A rapidly evolving regulatory landscape is placing new demands on banks, credit unions, insurance companies, and other financial institutions. Two distinct forces are reshaping compliance in 2025 and 2026: IRS-initiated infrastructure changes that affect how and where you file, and the One Big Beautiful Act (OBBA), which has introduced new form types and account structures that touch nearly every corner of your reporting obligations. The workload has rarely been heavier.

The IRS is retiring the FIRE system and requiring a full migration to IRIS. The One Big Beautiful Bill Act has created the Vehicle Loan Interest Statement (Form 1098-VLI), introducing fresh reporting obligations for auto lenders. And Trump Accounts bring an entirely new set of account administration and reporting requirements that banks and approved trustees must prepare for. Meanwhile, Digital Asset Broker rules are now operational and for traditional banks tokenizing financial instruments and leveraging blockchain for payment processing, Form 1099-DA compliance is anything but straightforward.

Key Learnings:

• Understand the confirmed FIRE sunset timeline and what the move to IRIS XML schemas means for your 1099 filing infrastructure.
• Navigate the IRS Digital Asset Broker regulations and determine which FI activities trigger Form 1099-DA reporting obligations.
• Identify what lenders need to capture and report on Form 1098-VLI for qualified passenger vehicle loans.
• Assess your institution’s readiness to serve as a Trump Account trustee or rollover custodian, including IRS eligibility, notification requirements, and anticipated reporting obligations.
• Prioritize the compliance actions that require the most lead time and understand which deadlines are already in play.

Join Sovos expert Wendy Walker for a comprehensive look at each of these critical developments, what they mean for your institution, and the practical steps you need to take now to stay ahead.