Increase in Threshold for Requiring Information Reporting with Respect to Certain Payees
Section 70433 · Sec. 70433 ·
What this chapter is about
This part raises a reporting floor from $600 to $2,000. Above that a payer must report what it paid. The figure grows with prices after 2026. The change reaches payments made after December 31, 2025.
“Section 6041(a) is amended by striking "$600" and inserting "$2,000".”
The section strikes $600 and inserts $2,000 in section 6041(a) of the Internal Revenue Code of 1986. It also changes the subsection heading and replaces taxable year with calendar year in that subsection.
What the document actually says
“Section 6041(a) is amended by striking "$600" and inserting "$2,000".”
That sentence, in plain words
The figure $600 is taken out. The figure $2,000 is put in.
What this is about
That figure sets when a payer must report. A higher floor means fewer reports. The heading is reworded to match.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70433 in the PDF
What the document says
“In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to--”
The section adds a new subsection (h) to section 6041 of the Internal Revenue Code of 1986 so that from a calendar year after 2026 the threshold rises by a cost of living adjustment measured from calendar year 2025, with any increase rounded to the nearest $100.
What the document actually says
“In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to--”
That sentence, in plain words
From a calendar year after 2026 the figure grows. The way it grows follows below.
What this is about
The rise follows a price measure in the tax code. Any rise is rounded to the nearest $100. Before 2027 the figure stays put.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“Section 6041A(a)(2) is amended by striking "is $600 or more" and inserting "equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)".”
The section replaces the fixed $600 test in section 6041A(a)(2) of the Internal Revenue Code of 1986 with a pointer to the amount in effect for the year under section 6041(a), and makes the same swap in section 3406(b)(6)(A) along with a matching heading change. The amendments apply to payments made after December 31, 2025.
What the document actually says
“Section 6041A(a)(2) is amended by striking "is $600 or more" and inserting "equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)".”
That sentence, in plain words
A fixed figure is taken out of a rule. A pointer to the new figure is put in.
What this is about
So the two rules move together from now on. The same swap is made in a withholding rule. The changes reach payments after December 31, 2025.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: raise the reporting threshold, add the inflation adjustment with its rounding rule, carry the new figure into the services reporting and backup withholding rules, and fix the effective date.
The two conforming amendments changing a subsection heading and replacing taxable year with calendar year.
The section works by amending sections 3406, 6041 and 6041A of the Internal Revenue Code of 1986, which are not indexed here, so what must be reported cannot be checked against anything on this site.
