Backup Withholding on Third Party Network Transactions

What the source reports

This document contains final regulations governing backup withholding on reportable payments with respect to third party network transactions.

The final regulations reflect recent changes to the statutory law that affect the backup withholding requirements for third party settlement organizations who make payments in settlement of third party network transactions.

Effective date: These regulations are effective on August 10, 2026.

Issuing agencies: Treasury Department, Internal Revenue Service.

Federal Register document number: 2026-16269.

Federal Register citation: 91 FR 51391.

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