Internal Revenue Bulletin 2026-13 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2026–13
March 23, 2026
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
Notice 2026-4, page 726.
This notice request comments on whether the requirements
that brokers currently must meet to furnish certain payee
statements to their customers in an electronic format and
thereafter be treated as timely furnishing these statements
should be modified and, if so, what those modifications should
be. This notice also requests comments on whether the Trea-
sury Department and the IRS should modify the electronic
furnishing requirements applicable to any persons other than
brokers required to furnish other payee statements.
REG-105064-25, page 735.
These proposed regulations would enable brokers to furnish
payee statements to their customers reflecting information
reported to the IRS on Form 1099-DA, Digital Asset Pro-
ceeds From Broker Transactions (1099-DA statements) in an
electronic format in lieu of on paper pursuant to an optional
process for obtaining the customer’s consent. Under this
process, brokers would not be required to offer customers
the choice of receiving the 1099-DA statements on paper
(or the ability to withdraw previously provided consents for
electronic furnishing) but instead could terminate their rela-
tionship with customers that do not provide this consent.
The proposed rules would, however, require brokers to meet
certain enhanced electronic notice and delivery requirements
and to provide customer access to the statements.
REG-117002-25, page 761.
The proposed regulations are to implement section 6434 of
the Internal Revenue Code, enacted by Congress in Public
Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known
as the One, Big, Beautiful Bill Act of 2025. Section 6434
authorizes the Secretary of the Treasury to make a one-time
$1,000 pilot program contribution to the Trump account of
an eligible child for whom a pilot program election is made.
The proposed regulations provide guidance on the effects of
making an election under section 6434 and the rules for the
time and manner for making such election.
EMPLOYEE PLANS
REG-117270-25, page 772.
The proposed regulations provide general requirements for
a Trump account under section 530A and rules for making
an election to open an initial Trump account and also reserve
additional sections for further guidance on Trump accounts.
INCOME TAX
REG-108921-25, page 756.
This document proposes to remove regulations identifying
certain partnership related-party basis adjustment transac-
tions and substantially similar transactions as transactions of
interest, a type of reportable transaction.
Rev. Proc. 2026-15, page 729.
This revenue procedure provides: (1) two tables of limitations
on depreciation deductions for owners of passenger auto-
mobiles placed in service by the taxpayer during calendar
year 2026; and (2) a table of dollar amounts that must be
used to determine income inclusions by lessees of passen-
ger automobiles with a lease term beginning in calendar year
2026. The tables detailing these depreciation limitations and
amounts used to determine lessee income inclusions reflect
the automobile price inflation adjustments required by sec-
tion 280F(d)(7). For purposes of this revenue procedure, the
term “passenger automobiles” includes trucks and vans.
Rev. Proc. 2026-16, page 733.
Generally, U.S. citizens or resident aliens living and working
abroad are taxed on their worldwide income. However, if
their tax home is in a foreign country and they meet either
the bona fide residence test or the physical presence test,
they can choose to exclude from their income a limited
amount of their foreign earned income (up to $130,000 for
2025). Both the bona fide residence test and the physical
presence test contain minimum time requirements. Reve-
nue Procedure 2026-16 provides a waiver under section
Finding Lists begin on page ii.

911(d)(4) for the time requirements for individuals electing
to exclude their foreign earned income who must leave a for-
eign country because of war, civil unrest, or similar adverse
conditions in that country. Rev. Proc. 2026-16 adds Haiti,
Ukraine, Democratic Republic of the Congo, South Sudan,
Iraq, Lebanon, and Mali to the list of waiver countries for
tax year 2025 for which the minimum time requirements
are waived.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
March 23, 2026 Bulletin No. 2026–13

Part III
Request for Comments on
Electronic Furnishing of
Certain Payee Statements
Notice 2026-4
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Reve-
nue Service (IRS) request comments on
whether the requirements that brokers cur-
rently must meet to furnish certain payee
statements to their customers in an elec-
tronic format and thereafter be treated as
timely furnishing these statements should
be modified and, if so, what those modifi-
cations should be.
This notice also requests comments on
whether the Treasury Department and the
IRS should modify the electronic furnish-
ing requirements applicable to any per-
sons other than brokers required to furnish
other payee statements.
SECTION 2. BACKGROUND
.01 In General.
Information reporting requirements
under the Internal Revenue Code (Code)
and regulations thereunder
1
generally
require third parties with information
about transactions affecting the taxable
income of persons subject to U.S. tax to
file information returns with the IRS to
report those transactions along with cer-
tain identifying information about such
persons, including a taxpayer identifica-
tion number (TIN). These information
reporting requirements also require such
third parties to furnish written statements
(payee statements) to each person (payee)
about whom an information return was
filed showing the information that was
reported to the IRS.
These information reporting require-
ments are important to voluntary tax com-
pliance and effective tax administration.
The information returns give taxpayers a
record that can be used to help accurately
calculate and report the taxpayers’ taxable
transactions and deductions. The informa-
tion returns also allow the IRS to compare
the information reported to the IRS with
tax returns filed by taxpayers whose iden-
tifying number is shown on the informa-
tion returns and enable the IRS to focus
its resources on taxpayers who are more
likely to have underreported their income.
To enforce the timely compliance with
these information reporting requirements,
sections 6721 and 6722, respectively,
impose penalties on these third parties
for the failure to file timely correct infor-
mation returns and the failure to furnish
timely correct payee statements. Section
6724(d)(1)

defines an information return
for this purpose by cross-referencing vari-
ous other sections of the Code that require
the filing of information returns. Simi-
larly, section 6724(d)(2)

defines a payee
statement by cross-referencing various
other sections of the Code that require the
furnishing of payee statements.
Section 401 of the Job Creation and
Worker Assistance Act of 2002 (JCWAA),
Public Law 107-147, 116 Stat. 21 (March
9, 2002), permits the electronic furnishing
of any payee statement required to be fur-
nished under subpart B of part III of sub-
chapter A of chapter 61 of the Code (that
is, sections 6041 through 6050AA), if the
payee consents to receive the statement in
a manner similar to the one permitted by
regulations under section 6051 or in such
other manner as provided by the Secretary
of the Treasury or the Secretary’s delegate
(Secretary). Consequently, payee state-
ments of this kind may be provided elec-
tronically only if the payee provides con-
sent in the manner provided by the section
6051 regulations or as otherwise provided
by the Secretary.
The Electronic Signatures in Global
and National Commerce Act (E-SIGN
Act), Public Law 106-229, 114 Stat. 464
(June 30, 2000), generally requires con-
sumer consent and a demonstration that
the consumer can receive materials elec-
tronically before a person legally required
to provide written disclosures can deliver
such disclosures to that consumer elec-
tronically. Because payee statements
required under Code provisions are legally
required written disclosures, payee state-
ments under Code provisions other than
sections 6041 through 6050AA may be
provided electronically only if the payee
provides consent in the manner provided
by the E-SIGN Act.
.02 Section 6051 Rules Permitting
Electronic Furnishing of Payee Statements
Prior to the enactment of the JCWAA,
the Treasury Department and the IRS
issued proposed and temporary regula-
tions under section 6051. See TD 8942,
66 FR 10191 and REG-107186-00, 66
FR 10247 (February 14, 2001). The tem-
porary and proposed regulations mirrored
each other and generally required employ-
ers to comply with specific notice and
consent requirements before they could
electronically furnish payee statements to
employee-recipients on Forms W-2, Wage
and Tax Statement. In 2004, the Treasury
Department and the IRS published final
regulations that generally retained the
same notice and consent requirements.
See TD 9114, 69 FR 7567 (February
18, 2004). Under § 31.6051-1(j)(1), an
employer furnishing payee statements in
an electronic format to employee-recipi-
ents is treated as timely furnishing payee
statements required by section 6051 if
the employer complies with requirements
for consent, disclosures, format, notice,
access period, and consent withdrawal set
forth in the regulations.
(1) Consent. The section 6051 reg-
ulations provide that a recipient must
have affirmatively consented to receive
the payee statement electronically and
must not have withdrawn that consent
before the statement is furnished. Under
§ 31.6051-1(j)(2)(i), the consent itself or,
alternatively, the recipient’s confirmation
of that consent, must be made electroni-
cally in a manner that reasonably demon-
strates that the recipient can access the
statement in the electronic format in which
it will be furnished to the recipient. Under
§ 31.6051-1(j)(2)(iii), a furnisher must
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code, the Income Tax Regulations (26 CFR part 1), or to the Employment Taxes and Collection of Income
Tax at Source Regulations (26 CFR part 31).
March 23, 2026 726 Bulletin No. 2026–13

take certain actions, including obtaining
from the recipient a new electronic con-
sent or confirmation of consent to receive
the statement electronically, if a change in
the hardware or software needed to access
a statement creates a material risk that the
recipient will not be able to access the
statement.
(2) Required disclosures. Under
§ 31.6051-1(j)(3), prior to or at the time
the recipient consents to receive a state-
ment electronically, the furnisher must
provide a clear and conspicuous statement
to the recipient containing certain disclo-
sures, including about the scope and dura-
tion of consent, how to withdraw consent,
and a description of the hardware and soft-
ware required to access, print, and retain
the Form W-2.
(3) Format. Section 31.6051-1(j)(4)
requires that the electronic version of a
statement furnished to a recipient contain
all required information and comply with
applicable revenue procedures relating to
substitute statements. The revenue pro-
cedure relating to substitute statements
is generally updated annually and is also
reproduced as IRS Publication 1179, Gen-
eral Rules and Specifications for Substi-
tute Forms 1096, 1098, 1099, 5498, and
Certain Other Information Returns. See
Rev. Proc. 2025-22, 2025-30 I.R.B. 200,
and Publication 1179 published July 21,
2025.
(4) Notice
. Under § 31.6051-1(j)(5)(i),
if the statement is furnished on a website,
the furnisher must notify the recipient that
the statement is posted on the website.
This notice may be delivered by mail, pri-
vate delivery service, electronic mail, or
in person and must provide instructions to
the recipient on how to access and print
the statement. Under § 31.6051-1(j)(5)
(ii), if an electronic notice is returned as
undeliverable, and the correct electronic
address cannot be obtained, then the fur-
nisher must furnish the notice by mail,
private delivery service, or in person
within 30 days after the electronic notice
is returned. Under § 31.6051-1(j)(5)(iii),
if a furnisher corrects a recipient’s state-
ment, the furnisher must furnish the cor-
rected statement electronically. If a fur-
nisher later posts corrected statements on
the website, the furnisher must notify the
recipients of that posting within 30 days
after the posting.
(5) Access period. The section 6051
regulations generally require the furnisher
to maintain access to the statements on
the website through October 15 of the
year following the calendar year to which
the statements relate. In addition, under
§ 31.6051-1(j)(6), the furnisher gener-
ally must maintain access to corrected
statements that are posted on the website
through October 15 of the year following
the calendar year to which the statements
relate or for 90 days after that posting,
whichever is later.
(6) Consent withdrawal. Section
31.6051-1(j)(2)(ii) provides the consent
requirement is not satisfied if the recipi-
ent withdraws the consent and the with-
drawal takes effect before the statement
is furnished. Under § 31.6051-1(j)(7), if
a recipient withdraws consent to receive
a statement electronically and the with-
drawal takes effect before the statement is
furnished electronically, a paper statement
must be furnished.
.03 Rules Permitting Electronic Fur-
nishing for Other Payee Statements
Section 4.6 of Publication 1179 pro-
vides instructions for electronic delivery
of certain recipient statements. Under
these procedures, if a person is required
to furnish a written statement (Copy B
or an acceptable substitute) to a recipi-
ent, the furnisher may furnish the state-
ment electronically instead of on paper
if the furnisher complies with the provi-
sions in Sections 4.6.2 and 4.6.3 of Pub-
lication 1179, which generally implement
the requirements of § 31.6051-1(j) and
applies those requirements to additional
payee statements.
.04 Rules Permitting Composite Payee
Statements
A composite payee statement is one in
which two or more required payee state-
ments (for example, payee statements
associated with information reported to
the IRS on Forms 1099-INT, Interest
Income, and 1099-DIV, Dividends and
Distributions) are furnished to the recip-
ient on one document.
Section 1.6045-1(k)(3)(i) permits bro-
kers to include information reported to the
IRS on Form 1099-B, Proceeds from Bro-
ker and Barter Exchange Transactions,
on a payee statement that is combined
with additional payee statements reflect-
ing information reported to the IRS on
certain other forms (Form 1099-B com-
posite statement) as long as the additional
payee statements are all based on the
same relationship of broker to customer
as the statement reflecting the information
reported on Form 1099-B. Section 4.2 of
Publication 1179 provides that a Form
1099-B composite statement is permitted
for reportable payments consisting of the
proceeds of brokerage and barter transac-
tions, dividends, interest, original issue
discount, patronage dividends, and roy-
alties. Section 4.2.1 of Publication 1179
lists the following forms as permitted to
be included on a Form 1099-B composite
statement, when one broker is reporting
more than one of these payments during a
calendar year to the same payee statement
recipient:
• Form 1099-B
• Form 1099-DA
• Form 1099-DIV (except for section
404(k) dividends)
• Form 1099-INT (except for interest
reportable under section 6041)
• Form 1099-MISC, Miscellaneous
Information (only for royalties or
substitute payments in lieu of divi-
dends and interest)
• Form 1099-OID, Original Issue Dis-
count
• Form 1099-PATR, Taxable Distribu-
tions Received From Cooperatives
• Form 1099-S, Proceeds from Real
Estate Transactions (only for royal-
ties)
A broker may not include any other
payee statements reflecting information
reported to the IRS on other Forms 1099
on a Form 1099-B composite statement.
.05 Proposed Rules Permitting Elec-
tronic Furnishing of 1099-DA Statements
Section 6045 and the regulations there-
under generally require brokers to file
information returns with respect to sales
of digital assets and certain other trans-
actions effected by the broker on behalf
of each customer. The information is
required to be filed with the IRS on Form
1099-DA, Digital Asset Proceeds From
Broker Transactions. Because transac-
tions involving digital assets are primarily
conducted electronically and digital asset
customers therefore are accustomed, and
may expect, to communicate with their
brokers solely in electronic form, the
Treasury Department and the IRS rec-
Bulletin No. 2026–13 727 March 23, 2026

