LexRegPulse Daily - Aug 10, 2026
Alex here. This is LexRegPulse Daily for Monday, August 10, 2026.
Treasury and the IRS finalized backup withholding rules for third-party network transactions today. But the compliance clock didn't start today — it started retroactively, reaching back to payments made since January 2025. Payment processors and platforms must now aggregate a payee's accounts by taxpayer ID when testing 1099-K reporting thresholds. Account-splitting to dodge those thresholds no longer works. And Treasury was explicit: no 1099-K doesn't mean no tax liability. For banks running payment operations, this week's job…
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