Key IRS Changes Just Announced
1. Inflation Adjustments for 2026
The IRS released Revenue Procedure 2025-32, applying inflation adjustments to more than 60 tax provisions including income tax rate brackets, standard deductions, and other thresholds for tax year 2026.(irs.gov)
2. 1099-K Thresholds Revised Under OBBB
Under the One, Big, Beautiful Bill, the lower threshold for third-party settlement organizations to issue Form 1099-K has been adjusted. The IRS issued FAQs confirming a return to a $20,000 gross payments threshold (with >200 transactions) for certain periods.(irs.gov)
3. Guidance on Employee Retention Credit (ERC)
Additional IRS guidance (Fact Sheet 2025-07) clarifies limitations and refund claims for ERC in Q3 and Q4 of 2021, especially for claims filed after deadline of January 31, 2024.(irs.gov)
How Changes Affect U.S. Taxpayers
- Higher thresholds: Because of inflation, thresholds for many credits and deductions will increase, reducing tax for many.
- Marketplace and gig platform users: If your gross payments on platforms like eBay, Uber, or Airbnb exceed $20,000 (and >200 transactions), third-party settlement entities will issue 1099-K forms. Below those thresholds, it's less likely — though income remains taxable regardless.
- Late ERC claims: Strict deadlines still apply — late filings may be trimmed or denied under new limitations.
Practical Planning Tips
- Estimate 2026 brackets now: For high-earners, knowing bracket edges helps in timing income or deductions.
- Track platform sales carefully: Keeping transaction count and payment totals will help determine whether you’ll receive 1099-K.
- Document ERC eligibility: Given stricter guidance, keep thorough records for refunds/credits to support any claim.
Example Scenarios
- A gig worker earning $21,000 through many small sales: previously may not receive 1099-K if under 200 transactions; under new guidance threshold may apply.
- A business with car‐loan interest reporting obligations: IRS has given transition relief for lenders under new OBBB rules.(irs.gov)
Summary
These newly effective adjustments can reduce your liability and change your reporting obligations: keep abreast of inflation changes, the 1099-K thresholds, and timing for ERC claims. Proactive planning helps avoid surprises during the next filing season.