08 January 2026

IRS proposes amendments to regulations on backup withholding on third-party network transactions

The IRS on January 8, 2026, issued proposed amendments (REG-112829-25) to the regulations under IRC Section 3406 related to backup withholding on third-party network transactions. The proposed amendments address changes made to IRC Sections 6050W and 3406 by the "One Big Beautiful Bill Act" (OBBBA). A Tax Alert is forthcoming.

* * * * * * * * * *
Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor

Document ID: 2026-0145