March 23, 2026 728 Bulletin No. 2026–13
ognize that furnishing payee statements
relating to digital asset transactions in
paper form could impose potentially sig-
nificant compliance burdens on brokers
without providing corresponding benefits
to customers.
To that end, the Treasury Department
and the IRS are publishing proposed reg-
ulations in the Federal Register 91 FR
10983 that would provide brokers required
to furnish payee statements to their cus-
tomers reflecting information reported
to the IRS on Form 1099-DA (1099-DA
statements) with an optional alternative
process for obtaining consent from these
customers to receive these statements in
an electronic format in lieu of on paper.
These proposed rules differ from the cur-
rent rules under section 6051 to take into
account that the relationship between the
broker and the customer may be entirely
in electronic form, and to enhance the
likelihood that the customer is aware of
and accesses the 1099-DA statement.
SECTION 3. REQUEST FOR
COMMENTS
.01 Electronic Furnishing of State-
ments Includable on Form 1099-B Com-
posite Statements
The Treasury Department and the IRS
have received comments asserting that the
current rules requiring payee statements
to be furnished on paper if the statement
recipient does not affirmatively consent
(or withdraws a previously provided con-
sent) to receiving the statement electron-
ically are impractical and impose undue
burdens on furnishers. The Treasury
Department and the IRS are aware that in
addition to furnishers experiencing these
burdens, recipients have become increas-
ingly able to access electronically fur-
nished payee statements. Compared to the
early 2000s, most U.S. adults today say
they use the internet (95%), have a smart-
phone (90%), or subscribe to high-speed
internet at home (80%).
2
Accordingly, it
is likely that many customers would be
fully capable of accessing electronically
furnished payee statements. At the same
time, there may be customers whose facil-
ity with using a smartphone or computer is
limited and who prefer to receive import-
ant documents in paper form.
The Treasury Department and the IRS
are considering modifying current guid-
ance setting forth the requirements that
must be met before brokers can electroni-
cally furnish 1099-B statements and other
payee statements that can be included
on Form 1099-B composite statements.
Accordingly, this notice requests com-
ments on how the rules permitting brokers
to electronically furnish payee statements
that can be included on a Form 1099-B
composite statement can be modified to
reduce burden while ensuring all recip-
ients are able to access the payee state-
ments.
In particular, the Treasury Department
and the IRS invite comments on how cus-
tomers who do not communicate with
their brokers solely through electronic
means would be able to access these elec-
tronically furnished payee statements. In
addition, comments are requested on the
extent to which the customer population
that receives payee statements includable
on Form 1099-B composite statements is
different from the customer population
that will receive 1099-DA statements, and
whether those differences should affect
the consent rules applicable to electronic
furnishing. For example, a customer that
transacts electronically, or whose advisor
transacts electronically, may still prefer
to receive 1099-B statements or other
broker payee statements in paper form or
may find it difficult to access payee state-
ments provided in electronic form, poten-
tially including elderly customers or per-
sons with disabilities. Comments should
address how modifications to the current
rules would maintain adequate procedures
to ensure that customers actually receive
these important communications in a
manner that they can use.
Currently, Form 1099-MISC payee
statements reporting rewards such as
those received by customers as a result of
staking digital assets that use a proof-of-
stake validation model cannot be included
in 1099-B composite statements because
they are not included in Section 4.2.1 of
Publication 1179. The Treasury Depart-
ment and the IRS are aware some custom-
ers will receive these Form 1099-MISC
payee statements for staking rewards as
well as 1099-B composite statements
from the same broker. Accordingly, the
Treasury Department and the IRS also
request comments on whether the list of
forms permitted to be included on 1099-B
composite statements should be updated
to include Form 1099-MISC for staking
rewards.
.02 Electronic Furnishing of Other
Statements
The Treasury Department and the IRS
have also received requests to expand the
ability of other parties responsible for fil-
ing information returns (for example, pay-
ers and withholding agents) to electroni-
cally furnish payee statements and similar
documents not permitted under current
guidance to be furnished electronically to
recipients.
3

The Treasury Department and the IRS
invite comments discussing whether (and
how) the rules governing the electronic
furnishing of any other payee statements
required under sections 6041 through
6050AA should be revised. This notice
requests comments on the nature of the
recipient base for such payee statements,
how filers currently communicate with
those recipients and provide any other
required disclosures, whether directly or
through third-party service providers, and
the extent to which such payee statements
are currently provided in paper versus
electronic form. The Treasury Department
and the IRS also request comments on the
extent to which recipients of such payee
statements have demonstrated either com-
fort with electronic payee statements or a
preference for payee statements in paper
form, and any issues filers have experi-
enced when furnishing these statements
in either format that would be alleviated
or exacerbated if the other format were
used. Similarly, the Treasury Department
and the IRS also request comments from
taxpayers who receive these payee state-
2
See Pew Research Center, Americans’ Use of Mobile Technology and Home Broadband, https://www.pewresearch.org/internet/2024/01/31/americans-use-of-mobile-technolo-
gy-and-home-broadband/ (accessed March 4, 2026).
3
See e.g., Information Reporting Program Advisory Committee Comments on Notice 2014-18 on Items for 2014-15 Priority Guidance Plan, Comment ID IRS-2014-0011-0028, available at:
https://www.regulations.gov.

Bulletin No. 2026–13 729 March 23, 2026
ments on any issues they have encoun-
tered receiving these payee statements
in either paper or electronic form. Com-
ments are also requested on how to ensure
that recipients have validly consented to
receipt of payee statements in electronic
form. Finally, comments are requested on
how best to mitigate burdens on filers of
those payee statements and the benefits to
filers of more readily obtaining and main-
taining consent to provide payee state-
ments in electronic form.
This notice also requests comments
on the electronic furnishing of payee
statements required by other sections of
the Code. In addition to the comments
requested in the previous paragraph, the
Treasury Department and the IRS spe-
cifically request comments addressing
how any recommended changes to the
electronic furnishing rules for these other
payee statements would be consistent with
the E-SIGN Act.
Finally, the Treasury Department and
the IRS invite comments on whether
there are any circumstances under which
it would be inappropriate to change the
existing notice and consent requirements
for electronic furnishing of payee state-
ments.
SECTION 4. ADDRESSES TO SEND
COMMENTS
Written comments should be submitted
by May 23, 2026. Consideration will be
given, however, to any written comment
submitted after May 23, 2026, if such
consideration will not delay the issuance
of guidance. The subject line for the com-
ments should include a reference to Notice
2026-4. Comments may be submitted in
one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at https:// www.
regulations.gov (type IRS-2026-
0067) in the search field on the reg-
ulations.gov homepage to find this
notice and submit comments).
(2) Send paper submissions to: Inter-
nal Revenue Service, CC:PA:01:PR
(Notice 2026-4), Room 5503, P.O.
Ben Franklin Station, Washington,
DC 20044.
All commenters are strongly encour-
aged to submit comments electronically.
The Treasury Department and the IRS
will publish for public availability any
comment submitted electronically, or
on paper, to its public docket on https://
www.regulations.gov.
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice is
the Office of the Associate Chief Counsel
(Procedure & Administration). For further
information regarding this notice, please
call (202) 317-3400 (not a toll-free num-
ber).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 280F; 1.280F-7.)
Rev. Proc. 2026-15
SECTION 1. PURPOSE
This revenue procedure provides: (1)
two tables of limitations on depreciation
deductions for owners of passenger auto-
mobiles placed in service by the taxpayer
during calendar year 2026; and (2) a table
of dollar amounts that must be used to
determine income inclusions by lessees of
passenger automobiles with a lease term
beginning in calendar year 2026. These
tables reflect the automobile price infla-
tion adjustments required by § 280F(d)(7)
of the Internal Revenue Code (Code).
1
For
purposes of this revenue procedure, the
term “passenger automobiles” includes
trucks and vans.
SECTION 2. BACKGROUND
.01 For owners of passenger automo-
biles, § 280F(a) imposes dollar limitations
on the depreciation deduction for the year
the taxpayer places the passenger auto-
mobile in service and for each succeeding
year. For passenger automobiles placed in
service after 2018, § 280F(d)(7) requires
the Internal Revenue Service to increase
the amounts allowable as depreciation
deductions by a price inflation adjustment
amount that is determined using the auto-
mobile component of the Chained Con-
sumer Price Index for All Urban Consum-
ers published by the Department of Labor
(C-CPI-U).
.02 Section 168(k), as amended by
Public Law 119-21, 139 Stat. 72 (July 4,
2025), commonly known as the One, Big,
Beautiful Bill Act (OBBBA), applies to
property acquired and placed in service
after January 19, 2025.
2
Section 168(k)
(1), as amended by the OBBBA, allows an
additional first year depreciation deduc-
tion under § 167(a) equal to 100 percent
of the property’s adjusted basis for the
taxable year in which qualified property,
as defined in § 168(k)(2), is placed in ser-
vice.
Section 168(k), as in effect prior to
amendment by the OBBBA (former §
168(k)), applies to property acquired after
September 27, 2017, and before January
20, 2025, which is placed in service before
January 1, 2027. Former section 168(k)
(1) provides that the § 168(k) additional
first year depreciation deduction is equal
to the applicable percentage of the prop-
erty’s adjusted basis. Pursuant to former §
168(k)(6)(A), the applicable percentage is
100 percent for qualified property placed
in service after September 27, 2017, and
before January 1, 2023, and is phased
down 20 percent each year thereafter for
property placed in service through Decem-
ber 31, 2026. Accordingly, the applicable
percentage for qualified property acquired
after September 27, 2017, and before
January 20, 2025, and placed in service
during calendar year 2026 is 20 percent.
For qualified property acquired and
placed in service after September 27,
2017, § 168(k)(2)(F)(i) increases the first-
year depreciation allowed under § 280F(a)
(1)(A)(i) by $8,000.
.03 Tables 1 and 2 of this revenue pro-
cedure provide depreciation limitations for
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).
2
See section 70301(c) of the OBBBA. In determining whether property is acquired after January 19, 2025, for purposes of section 70301(c) of the OBBBA, the taxpayer applies rules consis-
tent with §§ 1.168(k)-2(b)(5) and 1.1502-68(a) through (d). See section 3.03 of Notice 2026-11, 2026-6 I.R.B. 491.

