The IRS proposed amendments to the regulations governing backup withholding relating to third-party network transactions.
The regulations (REG-112829-25; RIN 1545-BR80) were proposed Thursday.
The GOP’s 2025 tax-and-spending law reversed and significantly shrunk how many taxpayers that use platforms like Ebay, Venmo and CashApp would receive the tax form 1099-K. These proposed rules address the impact of the reversal on backup withholding thresholds.
- The proposed regulations reflect recent statutory changes that affect third-party settlement organizations who make payments in settlement of third-party network transactions, the IRS said.
- The rules clarify that when calculating the amount subject to ...