to an individual must file an annual information return on Form
1096, accompanied by a statement on Form 1099, for each such
individual. Payments made by an employer or a person other than the
trustee of the trust should not be considered in determining whether
the amount paid by the trustee equals or exceeds the dollar threshold
in effect for the calendar year under section 6041(a) and (h).
* * * * *
(d) Applicability date. This section applies to returns filed with
respect to payments made on or after January 1, 2026.
Par. 5. Section 1.6041-7 is amended by revising paragraph (b)(1) to
read as follows:
Sec. 1.6041-7 Magnetic media requirement.
* * * * *
(b) * * *
(1) For calendar years beginning on or after January 1, 1971, a
health care carrier, or an agent thereof, making payment of fees or
other compensation to providers of medical and health care services,
may make a separate return on magnetic media for each separate
department within a specific line of such carrier's business, so long
as all of such returns taken together contain all of the information
required by section 6041 with respect to each provider of medical and
health care services to whom such health care carrier makes payments
that equal or exceed the dollar threshold in effect for the calendar
year under section 6041(a) and (h).
* * * * *
Par. 6. Section 1.6041-10 is amended by:
0
1. Revising paragraph (b)(1)(i).
0
2. Revising the introductory text of paragraph (g)(5).
0
3. In paragraph (g)(5), designating Examples 1 through 6 as paragraphs
(g)(5)(i) through (vi).
0
4. Revising newly designated paragraphs (g)(5)(i) and (ii).
0
5. In newly designated paragraph (g)(5)(iv), removing the language
``example 3'' and adding, in its place, the language ``in paragraph
(g)(5)(iii) of this section (Example 3)''.
0
6. Revising newly designated paragraph (g)(5)(v).
0
7. Revising paragraph (i).
[[Page 20606]]
The revisions read as follows:
Sec. 1.6041-10 Return of information as to payments of winnings from
bingo, keno, and slot machine play.
* * * * *
(b) * * *
(1) * * *
(i) For purposes of this section, the term reportable gambling
winnings is defined as follows:
(A) For bingo, the term reportable gambling winnings means winnings
that equal or exceed the dollar threshold in effect for the calendar
year under section 6041(a) and (h) from one bingo game, without
reduction for the amount wagered. All winnings received from all wagers
made during one bingo game are combined (for example, all winnings from
all cards played during one bingo game are combined).
(B) For keno, the term reportable gambling winnings means winnings
that equal or exceed the dollar threshold in effect for the calendar
year under section 6041(a) and (h) from one keno game reduced by the
amount wagered on the same keno game. All winnings received from all
wagers made during one keno game are combined (for example, all
winnings from all ``ways'' on a multi-way keno ticket are combined).
(C) For slot machine play, the term reportable gambling winnings
means winnings that equal or exceed the dollar threshold in effect for
the calendar year under section 6041(a) and (h) from one slot machine
play, without reduction for the amount wagered.
* * * * *
(g) * * *
(5) Examples. The following examples illustrate the provisions of
this section. For each example, assume that for purposes of the
aggregate reporting method in this paragraph (g), casino R's
``information reporting period'' for all calendar years is a gaming day
that begins at 3 a.m. and ends at 2:59 a.m. the following day (except
for January 1 and December 31), that (ignoring the inflation adjustment
in 6041(h) for simplicity of illustration) the dollar threshold in
effect for each calendar year under section 6041(a) is $2,000, and that
individuals C, D, and E are U.S. persons.
(i) Example 1. On Day 1, between 7 a.m. and 4 p.m., C places five
wagers at casino R on five different slot machines. The first two
wagers result in no win. The third wager results in a $2,000 win. The
fourth wager results in a $2,500 win. The fifth wager results in an
$800 win:
(A) Under paragraph (b)(1)(i)(C) of this section, there are
reportable gambling winnings from the slot machine play of $4,500
($2,000 + $2,500). The $800 win is not a reportable gambling winning
from slot machine play because it does not equal or exceed the dollar
threshold.
(B) Because all the amounts were won on the same type of game (even
though each of the winnings occurred on different machines) during the
same information reporting period, R is permitted to use the aggregate
reporting method under this paragraph (g). If R decides not to use the
aggregate reporting method, a separate Form W-2G would have to be filed
and furnished for the payment of reportable gambling winnings of $2,000
and for the payment of reportable gambling winnings of $2,500. However,
if R decides to use the aggregate reporting method, R may report total
reportable gambling winnings from slot machine play of $4,500 ($2,000 +
$2,500) on one Form W-2G.
