Federal Register #REG-113229-25

Proposed Rule: Increase in Threshold for Information Reporting and Modification of Wagering Losses Limitation

This summary covers a proposed regulatory change by the Treasury Department and IRS affecting information reporting and wagering loss limitations: - The Treasury Department and Internal Revenue Service (IRS) are proposing amendments to regulations governing information reporting thresholds and backup withholding requirements. - The proposed rule increases the reporting threshold for payments made in the course of a trade or business from $600 to $2,000, effective for payments after December 31, 2025. - The threshold will be indexed to inflation for future years. - Amendments also update regulations on the limitation of wagering losses, reflecting recent statutory changes from the One, Big, Beautiful Bill Act (OBBBA). - These changes impact businesses required to file information returns and individuals claiming deductions for wagering losses. - No OEMs, vendors, or specific products/services are involved, as this is a regulatory update rather than a procurement action. - The intent is to reduce compliance burdens and modernize regulations to align with current law.

Description

This proposed rule by the Treasury Department and IRS proposes amendments to regulations regarding dollar thresholds for information reporting on payments made in the course of trade or business, and backup withholding rules. It also proposes changes to regulations governing wagering losses, reflecting recent statutory changes. The amendments will impact payors in business and individuals claiming wagering loss deductions, aiming to update outdated thresholds and reduce compliance burdens.

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