Federal Register #TD 10053

IRS Issues Final Regulations on Backup Withholding for Third Party Network Transactions

This opportunity concerns the IRS issuing final regulations on backup withholding for third party network transactions. - Government Buyer: - Department of the Treasury, Internal Revenue Service (IRS) - No OEMs or vendors are involved, as this is a regulatory action, not a procurement - No products or services are being requested or purchased - Key Details: - Regulations clarify and increase the threshold for backup withholding on reportable payments by third party settlement organizations - Aims to reduce the frequency of required backup withholding - Applies to entities required to file information returns for third party network transactions - No new requirements beyond clarifying the withholding threshold - No contract value, period of performance, or line items are applicable

Description

This document contains final regulations governing backup withholding on reportable payments with respect to third party network transactions. The regulations reflect recent statutory changes affecting backup withholding requirements for third party settlement organizations making payments in settlement of third party network transactions. The final regulations clarify the threshold at which entities must backup withhold for reportable payments and increase the threshold, reducing the frequency of backup withholding. These regulations are effective August 10, 2026, and apply to payments made in calendar years beginning after December 31, 2024.

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