March 23, 2026 730 Bulletin No. 2026–13
passenger automobiles placed in service
by the taxpayer during calendar year 2026.
Table 1 provides depreciation limitations
for passenger automobiles acquired by the
taxpayer after September 27, 2017, and
placed in service by the taxpayer during
calendar year 2026, for which the § 168(k)
additional first year depreciation deduc-
tion applies. The depreciation limitations
in Table 1 apply regardless of whether the
§ 168(k) additional first year depreciation
deduction is allowed under former § 168(k)
or § 168(k) as amended by the OBBBA.
Table 2 provides depreciation limitations
for passenger automobiles placed in ser-
vice by the taxpayer during calendar year
2026 for which no § 168(k) additional first
year depreciation deduction applies. The
§ 168(k) additional first year depreciation
deduction does not apply for 2026 if the
taxpayer: (1) did not use the passenger
automobile during 2026 more than 50 per-
cent for business purposes; (2) elected out
of the § 168(k) additional first year depre-
ciation deduction pursuant to § 168(k)
(7) for the class of property that includes
passenger automobiles; (3) acquired a used
passenger automobile and the acquisition
of such property did not meet the acqui-
sition requirements in § 168(k)(2)(E) and
§ 1.168(k)-2(b)(3)(iii) of the Income Tax
Regulations;
3
or (4) acquired the passenger
automobile before September 28, 2017.
.04 Section 280F(c)(2) requires a
reduction to the amount allowable as a
deduction to the lessee of a leased passen-
ger automobile. Pursuant to § 280F(c)(3),
the reduction must be substantially equiv-
alent to the limitations on the depreciation
deductions imposed on owners of passen-
ger automobiles. Under § 1.280F-7(a), this
reduction is accomplished by requiring
the lessee to include in gross income an
amount determined by applying a formula
to a dollar amount obtained from a table.
.05 Table 3 of this revenue procedure
provides the dollar amount used by les-
sees of passenger automobiles with a lease
term beginning in 2026 to determine the
income inclusion amount for those pas-
senger automobiles. The table provides
dollar amounts for a range of passenger
automobile fair market values.
SECTION 3. SCOPE
.01 The limitations on depreciation
deductions in Tables 1 and 2 in section
4.01(2) of this revenue procedure apply to
passenger automobiles, other than leased
passenger automobiles, that are placed in
service by the taxpayer in calendar year
2026 and continue to apply for each tax-
able year that the passenger automobile
remains in service.
.02 The dollar amounts in Table 3 of
this revenue procedure apply to leased
passenger automobiles with a lease term
beginning in calendar year 2026 and con-
tinue to apply for each taxable year during
the lease.
.03 For other recent calendar years, see
Rev. Proc. 2021-31, 2021-34 I.R.B. 324,
for passenger automobiles placed in ser-
vice or leased during calendar year 2021;
Rev. Proc. 2022-17, 2022-13 I.R.B. 930,
for passenger automobiles placed in ser-
vice or leased during calendar year 2022;
Rev. Proc. 2023-14, 2023-6 I.R.B. 466,
for passenger automobiles placed in ser-
vice or leased during calendar year 2023;
Rev. Proc. 2024-13, 2024-9 I.R.B. 678,
for passenger automobiles placed in ser-
vice or leased during calendar year 2024;
and Rev. Proc. 2025-16, 2025-11 I.R.B.
1100, for passenger automobiles placed
in service or leased during calendar year
2025.
SECTION 4. APPLICATION
.01 Limitations on Depreciation
Deductions for Certain Automobiles.
(1) Amount of the inflation adjustment.
Under § 280F(d)(7)(B)(i), the automobile
price inflation adjustment for any calendar
year is the percentage (if any) by which the
C-CPI-U automobile component for Octo-
ber of the preceding calendar year exceeds
the automobile component of the CPI (as
defined in § 1(f)(4)) for October of 2017,
multiplied by the amount determined
under § 1(f)(3)(B). The amount deter-
mined under § 1(f)(3)(B) is the amount
obtained by dividing the new vehicle
component of the C-CPI-U for calendar
year 2016 by the new vehicle component
of the CPI for calendar year 2016, where
the C-CPI-U and the CPI for calendar year
2016 means the average of such amounts
as of the close of the 12-month period end-
ing on August 31, 2016. Section 280F(d)
(7)(B)(ii) defines the term “C-CPI-U
automobile component” as the automo-
bile component of the Chained Consumer
Price Index for All Urban Consumers as
described in § 1(f)(6). The product of
the October 2017 CPI new vehicle com-
ponent (144.868) and the amount deter-
mined under § 1(f)(3)(B) (0.694370319)
is 100.592. The new vehicle component
of the C-CPI-U released in December
2025 was 124.199 for October 2025. The
October 2025 C-CPI-U new vehicle com-
ponent exceeded the product of the Octo-
ber 2017 CPI new vehicle component and
the amount determined under § 1(f)(3)(B)
by 23.607 (124.199 - 100.592). The per-
centage by which the C-CPI-U new vehi-
cle component for October 2025 exceeds
the product of the new vehicle component
of the CPI for October of 2017 and the
amount determined under § 1(f)(3)(B) is
23.468 percent (23.607/100.592 x 100%),
the automobile price inflation adjustment
for 2026 for passenger automobiles. The
dollar limitations in § 280F(a) are there-
fore multiplied by a factor of 0.23468, and
the resulting increases, after rounding to
the nearest $100, are added to the 2018
limitations to give the depreciation limita-
tions applicable to passenger automobiles
for calendar year 2026. This adjustment
applies to all passenger automobiles that
are placed in service in calendar year
2026.
(2) Amount of the limitation. Tables 1
and 2 of this revenue procedure contain
the depreciation limitation for each taxable
year for passenger automobiles a taxpayer
placed in service during calendar year
2026. Use Table 1 for a passenger automo-
bile to which the § 168(k) additional first
year depreciation deduction applies that
is acquired by the taxpayer after Septem-
ber 27, 2017, and placed in service by the
taxpayer during calendar year 2026. The
depreciation limitations in Table 1 apply
regardless of whether the § 168(k) addi-
tional first year depreciation deduction is
3
For a used passenger automobile acquired after January 19, 2025, the taxpayer applies rules consistent with the rules in § 1.168(k)-2(b)(3)(iii) to determine if the property meets the acqui-
sition requirements in § 168(k)(2)(E). See section 3.02 of Notice 2026-11, 2026-6 I.R.B. 491.

Bulletin No. 2026–13 731 March 23, 2026
allowed under former § 168(k) or § 168(k)
as amended by the OBBBA. Use Table 2
for a passenger automobile placed in ser-
vice by the taxpayer during calendar year
2026 for which no § 168(k) additional first
year depreciation deduction applies.
REV. PROC. 2026-15 TABLE 1
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER
SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2026,
FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year$ 20,300
2nd Tax Year$ 19,800
3rd Tax Year$ 11,900
Each Succeeding Year$ 7,160
REV. PROC. 2026-15 TABLE 2
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES
PLACED IN SERVICE DURING CALENDAR YEAR 2026 FOR WHICH NO § 168(k)
ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year$ 12,300
2nd Tax Year$ 19,800
3rd Tax Year$ 11,900
Each Succeeding Year$ 7,160
.02 Inclusions in Income of Lessees of
Passenger Automobiles.
A taxpayer must follow the procedures
in § 1.280F-7(a) for determining the inclu-
sion amounts for passenger automobiles
with a lease term beginning in calendar
year 2026. In applying these procedures,
lessees of passenger automobiles should
use Table 3 of this revenue procedure.

March 23, 2026 732 Bulletin No. 2026–13
REV. PROC. 2026-15 TABLE 3
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2026
Fair Market
Value of
Passenger
Automobile Over
Fair Market Value
of Passenger
Automobile Not
Over
1
st
Tax Year
During Lease
2
nd
Tax Year
During Lease
3
rd
Tax Year
During Lease
4
th
Tax Year
During Lease
5
th
Tax Year
During Lease &
Later
$62,000$64,000815212527
64,00066,0001938566676
66,00068,000296291108123
68,00070,0004086125149172
70,00072,00051109160191220
72,00074,00061133195232268
74,00076,00072156230274316
76,00078,00083179265316364
78,00080,00093203299358412
80,00085,000112244360431496
85,00090,000139302447535617
90,00095,000166361534639737
95,000100,000192420621743858
100,000110,0002325077529001,038
110,000120,0002866249261,1081,279
120,000130,0003397421,0991,3171,520
130,000140,0003928591,2731,5261,760
140,000150,0004469761,4471,7342,001
150,000160,0004991,0931,6211,9432,242
160,000170,0005531,2101,7952,1512,483
170,000180,0006061,3281,9682,3602,723
180,000190,0006591,4452,1422,5692,964
190,000200,0007131,5622,3162,7773,205
200,000210,0007661,6792,4902,9863,445
210,000220,0008201,7962,6643,1943,686
220,000230,0008731,9132,8383,4033,927
230,000240,0009262,0313,0123,6104,168
240,000250,0009802,1483,1853,8204,408
250,000260,0001,0332,2653,3604,0274,650
260,000270,0001,0862,3823,5344,2364,890
270,000280,0001,1402,4993,7084,4445,131
280,000290,0001,1932,6173,8814,6535,372
$290,000$300,0001,2472,7334,0564,8625,612
300,000310,0001,3002,8514,2295,0705,854
310,000320,0001,3532,9684,4035,2796,094
320,000330,0001,4073,0854,5775,4876,335
330,000340,0001,4603,2024,7515,6966,576
340,000350,0001,5143,3194,9255,9046,817

