Compliance
US Compliance Essentials: New IRS Guidance & Reliefs to Know for 2025-2026
The IRS has recently issued multiple guidance items and reliefs—on 1099-K thresholds, remittance transfer tax penalties, and more—that demand attention from businesses and individuals alike.
By NomadicTax Research Team • 5-8 min read • November 14, 2025
## Overview of Key Compliance Changes
### Form 1099-K Threshold Reverts to $20,000
Under the OBBBA, the threshold for reporting via **Form 1099-K** (for payment card or third-party network transactions) dropped back to **$20,000**. This change means more individuals and small business owners issuing goods/services may receive 1099-Ks and need to report those amounts.([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
### Employee Retention Credit (ERC) Limitations for Late Claims
IRS Fact Sheet 2025-07 addresses limitations on credits and refunds for ERC claims filed after **January 31, 2024**, specifically for Q3 and Q4 of 2021. Late submissions may see reduced or denied refunds.([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
### Transition Relief for Car Loan Interest Reporting
Businesses required to report **car loan interest** under the OBBBA are granted **penalty relief** during the transition, per **Notice 2025-57**, particularly important for lenders beginning new reporting obligations in 2025.([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
### Remittance Transfer Tax Penalty Relief in 2026
Notice **2025-55** provides relief from failure-to-deposit penalties for the first **three quarters of 2026** for remittance transfer providers who fail to timely deposit under Section 4475 excise tax.([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
## Actionable Tips for Ensuring Compliance
- **Small business owners & gig workers**: Track all payment network transactions carefully. Even amounts under $600 may now be reportable under Form 1099-K, and misreporting can lead to IRS attention.
- **Tax preparers**: Keep an eye on ERC filings—late claims will require proof of eligibility and may only qualify for limited benefits. Maintain detailed records, invoices, and documents to support any credit claimed.
- **Lenders and vehicle dealers**: Prepare internal systems to capture interest payments in 2025 for new reporting. Work with tax counsel to understand qualifying interests; avail reliefs where applicable.
- **Remittance providers**: If you are subject to the new excise tax and burden of depositing tax payments, ensure your deposit schedules are aligned and apply for reliefs where possible if deadlines were or might be missed.
## Example Scenarios
- **Freelancer earning payments via payment app**: Once your monthly network payments total over $1500 or aggregate $20,000 in a year, expect a 1099-K. Plan to set aside for taxes.
- **Credit-claiming business filing late**: If you missed filing by Jan 31, 2024 for ERC in Q3/Q4 2021, prepare to show why late (e.g. illness, systems delay) and verify if Fact Sheet 2025-07 allows reduced credit.
- **Remittance service in early 2026**: If unable to deposit required tax dues on time, check if you meet reasonable cause safe harbor under Notice 2025-55. Document attempts to comply.
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Staying ahead of these compliance changes avoids penalties, maximizes eligible reliefs, and ensures your tax posture stays strong amid evolving US regulation.