IRS Eases Paperwork for Businesses, Tweaks Gamblers' Loss Deductions
Published Date: 4/17/2026
Proposed Rule
Summary
The IRS wants to raise the dollar amount that triggers reporting payments to certain payees, making it easier for businesses to handle paperwork. They’re also tweaking rules about how much you can claim for gambling losses. These changes could save time and hassle for businesses and gamblers, with comments open until June 16, 2026.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Reporting & Backup Withholding Threshold Raised
If you run a business or make payments in the course of a trade or business, the dollar threshold that triggers information reporting and backup withholding is raised to $2,000 for calendar year 2026 and will be indexed for inflation in later years. This change applies to payments made on or after January 1, 2026, is estimated to affect about 3.6 million payors, and the IRS projects an aggregate reduction in filing burden of about $982 million (2024 dollars) for calendar year 2027.
Wagering Loss Deduction Cut to 90%
If you itemize and claim a deduction for gambling (wagering) losses, your deduction is limited to 90 percent of your wagering losses and only to the extent of wagering gains for taxable years beginning after December 31, 2025. The IRS projects about 673,000 taxpayers will claim an itemized deduction for wagering losses for tax year 2026.
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Key Dates
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