Law changes
What changed, and when it took effect.
Amendments and new rules that affect business owners, in plain English, with the effective date and the source of each change.
JUL4
1099-NEC reporting threshold rises from $600 to $2,000
For payments made after December 31, 2025, businesses report payments to independent contractors on Form 1099-NEC when they total $2,000 or more in a year, up from $600. The threshold is adjusted for inflation after 2026.
MAR26Beneficial ownership reporting narrowed to foreign companies
In March 2025, FinCEN issued an interim final rule that removed beneficial ownership information reporting for companies created in the United States and for U.S. persons, limiting the requirement to certain foreign reporting companies.