07 August 2026

IRS finalizes regulations on backup withholding for third-party settlement organizations

The IRS has released final regulations (TD 10053) governing backup withholding on reportable payments with respect to third-party network transactions, reflecting changes made by the "One Big Beautiful Bill Act" (OBBBA) to IRC Section 3406. The final regulations adopt the proposed regulations (see Tax Alert 2026-0249) without change. A Tax Alert is forthcoming.

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

Document ID: 2026-1689