Bulletin No. 2026–13 733 March 23, 2026
Fair Market
Value of
Passenger
Automobile Over
Fair Market Value
of Passenger
Automobile Not
Over
1
st
Tax Year
During Lease
2
nd
Tax Year
During Lease
3
rd
Tax Year
During Lease
4
th
Tax Year
During Lease
5
th
Tax Year
During Lease &
Later
350,000360,0001,5673,4375,0986,1137,057
360,000370,0001,6203,5545,2736,3217,298
370,000380,0001,6743,6715,4466,5307,539
380,000390,0001,7273,7885,6216,7387,779
390,000400,0001,7813,9055,7946,9478,020
400,000410,0001,8344,0225,9697,1558,261
410,000420,0001,8874,1406,1427,3648,501
420,000430,0001,9414,2576,3167,5728,742
430,000440,0001,9944,3746,4907,7818,983
440,000450,0002,0474,4916,6647,9909,223
450,000460,0002,1014,6086,8388,1989,464
460,000470,0002,1544,7267,0118,4079,705
470,000480,0002,2084,8437,1858,6159,946
480,000490,0002,2614,9607,3598,82410,186
490,000500,0002,3145,0777,5339,03310,427
500,000and over2,3685,1947,7079,24110,668
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to
passenger automobiles placed in service
during calendar year 2026 or with a lease
term beginning in calendar year 2026.
SECTION 6. DRAFTING
INFORMATION
The principal authors of this notice are
personnel from the Office of Associate
Chief Counsel (Income Tax and Account-
ing). For further information regarding
this revenue procedure, please contact
the Office of the Associate Chief Counsel
(Income Tax and Accounting), Branch 7,
at (202) 317-7005 (not a toll-free number).
26 CFR 1.911-2: Qualified Individuals. (Also: Part
I, § 911.)
Rev. Proc. 2026-16
SECTION 1. PURPOSE
This revenue procedure provides infor-
mation to any individual who failed to
meet the eligibility requirements of sec-
tion 911(d)(1) of the Internal Revenue
Code (Code) for 2025 because of adverse
conditions in a foreign country.
SECTION 2. BACKGROUND
.01 Section 911 allows a “qualified
individual,” as defined in section 911(d)
(1), to elect to exclude from gross income
the foreign earned income and to exclude
or deduct the housing cost amount of such
individual.
.02 Section 911(d)(1) of the Code
defines the term “qualified individual” as
an individual whose tax home is in a for-
eign country and who is (A) a citizen of the
United States and establishes to the satis-
faction of the Secretary of the Treasury
that the individual has been a bona fide
resident of a foreign country or countries
for an uninterrupted period that includes
an entire taxable year, or (B) a citizen or
resident of the United States who, during
any period of 12 consecutive months, is
present in a foreign country or countries
during at least 330 full days.
.03 In addition, section 911(d)(4) of
the Code provides that an individual will
be treated as a qualified individual with
respect to a period in which the individual
was a bona fide resident of, or was present
in, a foreign country if the individual left
the country during a period for which the
Secretary of the Treasury, after consulta-
tion with the Secretary of State or their
delegate, determines that individuals were
required to leave because of war, civil
unrest, or similar adverse conditions that
precluded the normal conduct of business.
An individual must establish that but for
those conditions the individual could rea-
sonably have been expected to meet the
eligibility requirements.
.04 The Internal Revenue Service pre-
viously has listed countries for which the
eligibility requirements of section 911(d)
(1) of the Code are waived under section
911(d)(4) because of adverse conditions in
those countries. See Rev. Proc. 2025-17,
2025-13 I.R.B. 1382.
SECTION 3. SCOPE
.01 For 2025, the Secretary of the Trea-
sury, in consultation with the Secretary
of State, has determined that war, civil
unrest, or similar adverse conditions pre-
cluded the normal conduct of business in
the following countries beginning on the
specified date:

March 23, 2026 734 Bulletin No. 2026–13
Country Date of Departure On or After
Haiti January 1, 2025
Ukraine January 1, 2025
Democratic Republic of the Congo January 28, 2025
South Sudan March 7, 2025
Iraq June 11, 2025
Lebanon June 22, 2025
Mali October 30, 2025
For example, for purposes of section
911 of the Code, an individual who left
Haiti on or after January 1, 2025, will
be treated as a qualified individual with
respect to the period during which that
individual was a bona fide resident of,
or was present in, Haiti if the individual
establishes a reasonable expectation that
he or she would have met the requirements
of section 911(d) but for those conditions.
.02 To qualify for relief under section
911(d)(4) of the Code, an individual must
have established residency, or have been
physically present, in the foreign country
on or before the date that the Secretary of
the Treasury determines that individuals
were required to leave the foreign coun-
try. For example, individuals who first
established residency or were physically
present in Haiti after January 1, 2025, are
not eligible to qualify for the exception
provided in section 911(d)(4) of the Code
for 2025.
SECTION 4. APPLICATION
A taxpayer who needs assistance on
how to claim this exclusion, or on how
to file an amended return, should consult
the foreign earned income exclusion topic
at https://www.irs.gov/individuals/inter-
national-taxpayers/foreign-earned-in-
come-exclusion or contact a local IRS
office.
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kate Y. Hwa of the Office of
Associate Chief Counsel (International).
For further information regarding this
revenue procedure, contact Ms. Hwa on
(202) 317-5001 (not a toll-free call).

Bulletin No. 2026–13 735 March 23, 2026
Part IV
Notice of Proposed
Rulemaking
Electronic Furnishing
of Payee Statements
Regarding Digital Asset
Sales by Brokers
REG-105064-25
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing.
SUMMARY: This document contains
proposed regulations that would provide
digital asset brokers that are required to
furnish to their customers written state-
ments reflecting information provided to
the IRS with respect to digital asset sale
transactions with an alternative process
for obtaining consent from their custom-
ers to receive these statements in an elec-
tronic format without offering a paper
delivery alternative.
DATES: Written or electronic comments
and requests for a public hearing must be
received by May 5, 2026.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic submis-
sions via the Federal eRulemaking Portal
at https://www.regulations.gov (indicate
IRS and REG-105064-25) by following
the online instructions for submitting com-
ments. Requests for a public hearing must
be submitted as prescribed in the “Com-
ments and Requests for a Public Hearing”
section of this preamble. Once submitted
to the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish any
comments submitted electronically or on
paper to the public docket. Send paper
submissions to: CC:PA:01:PR (REG-
105064-25), Room 5503, Internal Reve-
nue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Roseann Cutrone of the Office
of the Associate Chief Counsel (Proce-
dure and Administration) at (202) 317-
6844 (not a toll-free number); concerning
submissions of comments and requests to
participate in the public hearing, the Pub-
lications and Regulations Section at (202)
317-6901 (not a toll-free number) or by
sending an email to publichearings@irs.
gov (preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed reg-
ulations that would amend regulations
under section 6045 of the Internal Revenue
Code (Code). Section 6045(a) provides
authority to the Secretary of the Treasury
or the Secretary’s delegate (Secretary) to
require every person doing business as
a broker to file an information return in
accordance with such regulations as the
Secretary may prescribe. Section 6045(a)
further provides that such information
return must show the name and address of
each customer, and details regarding gross
proceeds and such other information as
the Secretary may by forms or regulations
require with respect to such business. The
Secretary is further authorized under sec-
tion 401 of the Job Creation and Worker
Assistance Act of 2002 (JCWAA), Pub-
lic Law 107-147, 116 Stat. 21 (March 9,
2002) to provide the manner of consent
for a recipient to receive electronic payee
statements.
1
These proposed regulations
are also issued under the express delega-
tion of authority under section 7805 of the
Code, which directs the Secretary to pre-
scribe all needful rules and regulations for
the enforcement of the Code.
Background
Under section 6045 and the regula-
tions thereunder, brokers are required to
make a return of information regarding
certain digital asset sale transactions to
the IRS and furnish payee statements to
the person whose identifying number
is (or is required to be) shown on Form
1099-DA, Digital Asset Proceeds From
Broker Transactions.
2
The existing rules
generally applicable to brokers furnishing
payee statements require brokers to obtain
consent from their customers before the
brokers can satisfy their furnishing obli-
gation with an electronically furnished
payee statement. The existing rules also
require brokers to furnish payee state-
ments on paper to any customer that does
not consent to receiving electronically fur-
nished statements or that withdraws a pre-
viously provided consent. These proposed
regulations would provide brokers with an
alternative process for obtaining consent
from their customers to receive 1099-DA
statements in an electronic format. Unlike
the existing rules, these proposed regula-
tions would generally not require brokers
to furnish the 1099-DA statements on
paper to any customer that does not con-
sent to receiving these statements elec-
tronically but, instead, would specifically
permit brokers to terminate their business
relationship with these customers. Addi-
tionally, these proposed regulations would
not require brokers to give their customers
the ability to withdraw a previously pro-
vided consent.
1
General references in these proposed regulations to payee statements refer to written statements required to be furnished under any information reporting provision under subpart B of part
III of subchapter A of chapter 61 of the Code. A person required to furnish such a payee statement generally is referred to as a furnisher. A person required to be furnished the payee statement
generally is referred to as a recipient.
2
A payee statement reflecting information required by section 6045 and the regulations thereunder to be reported on Form 1099-DA is referred to in this preamble as a 1099-DA statement. A
payee statement reflecting information required by section 6045 and the regulations thereunder to be reported on Form 1099-B, Gross Proceeds From Broker Transactions, is referred to in
this preamble as a 1099-B statement. A person required to furnish a 1099-B statement or a 1099-DA statement is referred to as a broker. A person required to be furnished a 1099-B statement
or a 1099-DA statement is referred to herein as a customer.

