Increase in Threshold for Requiring Information Reporting With Respect to Certain Payees; Extension and Modification of Limitation on Wagering Losses; Hearing
Key claim: The IRS is holding a public hearing on proposed rules that would raise dollar thresholds for business-payment information reporting and amend regulations on the deductibility of wagering losses.
Abstract
(Proposed Rule · Treasury Department, Internal Revenue Service) This document provides a notice of public hearing on the notice of proposed rulemaking (REG-113229-25) published in the Federal Register on April 17, 2026. The proposed regulations contain 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. The proposed regulations also contain proposed amendments to the regulations governing wagering losses.
Why this matters
The hearing notice moves two unrelated tax provisions—raising information-reporting dollar thresholds for business payments and modifying wagering-loss deduction limits—closer to finalization within a single rulemaking vehicle. For payers, higher reporting thresholds mean fewer 1099s and reduced compliance burden; for gamblers, the wagering-loss changes could shift how much of their losses remain deductible. Tracking the hearing and comment record is the first substantive signal of how Treasury may calibrate both provisions.