Sponsors (2)
The bill moves information returns up to Jan 31 to give taxpayers and the IRS timelier data for more accurate filing, at the trade-off of higher administrative costs and increased risk of errors, amendments, and taxpayer confusion for payers and recipients.
Taxpayers and the IRS will receive information returns earlier (by Jan 31), enabling quicker detection and correction of reporting errors before tax filing season.
Taxpayers (including small-business owners) get faster reporting of payer payments (interest, dividends, certain nonemployee payments) and earlier gambler-withholding records, helping them prepare more accurate returns sooner.
Businesses and payers (e.g., small businesses, financial institutions) must accelerate administrative and reporting processes to meet the earlier Jan 31 electronic-filing deadline, increasing compliance burden and potential costs.
Payers that rely on year-end data reconciliation (payroll processors, retirement reporters, hospitals/health systems) may face higher error rates or need to file amended returns if data is incomplete by the earlier deadline.
Taxpayers risk receiving hurried notices or experiencing mismatches and confusion during filing season if IRS systems and recipients are not fully synchronized with the accelerated reporting schedule.
Based on analysis of 2 sections of legislative text.
Moves many electronic information return deadlines from March 31 to January 31 for specified reporting under the tax code.
Requires many types of electronically-filed information returns (like certain bank, broker, and payee reports) to be filed by January 31 of the year after the calendar year covered, instead of the current March 31 deadline for most electronic returns. The change applies to returns for calendar years after December 31, 2027. The amendment targets specific Code sections for information reporting and adds a January 31 deadline for certain gambler-withholding returns; it aims to shorten the time between the end of a tax year and the IRS receiving payee information to help detect fraud and identity theft earlier.
Official title: Amend the Internal Revenue Code of 1986 to modify the time for filing certain information returns.
Introduced July 27, 2026 by Margaret Wood Hassan · Last progress July 27, 2026