March 23, 2026 736 Bulletin No. 2026–13
I. Information Reporting by Brokers
Under Section 6045
Section 6045 and the regulations there-
under generally require brokers to file
information returns with the IRS with
respect to certain transactions, includ-
ing sales of digital assets, effected by the
broker on behalf of each customer. Bro-
kers required to make these returns must
include identifying information of the cus-
tomer, such as the customer’s name and
tax identification number (TIN), and such
other relevant information, including the
gross proceeds from the transaction, as the
Secretary may require by forms or regula-
tions. In certain circumstances, the returns
must also include the customer’s adjusted
basis in the assets sold. Brokers must use
either Form 1099-B or Form 1099-DA as
appropriate to provide this information to
the IRS.
Under section 6045(b) and §1.6045-
1(k)(1), a broker (which, where applica-
ble includes a barter exchange) making a
return of information under section 6045
must furnish either a 1099-B statement or
a 1099-DA statement to the broker’s cus-
tomer showing the information required to
be reported to the IRS as well as a leg-
end stating that the information is being
reported to the IRS. Under §1.6045-1(k)
(1), a payee statement is considered to be
furnished to the broker’s customer if it is
mailed to the customer at the last address
of the customer known to the broker. A
separate 1099-B statement or 1099-DA
statement must be furnished to the cus-
tomer for each sale transaction effected
for that customer during the calendar year.
Brokers may furnish these payee state-
ments to customers using Copy B of the
official Form 1099 or an acceptable sub-
stitute statement if it contains the same
information as the official IRS form. See
section 4.1.2 of Rev. Proc. 2025-22, 2025-
30 I.R.B. 200 (July 21, 2025), which is
published as IRS Publication 1179, Gen-
eral Rules and Specifications for Substi-
tute Forms 1096, 1098, 1099, 5498, and
Certain Other Information Returns (Pub-
lication 1179).
Section 6045(b) requires brokers to
furnish payee statements to their custom-
ers on or before February 15 of the year
following the calendar year for which
the return was required to be made. In
certain circumstances, filers reporting
more than one type of payment during
a calendar year with respect to the same
customer may furnish a combined payee
statement (called a consolidated reporting
statement) to that customer that combines
different types of payments on the same
statement. Section 6045(b) and §1.6045-
1(k)(3)(ii) extend the due date for furnish-
ing statements that are furnished with the
consolidated reporting statement from the
due date set forth in the Code for such
other payee statements (generally on or
before January 31 of a calendar year) to
February 15 of that year. The regulations
permit this combination of statements
on a consolidated reporting statement
only if the statements are based on the
same relationship of broker to customer
as the statement required to be furnished
under section 6045. See §1.6045-1(k)
(3)(i). Section 4.2.1 of Publication 1179
provides that 1099-DA statements may
be combined (in a consolidated state-
ment that Publication 1179 refers to as
a composite recipient statement) only
with income reported on the following
forms: Form 1099-B, Form 1099-DIV,
Dividends and Distributions (except for
section 404(k) dividends), Form 1099-
INT, Interest Income (except for interest
reportable under section 6041), Form
1099-MISC, Miscellaneous Information
(only for royalties or substitute payments
in lieu of dividends and interest), Form
1099-OID, Original Issue Discount,
Form 1099-PATR, Taxable Distributions
Received From Cooperatives, and Form
1099-S, Proceeds From Real Estate
Transactions (only for royalties). Section
4.2.1 of Publication 1179 does not permit
brokers to include any other payee state-
ment on a composite recipient statement
with a 1099-DV statement.
Section 6722 of the Code imposes a
penalty for any failure to furnish a payee
statement, including a payee statement
required by section 6045, on or before the
required furnishing date to the person to
whom such statement is required to be fur-
nished, and for any failure to include all
the information required to be shown on
the payee statement or for the inclusion of
incorrect information on that payee state-
ment.
Section 6724 provides that no penalty
shall be imposed under section 6722 if
the filer (payor) shows that the failure was
due to reasonable cause and was not due
to willful neglect.
II. Current Rules Permitting Electronic
Furnishing of Payee Statements
Section 401 of the JCWAA provides
that any person required to furnish a
payee statement under certain information
reporting provisions (including section
6045) of the Code “may electronically
furnish such statement . . . to any recip-
ient who has consented to the electronic
provision of the statement in a manner
similar to the one permitted under regu-
lations issued under section 6051 of such
Code or in such other manner as provided
by the Secretary.” The legislative history
to section 401 of the JCWAA also makes
clear that obtaining consent to the elec-
tronic furnishing of payee statements by
the recipient is mandatory. The Techni-
cal Explanation of the JCWAA provides
that the provision “removes the statutory
impediment” to electronically furnishing
payee statements and that “these copies
may be furnished electronically to a recip-
ient who has consented to this.” See Tech-
nical Explanation of the “Job Creation and
Worker Assistance Act of 2002,” JCX-
12-02 at 27 (March 6, 2002). See also
Description of Chairman’s Modification
to the “Economic Recovery and Assis-
tance for American Workers Act of 2001,
JCX-78-01 at 12 (November 8, 2001).
Accordingly, payee statements within the
scope of section 401 of JCWAA may be
furnished electronically only with the con-
sent of the recipient.
When JCWAA was enacted, tempo-
rary regulations, 66 FR 10191 (February
14, 2001) (Temporary Regulations), were
in effect under section 6051 that gener-
ally required furnishers to comply with
specific notice and consent requirements
before they could electronically furnish
payee statements to employee-recipients
on Forms W-2, Wage and Tax Statement,
(W-2 payee statements). A Notice of Pro-
posed Rulemaking, 66 FR 10247 (Feb-
ruary 14, 2001) (2001 Proposed Regu-
lations), cross-referenced the text of the
Temporary Regulations as the text of the
2001 Proposed Regulations. Following
the publication of the 2001 Proposed Reg-
ulations, the Treasury Department and the

Bulletin No. 2026–13 737 March 23, 2026
IRS received several comments seeking
the removal of the notice and consent
requirements. The Treasury Department
and the IRS retained the notice and consent
requirements in the final regulations. See
TD 9114, 69 FR 7567 (February 18, 2004)
(2004 Final Regulations). The Explanation
of Revisions and Summary of Comments
to the 2004 Final Regulations explained
that the notice and consent requirements
were retained for tax administration rea-
sons because “it is important that taxpay-
ers be able to demonstrate the ability to
receive the tax statements electronically
and then actually receive them.” Id. 69
FR at 7568. Additionally, the Explanation
of Revisions and Summary of Comments
to the 2004 Final Regulations explained
that the notice and consent requirements
were determined to be important to ensur-
ing that electronic furnishing remained
voluntary for both furnishers and recipi-
ents of payee statements to accommodate
recipients who perceive traditional paper
delivery of statements to be more secure
and private. Id. Finally, the Explanation
of Revisions and Summary of Comments
to the 2004 Final Regulations explained
that keeping the consent requirement vol-
untary was consistent with section 401 of
the JCWAA, which adopted the notice and
consent requirements by cross referencing
the Temporary Regulations. Id.
The section 6051 regulations refer-
enced by the JCWAA generally permit fur-
nishers that pay remuneration for services
to recipients to furnish payee statements
to the recipients in an electronic format in
lieu of paper if the furnisher obtains the
recipient’s consent and meets certain other
requirements. See §31.6051-1(j)(1). These
other requirements generally require that
the furnisher furnish the payee statement
on paper if the recipient does not consent
(or withdraws a previously provided con-
sent) to receiving the statement electron-
ically. See for example, §31.6051-1(j)(2)
(ii) and (j)(3)(ii). Additionally, because
recipients might not be aware that their
payee statements have been posted to the
furnisher’s website, the regulations require
the furnisher to provide the recipient with
clear notice that this important tax return
document is available and to provide
the recipient with instructions on how to
access it. See §31.6051-1(j)(5). Finally,
the regulations contain rules to ensure that
recipients have access during the tax filing
season to the payee statements reflecting
all the information reported to the IRS.
See §31.6051-1(j)(4) (format of substitute
statements) and (j)(6) (access period).
Section 4.6 of Publication 1179 applies
the rules set forth in §31.6051-1(j) regard-
ing the electronic furnishing of payee
statements to several different payee state-
ments required to be furnished, including
1099-DA statements required by section
6045(b) and §1.6045-1(k). Publication
1179 is generally updated annually.
III. Reasons for New Consent Procedures
for 1099-DA Statements Reflecting
Digital Asset Sales
Stakeholders have provided comments
indicating that transactions involving dig-
ital assets, including the purchase, sale, or
disposition thereof, are almost exclusively
conducted electronically. Customers who
buy and sell digital assets using the cus-
todial wallet services and exchange plat-
form services of digital asset brokers must
use computers or mobile devices to access
their brokers’ websites or mobile device
applications. Given that customers have
this technological capability, the Treasury
Department and the IRS are of the view,
consistent with that of stakeholder sugges-
tions discussed later in this Part III. of the
Background, that the furnishing of payee
statements related to digital asset trans-
actions to these customers is better con-
ducted electronically to relieve potential
compliance burdens on brokers.
Congress enacted third party informa-
tion reporting provisions to increase the
IRS’s ability to administer and enforce the
tax laws and to improve taxpayer compli-
ance with these laws. See e.g., Sen. Rep.
No 97-494, 239 (interest), 247 (fixed and
determinable or determinable income),
and 245 (capital gains) (July 12, 1982).
Third party information reporting gener-
ally contributes to lowering the income
tax gap, which is the difference between
taxes legally owed and taxes actually paid.
See U.S. Government Accountability
Office (GAO), Tax Gap: Multiple Strat-
egies Are Needed to Reduce Noncompli-
ance, GAO-19-558T at 6 (May 9, 2019).
Information reporting by brokers on their
customers’ digital asset transactions bene-
fits tax compliance by helping to close the
information gap. See Treasury Inspector
General for Tax Administration (TIGTA),
The Internal Revenue Service Can
Improve Taxpayer Compliance for Virtual
Currency Transactions Ref. No. 2020-
30-066 at 10 (September 2020); GAO,
Virtual Currencies: Additional Informa-
tion Reporting and Clarified Guidance
Could Improve Tax Compliance, GAO-
20-188 at 28 (Washington, D.C.: Febru-
ary 2020). First, because brokers are also
required to furnish 1099-DA statements to
their customers showing the information
reported to the IRS, customers receiv-
ing these 1099-DA statements are made
aware that their digital asset transactions
may be taxable transactions and can use
these statements as a record to assist with
reporting gross proceeds (and, when basis
is reported, calculating taxable gains and
losses) from the reported transactions.
Second, information returns allow the IRS
to match the information reported to the
IRS with tax returns filed by these custom-
ers whose identifying number is shown on
the information returns to verify that these
customers have properly reported income
(or loss) from the reported transactions.
Thus, furnishing of 1099-DA statements
to customers is essential not only to cus-
tomers who use the furnished information
to accurately file their tax returns but also
to reducing the overall tax gap attributable
to digital asset sale transactions.
The Internal Revenue Service Advi-
sory Committee (IRSAC) in its public
report for 2024 (IRSAC Report)
3
stated
that the current rules requiring that payee
statements be furnished on paper if the
statement recipient does not affirmatively
consent (or withdraws a previously pro-
vided consent) to receiving the statement
electronically would be impractical if
applied to digital asset brokers required to
furnish 1099-DA statements to their cus-
tomers reflecting the information reported
to the IRS with respect to each digital asset
transaction effected during the calendar
3
Public Report, Internal Revenue Service Advisory Council, Publication 5316 (Rev. 11-2024) available at https://www.irs.gov/pub/irs-pdf/p5316.pdf (IRSAC Report).

