On January 8, 2026, the Treasury and IRS announced proposed regulations that revise the backup‑withholding threshold for third‑party settlement organizations under the One, Big, Beautiful Bill. The changes clarify that such organizations need not perform backup withholding on payments processed through third‑party payment networks unless the gross amount of reportable transactions to a payee exceeds $20,000 and the number of transactions exceeds 200. The agencies are seeking comments from stakeholders through regulations.gov. The proposal also reiterates that the reporting threshold for Form 1099‑K has returned to the pre‑American Rescue Plan Act level, applying only when both the dollar and transaction counts are surpassed. Businesses and taxpayers are reminded that these thresholds do not alter the taxability of income.
https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-reflecting-changes-from-the-one-big-beautiful-bill-to-the-threshold-for-backup-withholding-on-certain-payments-made-through-third-parties
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