(ii) Example 2. Assume the same facts as in paragraph (g)(5)(i) of
this section (Example 1), except that in addition to the winnings
described in paragraph (g)(5)(i) of this section (Example 1), at 5 a.m.
on Day 2, C wins $3,250 from one slot machine play at casino R. Even
though C played the same type of game (slot machine play) on Day 1 and
Day 2, under paragraph (b)(2) of this section, the win at 5 a.m. on Day
2 is a win during a separate information reporting period. Under
paragraph (g)(2)(i) of this section, the $3,250 of reportable gambling
winnings on Day 2 cannot be aggregated with the reportable gambling
winnings of $4,500 from Day 1 on a single Form W-2G. Accordingly, if R
uses the aggregate reporting method, R must file two Forms W-2G with
respect to C's reportable gambling winnings on Day 1 and Day 2. R must
report $4,500 of reportable gambling winnings from slot machine play
paid to C on Day 1 on the first Form W-2G, and $3,250 of reportable
gambling winnings from slot machine play paid to C on Day 2 on the
second Form W-2G.
* * * * *
(v) Example 5. At 2 p.m. on Day 1, D won $2,000 (after reducing the
amount of the win by the amount wagered) playing one keno game at
casino R. D provides R with his driver's license. The driver's license
has D's photograph on it, as well as D's name and address. The driver's
license does not include D's social security number. D cannot remember
his social security number and has no other identification at the time
with his social security number on it. D does not provide R with his
social security number before R pays the winnings to D. Because D
cannot remember his social security number, D cannot complete and sign
a Form W-9. R deducts and withholds under the backup withholding
provisions of section 3406(a) and pays the remainder to D. D returns to
casino R and at 6 p.m. on Day 1 wins $2,500 (after reducing the amount
of the win by the amount wagered) in one keno game. D provides R with
his driver's license as well as D's social security card. R generally
uses the aggregate reporting method and, in all cases where it is used,
R complies with the requirements of this paragraph (g). At 8 p.m. and
10 p.m. on Day 1, D wins an additional $2,800 and $2,700 (after
reducing the amount of the win by the amount wagered), respectively,
from two different keno games. For each of these two wins, an employee
of R obtains the information from D required by this paragraph (g).
Under paragraph (b)(1)(i)(B) of this section, each of D's wins from the
four games of keno on Day 1 ($2,000, $2,500, $2,800, and $2,700) are
reportable gambling winnings. Because D's first win on Day 1 was at 2
p.m. and D's last win on Day 1 was at 10 p.m., all of D's reportable
gambling winnings from keno are won during the same information
reporting period. Because R satisfies the requirements of paragraph
(g)(2)(i) of this section, R may use the aggregate reporting method to
report D's reportable gambling winnings from keno. However, pursuant to
paragraph (g)(4)(iii) of this section, the $2,000 payment made to D at
2 p.m. cannot be reported under the aggregate reporting method because
that payment was subject to backup withholding. Accordingly, if R uses
the aggregate reporting method under this paragraph (g), R will have to
file two Forms W-2G with respect to D's reportable gambling winnings
from keno on Day 1. On the first Form W-2G, R will report $2,000 of
reportable gambling winnings and of the amount of backup withholding
with respect to the 2 p.m. win from keno, and, on the second Form W-2G,
R will report $8,000 of reportable gambling winnings from keno
(representing the three payments of $2,500, $2,800, and $2,700 that D
won between 6 p.m. and 10 p.m. on Day 1).
* * * * *
(i) Applicability date. This section applies to payments of
reportable gambling winnings from bingo, keno, or slot machine play
made on or after January 1, 2026.
* * * * *
Par. 7. Section 1.6041A-1 is amended by revising paragraphs
(d)(4)(ii) and (iii) to read as follows:
[[Page 20607]]
Sec. 1.6041A-1 Returns regarding payments of remuneration for
services and certain direct sales.
* * * * *
(d) * * *
(4) * * *
(ii) Examples. The provisions of this paragraph (d)(4) are
illustrated by the following examples:
(A) Example 1. In 2026, service recipient A, in the course of its
business, pays by credit card remuneration of $2,500 to service
provider B for services performed by B. B is one of a network of
unrelated persons that has agreed to accept A's credit card as payment
under an agreement that provides standards and mechanisms for settling
the transactions between a merchant acquiring bank and the persons who
accept the cards. Merchant acquiring bank Y is responsible for making
the payment to B. Under paragraph (d)(4)(i) of this section, A is not
required to file an information return under section 6041A(a) with
respect to the transaction because Y, as the payment settlement entity
for the payment card transaction, is required to file an information
return under section 6050W.