March 23, 2026 738 Bulletin No. 2026–13
year. See IRSAC Report at 130. Accord-
ing to the IRSAC Report, many customers
engage in a significant number of digital
asset transactions each year. Furnishing
separate 1099-DA statements for each
digital asset transaction (or even a single
substitute statement that includes infor-
mation about each transaction) by mail
would impose avoidable compliance bur-
dens on digital asset brokers that would be
forced to furnish to many customers hun-
dreds or even thousands of pages of paper
statements annually. Id.
The current regulations in §1.6045-
1(k) and the guidance in Publication 1179,
which apply to brokers effecting sales of
digital assets pursuant to the 2024 final
regulations (TD 10000, 89 FR 56480 (July
9, 2024)), require these brokers to furnish
1099-DA statements on paper for any cus-
tomer that does not affirmatively consent
(or withdraws a previously provided con-
sent) to receiving the 1099-DA statements
in an electronic format. The Treasury
Department and the IRS acknowledge that
the cost of furnishing 1099-DA statements
on paper for customers that do not provide
their consent under the existing rules may
be unnecessarily burdensome for brokers
that effect sales of digital assets because of
the large number of digital asset transac-
tions that some customers engage in each
year and because digital asset customers
almost exclusively conduct transactions
electronically. Consequently, these pro-
posed regulations propose alternative rules
that would allow digital asset brokers to
obtain customer consent to the electronic
furnishing of 1099-DA statements with-
out having to offer customers the choice
of receiving the 1099-DA statements on
paper. To ensure that customers are made
aware that an important tax return docu-
ment has been furnished in an electronic
format and have continuing access to
their 1099-DA statement, these proposed
alternative rules would, however, require
these brokers to meet certain enhanced
electronic notice and delivery require-
ments and to provide customer access to
the statements for a longer period of time.
Explanation of Provisions
These proposed regulations would pro-
vide guidance under proposed §1.6045-
1(k)(5) regarding the ability of brokers
to obtain consent from their customers to
furnish 1099-DA statements in an elec-
tronic format without offering a paper
delivery alternative. For the reasons dis-
cussed in Part III. of this Explanation of
Provisions, these proposed regulations
are limited to consent procedures only for
1099-DA statements and accordingly do
not extend to any other payee statements,
such as 1099-B statements.
I. Electronic Furnishing of 1099-DA
Statements
Proposed §1.6045-1(k)(5)(i) would
permit brokers required to furnish 1099-
DA statements to obtain consent to fur-
nish those statements in an electronic
format in lieu of paper either (1) pursu-
ant to guidance provided by the IRS in
the Internal Revenue Bulletin or other
publications (such as under section 4.6.2
of Publication 1179) applicable to other
information return filers or (2) under the
rules proposed in these proposed reg-
ulations. The rules proposed in these
proposed regulations would not require
the broker to furnish paper payee state-
ments if the customer does not consent
but, instead, would specifically permit
brokers to terminate their business rela-
tionship with these customers. Addition-
ally, unlike the existing rules, the rules
proposed in these proposed regulations
would not require brokers to permit cus-
tomers to withdraw a previously pro-
vided consent. Customers not permitted
to withdraw previously provided con-
sents would need to move their digital
asset investments to other brokers will-
ing to furnish 1099-DA statements on
paper in order to receive their 1099-DA
statements on paper. Because customers
would not have the right to have their
1099-DA statements furnished on paper,
these proposed regulations would impose
enhanced notification requirements on
brokers to increase the likelihood that
customers receive the communication
that their 1099-DA statements have been
transmitted or otherwise made available.
A. In general
Proposed §1.6045-1(k)(5)(i) would
permit brokers to furnish 1099-DA state-
ments to customers in an electronic format
in lieu of a paper format (and without the
requirement to offer the paper format) if
the broker obtains consent from the cus-
tomer, uses one of two qualified electronic
delivery methods, and meets certain other
requirements relating to continuing dis-
closure, format, notice, and access period.
The proposed consent requirements
are generally modeled after the consent
requirements under §31.6051-1(j) for W-2
payee statements but modify those rules
where appropriate to reflect the technolog-
ical knowledge of digital asset investors
and traders and the significantly greater
number of 1099-DA statements that must
be furnished to each customer. Under the
proposed regulations, brokers would be
required to obtain the customer’s posi-
tive consent to receiving the 1099-DA
statement in an electronic format after
receiving certain information from the
broker regarding the scope of consent, the
methods (including hardware and soft-
ware requirements) necessary to access
the electronically provided 1099-DA
statements, the qualified electronic deliv-
ery method that will be used to furnish the
1099-DA statements, and other important
information necessary for the customer
to make an informed consent. Unlike the
consent requirements under §31.6051-1(j)
for W-2 payee statements, these proposed
regulations would not require brokers to
give customers the option to receive their
1099-DA statements on paper nor would
they require brokers to give customers
the ability to withdraw a previously pro-
vided consent while remaining customers.
Nevertheless, as further described in Part
I.C.3.b. of this Explanation of Provisions,
if a broker’s email of an original 1099-DA
statement is returned as undeliverable, the
broker may be required to send the orig-
inal 1099-DA statement to the customer
by mail within 30 days of receiving that
undeliverable response.
Brokers that obtain the customer’s
positive consent would be required to
furnish 1099-DA statements either by
posting them to a specified location that
is electronically accessible, such as the
broker’s website, mobile device appli-
cation, or other online platform, or by
attaching them to an email. Brokers that
furnish 1099-DA statements by post-
ing them to an electronically accessible
specified location would be required to

Bulletin No. 2026–13 739 March 23, 2026
send customers a notice by email that the
statements are available and, if requested
by the customer, another notice using a
communication method other than email.
Brokers that furnish 1099-DA statements
by attaching them to emails would not
be required to send the customer a notice
unless the customer requests a notice of
that transmittal using a communication
method other than email. Because brokers
may not know if their customers, in fact,
accessed their electronically furnished
1099-DA statements, proposed §1.6045-
1(k)(5)(i) would treat a broker that posts
the 1099-DA statement to a specified
location that is electronically accessi-
ble and that meets the consent, delivery,
and other requirements in the proposed
regulations as furnishing the 1099-DA
statement as of the last of the following
dates: (1) the date that the broker posts the
1099-DA statement to the specified loca-
tion; (2) the date that the broker sends the
customer a notice by email that the 1099-
DA statement has been made available;
and (3) the date that the broker sends the
requested notice using a communication
method other than email, if requested by
the customer. For a broker that sends the
customer an email with a 1099-DA state-
ment attached and that meets the consent,
delivery, and other requirements in the
proposed regulations, proposed §1.6045-
1(k)(5)(i) would generally treat the broker
as furnishing the 1099-DA statement as of
the later of the date that the broker sends
to the customer an email with a 1099-DA
statement attached or the date that the bro-
ker sends the requested notice informing
the customer that the customer’s 1099-DA
statement has been transmitted using a
communication method other than email.
See Part I.C. of this Explanation of Provi-
sions for a discussion of the proposed rule
that would require brokers to provide cus-
tomers with additional methods to receive
requested notices regarding their 1099-
DA statements and the rationale behind
this proposed rule.
B. Consent
The proposed consent requirements
are generally modeled after the consent
requirements under §31.6051-1(j) for W-2
payee statements. For example, like the
consent requirements under §31.6051-
1(j), the proposed consent requirements
in these proposed regulations are designed
to ensure that the customer is made aware
that the customer is providing this specific
consent to receive the 1099-DA statement
in an electronic format. Additionally, like
the consent requirements under §31.6051-
1(j), the proposed rules would require that
customers be provided with a disclosure
statement, prior to or at the time of this
consent, setting forth important informa-
tion regarding the consequences of con-
sent and non-consent.
4

The proposed regulations would differ
from the rules under §31.6051-1(j), how-
ever, where appropriate to reflect the tech-
nological knowledge of digital asset trad-
ers and the significantly higher number
of 1099-DA statements that might be fur-
nished to each customer in comparison to
the single-page W-2 payee statements that
are required to be furnished to employees
under §31.6051-1(j). For example, the pro-
posed regulations would not include the
requirement in §31.6051-1(j)(2)(i) that the
recipient’s consent be provided in a way
that reasonably demonstrates the recipi-
ent’s ability to access the statement in the
electronic format. In addition, the pro-
posed regulations would not include the
requirements in §31.6051-1(j)(3)(ii) and
(v) that furnishers inform recipients that
recipients will receive paper statements if
they do not provide their consent or that
recipients may withdraw a previously pro-
vided consent under specified procedures.
See Parts I.B.1. through 5. of this Expla-
nation of Provisions for a more detailed
explanation of the consent requirements
included in proposed §1.6045-1(k)(5)
(iii) and how they compare to the consent
requirements in §31.6051-1(j).
1. Positive Consent
To achieve the objective that customers
be made aware of what they are consent-
ing to, proposed §1.6045-1(k)(5)(iii)(A)
would require that the customer provide
positive consent to receive the 1099-DA
statement in an electronic format. Positive
consent would be treated as obtained, for
this purpose, if the customer performs an
explicit action to provide consent, such as
by checking a box, clicking a button, or
completing a fill-in screen. See proposed
§1.6045-1(k)(5)(iii)(A). This proposed
requirement to take an explicit action to
provide positive consent is included to
ensure that customers are made aware
that they will receive their 1099-DA
statements in an electronic format. This
requirement that the customer perform an
explicit action is similar to the affirmative
consent requirement in the current regu-
lations in §1.6045-1(k) and the guidance
in Publication 1179. Use of the adjective
“positive” in the proposed regulations
instead of “affirmative” is meant to distin-
guish the overall consent rules in the pro-
posed regulations from the overall consent
rules under §31.6051-1(j) and as provided
in section 4.6.2 of Publication 1179,
which, unlike the proposed regulations,
require the customer to demonstrate that
the customer can access the electronically
provided statement. See Part I.B.2. of this
Explanation of Provisions for a discus-
sion of the demonstration requirement of
§31.6051-1(j) and why it is not included
in these proposed regulations.
Proposed §1.6045-1(k)(5)(iii)(A)
would also require that the broker’s solic-
itation of the customer’s consent meet
specific requirements designed to ensure
that customers are aware of what they
are agreeing to when they provide their
consent. As discussed in Part III. of the
Background, the furnishing of 1099-DA
statements to customers provides these
customers with a record that they can use
to assist with reporting gross proceeds
(and when basis is reported calculating
and reporting taxable gains and losses)
from the reported sales. If these custom-
ers are not made aware that their 1099-DA
statements will be furnished electroni-
cally, they might fail to access those state-
ments and report their taxable gains (and
losses) from the reported sales correctly,
thus thwarting the benefits of third-party
information reporting. Accordingly, to
address the importance of making custom-
ers aware that their 1099-DA statements
will be electronically furnished, proposed
4
The Electronic Signatures in Global and National Commerce Act (E-SIGN Act) Public Law No. 106-229, 114 Stat. 464 (2000), 15 U.S.C. sections 7001 through 7006 (2000), provides rules
permitting businesses to furnish to consumers legally required records in an electronic format with the consent of the consumer. The consent rules in these proposed regulations are largely
consistent with the consent rules in the E-SIGN Act.

