The IRS has released draft regulations implementing the information reporting threshold changes under the One Big Beautiful Bill Act (OBBBA). The OBBBA raised the general reporting threshold for Forms 1099-MISC, 1099-NEC, W-2, and W-2G from $600 to $2,000, effective for payments made after December 31, 2025, with annual inflation adjustments beginning in 2027. The draft regulations conform the existing regulatory language to the new statutory thresholds, including bringing bingo, keno, and slot machine winnings — which previously had their own lower thresholds — in line with the new $2,000 level. This has also raised the threshold for backup withholding threshold to $2,000.
The regulations also implement the OBBBA’s change to the wagering loss deduction,now capped at 90% of losses (down from 100%), subject to the existing limit that losses may only be deducted to the extent of wagering gains.
The regulations are currently in the 60 day comment period to be followed by 30 days from final publication to enforcement.
