New information reporting instructions for 2026 require businesses to review vendor records, update payroll and accounting tracking, and prepare for an IRS transition from FIRE to IRIS before the 2027 filing season. Learn about these changes and the steps you should take now to be ready.
1099 Reporting Threshold Increases to $2,000
The general reporting threshold for certain payments reported on Forms 1099-NEC and 1099-MISC is increasing from $600 to $2,000 per payee under the One Big Beautiful Bill Act (OBBBA). The new threshold does not apply to every type of Form 1099 payment, because certain payments remain subject to different reporting thresholds or requirements. The $2,000 threshold will be adjusted for inflation beginning in 2027.
For third-party settlement organizations, the Form 1099-K reporting threshold is more than $20,000 and more than 200 transactions. Previously planned lower reporting thresholds have been repealed.
Form Changes - 1099-NEC, 1099-MISC and 1099-K
Beginning with 2026 reporting, Forms 1099-NEC and 1099-MISC include new fields for reporting cash tips, Treasury Tipped Occupation Codes and qualified overtime compensation. Form 1099-K also includes new fields for reporting cash tips and Treasury Tipped Occupation Codes. Businesses with affected payees should separately track this information throughout 2026 rather than waiting until year-end reporting.
Form W-2 Changes
The 2026 Form W-2 includes several new reporting requirements. Box 12 includes new Code TP for cash tips reported to the employer, Code TT for qualified overtime compensation, and Code TA for qualifying employer contributions to Trump Accounts. Qualified overtime compensation generally does not equal total overtime wages paid. For example, for overtime paid at time-and-a-half, generally only the additional one-half portion is qualified overtime compensation. The new deduction does not make overtime or tips exempt from normal payroll tax and withholding requirements.
A new Box 14b is used to report applicable Treasury Tipped Occupation Codes. Employers with tipped employees or employees receiving qualified overtime should ensure their payroll systems are properly tracking the required information during 2026.
FIRE is Being Retired – Transition to IRIS
The IRS is retiring the Filing Information Returns Electronically (FIRE) system after December 31, 2026. Beginning with filing season 2027 (for tax year 2026 returns), the Information Returns Intake System (IRIS) will be the only IRS electronic filing system for information returns previously filed through FIRE, including current-year returns, prior-year returns and corrections.
Clients for whom AGH prepares and electronically files information returns do not need to obtain their own IRIS Transmitter Control Code (TCC) solely for returns transmitted by AGH CPAs & Advisors.
Businesses that prepare their own information returns should begin transitioning to IRIS now because an IRIS TCC is required. The free IRIS Taxpayer Portal allows businesses to manually enter forms or upload IRS-formatted CSV files, file up to 100 returns per submission, download recipient copies, submit corrections and extensions, and maintain issuer information.
This change does not affect Forms W-2/W-3, which continue to be filed with the Social Security Administration, or ACA information returns, which continue to be filed through the IRS AIR system.
Electronic Filing Reminder — 10-Return Threshold
The electronic filing threshold is 10 information returns in the aggregate. Applicable return types, including Forms W-2, are combined when determining whether the threshold is met; the 10-return threshold does not apply separately to each form type.
Other Form Changes
Several additional information returns have been revised for 2026. Changes include revisions to Form 1099-R related to IRA, SEP, SIMPLE and Trump Account reporting; new reporting on Form 1099-S for digital assets used in certain real estate transactions; and changes to Form 5498-QA related to Trump Account-to-ABLE rollovers.
New forms for 2026 include Form 1098-VLI, Vehicle Loan Interest Statement; Form 1099-LPS, Long-Term Care Premiums Paid Statement; and Form 5498-TA, Trump Account Contribution Information.
Forms 5498-ESA, 5498-QA and 5498-SA and their separate instructions have also been converted to continuous-use forms and will be revised only when changes are required.
What Businesses Should Do Now
Businesses should take proactive steps during 2026 to prepare for these reporting changes:
- Review vendor records and obtain current Forms W-9.
- Identify payees and employees who receive tips or qualified overtime and confirm those amounts are being separately tracked.
- Confirm payroll and accounting systems are prepared for the new 2026 reporting requirements.
- If you electronically file your own information returns, begin the IRIS transition and obtain an IRIS TCC well in advance of the 2027 filing season.
Preparing now can help reduce reporting issues, avoid last-minute system changes, and ensure compliance with the new requirements.
How We Can Help
AGH CPAs & Advisors is monitoring these developments and can help your organization prepare for the 2026 reporting changes.
Contact our team if you have questions about payroll reporting, information return filing requirements, or the transition to IRIS.
Senior Vice President
Outsourcing Services
Cindy McSwain leads AGH’s outsourcing services group. Her team provides payroll, accounting, funds disbursement, controller, and other financial outsourcing services to numerous clients throughout the U.S. Prior to joining the outsourcing group, Cindy served AGH’s audit clients for 10 years, working with a wide range of middle-market, closely held and family-owned organizations.
Her current clients cross many industry sectors, including manufacturing and distribution, restaurants, retailers, medical and not-for-profit. She has participated in numerous SEC filings and public registrations and has experience in mergers and acquisitions. Cindy is a certified public accountant and a member of both the American Institute of Certified Public Accountants and the Kansas Society of Certified Public Accountants.