March 23, 2026 740 Bulletin No. 2026–13
§1.6045-1(k)(5)(iii)(A) would require
that the customer’s consent to receiving
the 1099-DA statements in an electronic
format be separate from any other consent
provided by the customer. The solicita-
tion of the customer’s consent to receive
1099-DA statements electronically may
be included in another communication,
including a communication that solicits
consent on other issues, for example a
broker’s terms and conditions, but the cus-
tomer’s response to the 1099-DA consent
solicitation may relate only to consent to
receiving the 1099-DA statement elec-
tronically.
Additionally, to ensure that the cus-
tomer’s consent is an informed consent,
proposed §1.6045-1(k)(5)(iii)(A) would
require that a clear and conspicuous dis-
closure statement be provided to the cus-
tomer prior to or at the time of consent.
See Part I.B.3. of this Explanation of Pro-
visions, for a discussion of the information
that must be disclosed to the customer
prior to or at the time of consent and for
the rules detailing how this information
must be provided to the customer.
2. Demonstration of Ability to Access the
1099-DA Statement
The rules under §31.6051-1(j) and
the guidance under section 4.6 of Publi-
cation 1179 require furnishers of payee
statements to obtain the consent of each
recipient to receiving the payee statement
electronically before the statement can be
furnished electronically to that recipient.
Consent, for this purpose, requires that
the recipient reasonably demonstrate the
recipient’s ability to access the payee state-
ment in the electronic format.
5
Examples 1
and 2 under §31.6051-1(j)(2)(iv) demon-
strate the application of this rule with
facts showing recipients who are directed
to give their consent on documents that
are provided in the same electronic for-
mat as that in which the payee statements
will be furnished. Because the recipients
give their consent using the same elec-
tronic format as that in which the payee
statements will be furnished, Examples 1
and 2 conclude that the recipients’ consent
demonstrates that the recipients are able
to access the electronic format in which
the payee statements will be furnished.
Id. Example 3 under §31.6051-1(j)(2)(iv)
shows facts under which a recipient must
give consent on the same website that the
recipient’s electronically furnished payee
statement will be posted. Example 3 con-
cludes that because the recipient demon-
strated the ability to access the website on
which the payee statement will be posted,
the recipient’s consent demonstrated the
recipient’s ability to access the payee
statement in the electronic format. Id.
Taxpayers who buy and sell digital
assets using the custodial wallet services
and exchange platform services of dig-
ital asset brokers must use computers
or mobile devices to access their bro-
kers’ websites or mobile device appli-
cations. Consequently, these taxpayers
have already demonstrated that they can
access their brokers’ websites or mobile
device applications to retrieve information
posted to these locations, such as a 1099-
DA statement. Therefore, it is not neces-
sary for customers to demonstrate their
ability to access their brokers’ websites
or mobile device applications. Similarly,
by definition, if a taxpayer provides the
broker with the taxpayer’s email address,
the taxpayer has confirmed that the tax-
payer can access communications sent to
this address. Therefore, it is not necessary
for customers to demonstrate their techni-
cal ability to access their email accounts.
By not adopting these requirements from
§31.6051-1(j), the Treasury Department
and the IRS anticipate that these proposed
regulations will be less burdensome on
electronic commerce without materially
increasing the risk of harm to consum-
ers. Accordingly, these proposed regula-
tions do not require the method by which
a customer provides consent to include a
demonstration that the customer has the
technical ability to access electronically
furnished 1099-DA statements in the for-
mat in which it will be furnished.
3. Pre-Consent Disclosure Statement
a. Information included in the pre-consent
disclosure statement
As noted in Part I.B.1. of this Expla-
nation of Provisions, proposed §1.6045-
1(k)(5)(iii)(A) would require brokers to
provide customers with a clear and con-
cise disclosure statement prior to or at the
time of consent (pre-consent disclosure
statement). Proposed §1.6045-1(k)(5)
(iii)(C) would require that this disclosure
statement contain seven information items
described in proposed §1.6045-1(k)(5)(iii)
(C)(1) through (7). Two of these proposed
disclosure requirements are the same as
the disclosure requirements set forth in
§31.6051-1(j)(3)(iii) (scope and duration
of consent) and (viii) (hardware and soft-
ware requirements) and described in sec-
tion 2.6.2 of Publication 1179.
6
Specifi-
cally, proposed §1.6045-1(k)(5)(iii)(C)(1)
would require the pre-consent disclosure
statement to inform the customer that the
provided consent will apply to all 1099-
DA statements required to be furnished
by the broker. Additionally, proposed
§1.6045-1(k)(5)(iii)(C)(2) would require
the pre-consent disclosure statement to
describe the method by which the cus-
tomer will need to access, download, and
print the 1099-DA statement furnished in
the electronic format, including the hard-
ware or software the customer will need to
conduct these functions.
Proposed §1.6045-1(k)(5)(iii)(C)
also includes five pre-consent disclosure
requirements that are not included in (or
are different from) the pre-consent dis-
closures required by §31.6051-1(j)(3)
and described in section 2.6.2 of Pub-
lication 1179. For example, proposed
§1.6045-1(k)(5)(iii)(C)(3) would require
the pre-consent disclosure statement to
describe the specific qualified electronic
delivery method that the broker will use
to furnish the 1099-DA statement to the
customer. The purpose of this disclosure is
to ensure that customers will know which
method brokers will use to deliver their
5
See §31.6051-1(j)(2)(i); see also 15 U.S.C. 7001(c)(1)(C)(ii).
6
See also 15 U.S.C. 7001(c)(1)(B)(ii) and (c)(1)(C)(i). Many of the pre-consent disclosure requirements in §31.6051-1(j)(3) are not included in the proposed regulations because they are
not applicable. For example, §31.6051-1(j)(3)(ii), (iv), and (v) require disclosures associated with the paper statement option that furnishers are required to provide under §31.6051-1(j).
Similarly, §31.6051-1(j)(3)(vi) is not applicable to these proposed regulations because it requires furnishers to inform recipients of the conditions under which payee statements will no longer
be electronically furnished.

Bulletin No. 2026–13 741 March 23, 2026
1099-DA statements. Customers can use
this information to evaluate whether, in
their view, the delivery method chosen by
the broker is a secure or otherwise conve-
nient method of delivery. See Part I.C. of
this Explanation of Provisions for a dis-
cussion of the qualified electronic delivery
methods.
If the broker chooses the qualified
electronic delivery method that would
require the broker to send a notice to the
customer that the 1099-DA statement has
been posted to a specified location that
is electronically accessible, proposed
§1.6045-1(k)(5)(iii)(C)(4) would require
the disclosure statement to state that the
notice will be sent to the customer by
email and that the customer may ask
for another notice using an additional
communication method (referred to as
requested notice). Alternatively, if the
broker chooses the qualified electronic
delivery method that would require the
broker to transmit the customer’s 1099-
DA statement by way of attachment
to an email, proposed §1.6045-1(k)(5)
(iii)(C)(4) would require the disclosure
statement to inform the customer that
the customer may ask for a notice using
an additional communication method
when the customer’s 1099-DA statement
has been transmitted (also referred to as
requested notice). Additionally, regard-
less of which qualified electronic deliv-
ery method the broker chooses, proposed
§1.6045-1(k)(5)(iii)(C)(4) would require
the disclosure statement to inform the
customer that the customer may ask the
broker to change the additional com-
munication method used by the broker
to send the requested notices. See Part
I.C. of this Explanation of Provisions
for a discussion of the proposed rule that
would require brokers to provide custom-
ers with additional methods to receive
requested notices regarding their 1099-
DA statements and the rationale behind
this proposed rule. The purpose of this
disclosure requirement is to inform cus-
tomers that they may request a communi-
cation method other than email by which
they will receive notices regarding their
1099-DA statements.
Additionally, if the broker intends to
limit the services available to customers
that do not provide their consent, such as
not effecting future sales for such custom-
ers, proposed §1.6045-1(k)(5)(iii)(C)(5)
would require that the disclosure statement
inform the customer of this intention. The
purpose of this disclosure requirement is
to ensure that customers are made aware
of the consequences of their decision, not
to limit the decisions brokers can make
regarding these consequences. For exam-
ple, under the proposed regulations, a bro-
ker may decide to not effect sales for cus-
tomers that do not provide their consent or
could alternatively decide to continue to
effect sales for customers up to a certain
limit to ensure that any paper 1099-DA
statements sent to non-consenting custom-
ers would be short. See Part I.B.5.b. of this
Explanation of Provisions for a further
discussion of this requirement and why
the disclosure of this consequence would
not invalidate a consent.
Proposed §1.6045-1(k)(5)(iii)(C)(6)
would require that the disclosure state-
ment inform the customer of the broker’s
policy regarding the withdrawal of a
previously provided consent. If a broker
does not offer customers the opportunity
to withdraw a previously provided con-
sent, proposed §1.6045-1(k)(5)(iii)(C)(6)
would require that the disclosure state-
ment inform the customer of this policy.
Conversely, if the broker does choose to
offer customers the opportunity to with-
draw a previously provided consent, the
disclosure statement must inform the cus-
tomer of the procedures the customer must
follow to withdraw a previously provided
consent and when such withdrawal will be
effective. The purpose of this disclosure
requirement is to ensure that customers
are made aware of the consequences of
their decision, not to limit the decisions
brokers can make regarding consent with-
drawals.
Finally, proposed §1.6045-1(k)(5)(iii)
(C)(7) would require that the disclosure
statement provide a document or describe
a location, such as on the broker’s website,
mobile device application, or other online
platform, where the customer can find the
information included in the pre-disclo-
sure statement after providing consent.
The purpose of this proposed disclosure
requirement is to ensure that customers
will be able to obtain answers to their
questions about their 1099-DA statements
if they are unable to remember the infor-
mation provided at the time of consent.
Section 31.6051-1(j)(3)(ii) and (iv)
require the furnisher to inform the recip-
ient that a paper statement will be fur-
nished if the recipient does not consent
and the procedures the recipient must fol-
low to obtain a paper statement after giv-
ing consent. These disclosures have not
been added to the proposed regulations’
disclosure requirements because these
proposed rules do not require the broker
to offer the customer a paper 1099-DA
statement. Instead, as discussed earlier in
this Part I.B.3., under the proposed regu-
lations brokers may refuse to offer a paper
statement and may decline to continue
or begin their business relationship with
customers that do not provide their con-
sent. See Part I.B.5. of this Explanation of
Provisions for a further discussion of the
rationale behind not requiring brokers to
offer customers a paper option. For similar
reasons, the proposed regulations also do
not require brokers to disclose to custom-
ers the information included in §31.6051-
1(j)(3)(ii), which requires furnishers to
inform recipients that they have a right to
withdraw a previously provided consent,
the procedures the recipient must follow
to do so, and when a withdrawn consent
will be effective. Instead, as discussed ear-
lier in this Part I.B.3, the proposed regula-
tions would require the broker to inform
the customer of whether it will permit
customers to withdraw consent. Only if a
broker does permit customers to withdraw
consent would the broker need to inform
the customer of the procedures the cus-
tomer must follow to do so.
b. Method of providing the pre-consent
disclosure statement
Proposed §1.6045-1(k)(5)(iii)(C)
would provide that the pre-consent dis-
closure statement may be provided by the
broker in any manner that is part of the
consent solicitation. For example, the bro-
ker could include the information required
to be disclosed on a pop-up screen shown
to the customer as part of the request for
the customer’s consent or on another page
on the broker’s website, mobile device
application, or other online platform to
which the pop-up consent screen provides
a direct link.
The Treasury Department and the IRS
are concerned, however, that customers

