Proposed regulations: Increase in Form 1099 reporting threshold; change in limitation on wagering losses
60-day comment period
The U.S. Treasury Department and IRS today released proposed regulations (REG-113229-25) that would amend the existing regulations governing information reporting on payments made in the course of a trade or business, as well as the corresponding backup withholding regulations, to reflect the increase in the dollar threshold for such reporting under the “One Big Beautiful Bill Act” (OBBBA) from $600 to $2000 (indexed for inflation), effective for payments made after December 31, 2025.
The proposed regulations would also amend the existing regulations under section 165 to reflect the change under OBBBA in the percentage of wagering losses that may be deducted against wagering gains during a tax year from 100% to 90%, effective for tax years beginning after December 31, 2025.
Comments on the proposed regulations, and requests for a public hearing, are due by June 16, 2026.