(B) Example 2. In 2026, service recipient A, in the course of
business, pays through a third party payment network $2,500 to B, a
repairman, through a third party payment network. B is one of a
substantial number of persons who have established accounts with Y, a
third party settlement organization that provides standards and
mechanisms for settling the transactions and guarantees payments to
those persons for goods or services purchased through the network. Y is
responsible for making the payment to B. Under paragraph (d)(4)(i) of
this section, A is not required to file an information return under
section 6041A(a) with respect to the transaction because the
transaction is a third party network transaction that is subject to
reporting under section 6050W. Solely for purposes of determining
whether the transaction is subject to reporting under section 6041A,
the de minimis threshold for third party network transactions in Sec.
1.6050W-1(c)(4) is disregarded.
(iii) Applicability date. This section applies to payments made by
payment card or through a third party payment network on or after
January 1, 2026.
* * * * *
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
Par. 8. The authority citation for part 31 continues to read in
part as follows:
Authority: 26 U.S.C. 7805.
* * * * *
Par. 9. Section 31.3406-0 is amended by revising the entry for
Sec. 31.3406(b)(3)-1(b)(3) to read as follows:
Sec. 31.3406-0 Outline of the backup withholding regulations.
* * * * *
Sec. 31.3406(b)(3)-1 Reportable Payments of Rents, Commissions,
Nonemployee Compensation, etc.
* * * * *
(b) * * *
(3) Payments exceeding threshold.
* * * * *
Par. 10. Section 31.3406(b)(3)-1 is amended by:
0
1. Revising the second sentence of paragraph (a).
0
2. Revising the heading of paragraph (b)(3) and revising paragraph
(b)(3)(i).
0
3. Revising paragraph (b)(3)(ii)(A).
0
4. Revising the heading and the first sentence of paragraph
(b)(3)(ii)(B).
The revisions read as follows:
Sec. 31.3406(b)(3)-1 Reportable payments of rents, commissions,
nonemployee compensation, etc.
(a) * * * See paragraph (b) of this section for an exception
concerning payments aggregating less than the dollar threshold in
effect for the calendar year under section 6041(a) and (h). * * *
(b) * * *
(3) Payments exceeding threshold--(i) In general. A payment is a
reportable payment under paragraph (a) of this section only if the
aggregate amount of the current payment and all previous payments to
the payee during the calendar year equals or exceeds the dollar
threshold in effect for the calendar year under section 6041(a) and
(h). The amount subject to withholding is the entire amount of the
payment that causes the total amount paid to the payee to equal or
exceed the dollar threshold in effect for the calendar year under
section 6041(a) and (h), plus the amount of any subsequent payments
made to the payee during that calendar year. This paragraph (b)(3)(i)
does not apply to gambling winnings (as provided in Sec. 31.3406(g)-
2(d)(1)).
(ii) * * *
(A) The aggregation rule. The aggregation rule of paragraph
(b)(3)(i) of this section does not apply if the payor was required to
make an information return under section 6041 or 6041A(a) for the
preceding calendar year with respect to payments to the payee, or the
payor was required to withhold under section 3406 during the preceding
calendar year with respect to payments to the payee that were
reportable under section 6041 or 6041A(a).
(B) Determination of whether payments exceed the dollar threshold.
In determining whether payments to a payee equal or exceed the dollar
threshold in effect for the calendar year under section 6041(a) and (h)
for purposes of withholding under section 3406, the payor must
aggregate only payments of the same kind made to the same payee. * * *
* * * * *
Par. 11. Section 31.3406(g)-2 is amended by:
0
1. Revising the second sentence of paragraph (d)(2).
0
2. Revising paragraph (h).
The revisions read as follows:
Sec. 31.3406(g)-2 Exception for reportable payment for which
withholding is otherwise required.
* * * * *
(d) * * *
(2) * * * A gambling winning (other than a winning from bingo,
keno, or slot machines) is a reportable gambling winning only if the
amount paid with respect to the wager equals or exceeds the dollar
amount in effect for the calendar year under section 6041(a) and (h)
and if the proceeds are at least 300 times as large as the amount
wagered. * * *
* * * * *
(h) Applicability date. This section applies to payments of
reportable gambling winnings paid with respect to a winning event that
occurs on or after January 1, 2026.
Frank J. Bisignano,
Chief Executive Officer.
[FR Doc. 2026-07519 Filed 4-16-26; 8:45 am]
BILLING CODE 4831-GV-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.