Increase in Threshold for Requiring Information Reporting With Respect to Certain Payees; Extension and Modification of Limitation on Wagering Losses (REG-113229-25)

These proposed regulations would amend regulations under sections 165, 6041, 6041A, and 3406 to incorporate changes implemented through the One, Big, Beautiful Bill Act (OBBBA), Pub. L. 119-21, 139 Stat. 72 (July 4, 2025). These proposed regulations would raise 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. Previously, the reporting threshold was $600 (or $1,200 for winnings from bingo and slot machine play or $1,500 for winnings from keno). The threshold for payments made beginning in 2026 will be $2000, adjusted for inflation in years after 2026. The proposed regulations would also amend the regulations governing wagering losses to limit the deduction to 90 percent of the amount of wagering losses during a taxable year and only to the extent of gains from wagering transactions during a taxable year.