March 23, 2026 742 Bulletin No. 2026–13
that transact with brokers exclusively
through one or more physical electronic
terminals or kiosks might not remember
the name or URL of the broker’s website,
mobile device application, or other online
platform if it was only accessed using the
broker’s kiosk. Similarly, customers that
transact with brokers that effect sales of
digital assets as a processor of digital asset
payments as defined in §1.6045-1(a)(22)
(PDAP broker), where the digital assets
that the customer uses for payment are held
in an account at a different custodial bro-
ker, might not be aware of the PDAP bro-
ker’s website, mobile device application,
or other online platform. Accordingly, to
ensure that customers using kiosks or
PDAP brokers to effect sales of their dig-
ital assets have continuing access to this
initial disclosure statement, proposed
§1.6045-1(k)(5)(iii)(C) would require that
PDAP brokers and brokers that transact
exclusively with customers through one
or more physical electronic terminals or
kiosks also provide the disclosure state-
ment to these customers by email or by
using any mail or private delivery service
within five business days of the customer’s
explicit action to provide positive consent.
This five business-day requirement would
ensure that the customer is familiar with
the context of the communication when
it is received. Additionally, proposed
§1.6045-1(k)(5)(iii)(C) would require that
these brokers also provide customers with
the opportunity to receive this disclosure
statement using an additional communica-
tion method described in Part I.C. of this
Explanation of Provisions if requested by
the customer at the time of consent. See
Part I.C. of this Explanation of Provi-
sions for a discussion of why the customer
should be given the opportunity to request
communications sent by email using an
additional communication method.
Comments are requested regarding
these additional rules requiring the provi-
sion of the disclosure statement in the case
of customers that transact with brokers
that operate physical terminals or kiosks.
For example, comments are requested
on whether these customers regularly
visit the broker’s website, mobile device
application, or other online platform
when they are not at the broker’s physi-
cal terminal or kiosk. Comments are also
requested regarding the need for this rule
in the case of customers that transact with
PDAP brokers. For example, comments
are requested on whether these custom-
ers regularly visit the broker’s website,
mobile device application, or other online
platform. Finally, comments are requested
regarding whether the requirement that
brokers send the disclosure statements to
the customer within five business days of
the customer’s explicit action to provide
consent provides brokers with sufficient
time to comply with this requirement.
4. Change in Hardware or Software
Requirements
Under §31.6051-1(j)(2)(iii) and the
guidance in section 4.6.2 of Publication
1179, if the furnisher changes the hard-
ware or software that the recipient will
need to access the payee statement and
that change creates a material risk that
the recipient will not be able to access
the payee statement, the furnisher must
obtain a new consent from the recipient
to receive the payee statement electron-
ically after notifying the recipient of the
new hardware or software requirements.
Because taxpayers who buy and sell dig-
ital assets are likely to have the techno-
logical wherewithal to access statements
provided using the qualified electronic
delivery methods described in proposed
§1.6045-1(k)(5)(ii) (posted to an elec-
tronically accessible specified location
or by direct transmittal), the condition
that recipients be notified if there is a
material risk that the recipient will not
be able to access the payee statement has
been revised. Specifically, if an intended
change in the method by which the cus-
tomer will need to access, download, and
print the 1099-DA statement furnished in
the electronic format, including a change
in the hardware or software required to
conduct these functions, would create a
material risk that the customer will need
to obtain new hardware or software to
access the 1099-DA statement, proposed
§1.6045-1(k)(5)(iii)(B) would require the
broker to obtain a new consent from the
customer to receive the 1099-DA state-
ment using the new hardware or software
before implementing the change. The
broker would be required to obtain this
new consent regardless of whether the
necessary new hardware to be obtained
or software required to be downloaded
are available at a price or are gener-
ally offered to consumers for free. This
requirement, however, is not intended
to apply to the simple case in which the
customer is provided minor upgrades in
existing software that do not impede the
customer’s ability to access the 1099-
DA statement. Comments are requested
regarding how this distinction can be
expressed in regulatory text. In addition,
the broker would be required to obtain
this consent in the same manner as that
described in proposed §1.6045-1(k)(5)
(iii)(A) and would be required to furnish
the customer with updated pre-consent
disclosures described in Part I.B.3. of
this Explanation of Provisions. Brokers
would be required to furnish 1099-DA
statements in the old hardware or soft-
ware format to customers that do not
provide their consent to receiving the
1099-DA statements in the new hardware
or software format until they receive that
consent.
5. Not Offering a Paper 1099-DA
Statement Alternative
a. In general
The rules under §31.6051-1(j)(3)(ii)
and (v) as applied by section 4.6.2 of Pub-
lication 1179 require furnishers to inform
recipients that payee statements will be
furnished on paper if the recipient does
not consent to receiving the payee state-
ment electronically and that the recipient
has the right to withdraw a previously pro-
vided consent. Additionally, §31.6051-1(j)
(2)(ii) as applied by section 4.6.2 of Pub-
lication 1179 provides that a previously
provided consent from a recipient is not
valid once a recipient’s withdrawal of that
consent takes effect. The Treasury Depart-
ment and the IRS explained in the Expla-
nation of Revisions and Summary of Com-
ments to the 2004 Final Regulations that it
was important that the electronic furnish-
ing of payee statements remain voluntary
(that is, that recipients be provided with a
paper option) to accommodate recipients
who perceive traditional paper delivery
of statements to be more secure and pri-
vate. See 2004 Final Regulations 69 FR at
7568. This accommodation, according to
this explanation, was consistent with Con-

Bulletin No. 2026–13 743 March 23, 2026
gressional intent as reflected by the refer-
ence in section 401 of the JCWAA to the
regulations under section 6051. Id.
In mandating that a paper deliv-
ery option be offered, the rules under
§31.6051-1(j) struck a balance between
the desire of furnishers to reduce costs by
furnishing W-2 payee statements electron-
ically and the tax administration concerns
associated with recipients being unable
to access electronically furnished W-2
payee statements for use in filing accu-
rate income tax returns. Unlike many of
the single-page payee statements sub-
ject to the rules under §31.6051-1(j) that
reflect an aggregation of all reportable
payments made within the calendar year,
the §1.6045-1 regulations require brokers
to furnish a separate 1099-DA statement
for each transaction (or a single substitute
statement that includes information about
each transaction) effected for customers
within a calendar year. Given the number
of digital asset transactions that may be
effectuated by a single customer in a given
year, even substitute 1099-DA statements
that reflect each of these transactions, if
printed, may be quite lengthy.
The Treasury Department and the
IRS are of the view that recipients have
become increasingly able to access elec-
tronically furnished payee statements
since the 2004 Final Regulations were
first published. Compared to the early
2000s, most U.S. adults today say they
use the internet (95%), have a smartphone
(90%), or subscribe to high-speed internet
at home (80%).
7
This is especially true
for digital asset investors and traders who
generally communicate with their digital
asset brokers solely through electronic
means. As such, the risk of harm to recipi-
ents who are asked to consent to receiving
payee statements in an electronic format
has materially diminished since those reg-
ulations were first published. Addition-
ally, the Treasury Department and the IRS
are sympathetic to the potentially substan-
tial compliance costs for digital asset bro-
kers, and the burden those costs place on
electronic commerce, that would result if
digital asset brokers were required to offer
customers paper 1099-DA statements.
According to the IRSAC Report, the print-
ing and mailing costs that physical deliv-
ery of 1099-DA statements would require
could create unmanageable burdens for
brokers because of the large quantity of
trades engaged in by some digital asset
investors. Moreover, customers that inad-
vertently fail to provide their consent to
receiving the statements electronically or
that do not appreciate the length of these
statements when they choose to receive
paper statements could potentially be sig-
nificantly inconvenienced by this choice
because they may need to scan potentially
lengthy paper statements to computer files
for transmission to tax return preparers
or for use by tax return preparation soft-
ware. The significant cost of printing and
mailing paper 1099-DA statements to cus-
tomers also imposes material burdens on
small business brokers, who may incur
substantial expenses to meet paper-fur-
nishing requirements. As such, the tax
administration benefits of not requiring
brokers to offer a paper delivery option
for 1099-DA statements outweigh the
costs to digital asset investors and traders
of not having that option because digital
asset investors and traders have the tech-
nological capability to receive electronic
communications and to visit their brokers’
websites or mobile device applications to
access their electronically furnished 1099-
DA statements.
8

b. Changes to the parties’ relationship if
the customer does not consent
There may be customers that refuse to
consent to receiving the 1099-DA state-
ment in an electronic format even though
the broker does not offer the customer an
option to receive the 1099-DA statement
on paper (or limits that option to customers
with transaction numbers below a certain
threshold). As discussed in Part II. of the
Background, section 401 of the JCWAA
mandates that the recipient consent to
receiving a payee statement electroni-
cally before the furnisher may electron-
ically furnish that statement. Therefore,
if a broker is unwilling to furnish paper
1099-DA statements to customers that do
not consent to electronic furnishing, the
broker would need to cease effecting sales
for these customers to avoid being penal-
ized for the failure to furnish 1099-DA
statements under section 6722. If a bro-
ker makes the business decision to limit
its services, for example by not effecting
any future sales for all such customers or
for those customers with transaction num-
bers above a certain threshold, proposed
§1.6045-1(k)(5)(iii)(C)(5) would require
that the broker disclose this business deci-
sion to customers prior to obtaining their
consent.
9
Disclosure of the consequences
to not providing consent when those con-
sequences are legally permitted does not
invalidate an otherwise valid consent.
See, e.g., Ballard v. Comm’r, T.C. Memo.
1987-471 (Commissioner’s statement that
IRS Appeals conference would not be
allowed if taxpayer failed to consent to
extending statute of limitations does not
invalidate signed consent because such
statements are nothing more than notice
that the Commissioner intends to use
lawful means at his disposal to assess the
tax); Hall v. Comm’r, T.C. Memo. 2013-
93 (signed consent valid where taxpayer
faced choice of whether to accept plea
agreement or go on trial and face signifi-
cantly worse consequences). Accordingly,
a broker may inform customers that the
broker has determined it will not effectu-
ate sales with, or will otherwise limit the
business relationship with, a customer that
does not consent to receiving electronic
1099-DA statements.
c. Withdrawal of consent
The rules under §31.6051-1(j) and
the guidance under section 4.6 of Publi-
cation 1179 require furnishers of payee
statements to inform recipients that they
7
See Pew Research Center, Americans’ Use of Mobile Technology and Home Broadband, https://www.pewresearch.org/internet/2024/01/31/americans-use-of-mobile-technolo-
gy-and-home-broadband/ (accessed March 4, 2026).
8
The E-SIGN Act permits a Federal agency to promulgate consent rules that deviate from the consent rules in the E-SIGN Act if it makes a determination that this deviation is necessary to
eliminate a substantial burden on electronic commerce and will not increase the material risk of harm to consumers. 15 U.S.C. 7004(d).
9
Informing customers of these consequences is consistent with the E-SIGN Act, which requires that furnishers inform consumers of any consequences (including termination of the parties’
relationship) if the consumer withdraws consent. See 15 U.S.C. 7001(c)(1)(B)(i)(II).

March 23, 2026 744 Bulletin No. 2026–13
have the right to withdraw consent. See
§31.6051-1(j)(3)(v). Additionally, once
a recipient withdraws consent and that
withdrawal is effective, the furnisher must
provide the payee statement on paper. See
§31.6051-1(j)(2)(ii) and (j)(7). For the
same reason that these proposed regula-
tions do not require a broker to provide a
paper delivery option at the time of con-
sent, these proposed regulations also do
not require brokers to offer customers
the opportunity to withdraw a previously
provided consent. See Part I.B.5.a. of this
Explanation of Provisions for a discussion
of the paper option. Despite this conclu-
sion, the proposed regulations would
require brokers to inform customers if
they will not be given the opportunity to
withdraw a consent once provided. See
Part I.B.3. of this Explanation of Provi-
sions for a general discussion of the infor-
mation that a broker must disclose to the
customer prior to or at the time of consent.
C. Qualified electronic delivery methods
The rules under §31.6051-1(j) when
originally proposed would have only per-
mitted furnishers to furnish payee state-
ments electronically by posting them to
a website accessible to the recipient. See
Temporary Regulations 69 FR at 1193
(proposed §31.6051-1(j)(5)). In response
to this proposed rule, two commenters
recommended that the regulations allow
furnishers to provide payee statements as
attachments to emails, and one commenter
stated that providing tax statements by
email raised security and privacy con-
cerns. See Explanation of Revisions and
Summary of Comments to the 2004 Final
Regulations 69 FR at 7568. In response
to these comments, the 2004 Final Reg-
ulations did not restrict furnishers solely
to the use of website technology, but the
Treasury Department and the IRS noted
that, although website technology pro-
vided the most secure method of furnish-
ing payee statements electronically, it was
not the Secretary’s intention to limit the
technology to be used in furnishing payee
statements electronically. Id.
The 2004 Final Regulations do not pro-
vide any rules for brokers that fulfill their
furnishing obligations by attaching payee
statements to emails. In contrast, these
proposed regulations include proposed
rules for brokers that furnish 1099-DA
statements by attaching them to emails
because these furnishing rules are nec-
essary to ensure customers receive their
1099-DA statements no matter how they
are furnished. Additionally, furnishing
rules for 1099-DA statements are nec-
essary for all delivery methods because
1099-DA statements will be new to digital
asset investors and traders who might not
otherwise seek to obtain their statements
if they do not receive an email regarding
these statements. Given these consider-
ations, it is important to provide brokers
with clear rules for whichever electronic
delivery method they use to furnish 1099-
DA statements. Accordingly, these pro-
posed regulations include rules for bro-
kers that furnish 1099-DA statements by
posting them to electronically accessible
specified locations as well as for bro-
kers that furnish 1099-DA statements by
attaching them to emails. These methods
are collectively referred to as qualified
electronic delivery methods.
As discussed in Part I.A. of this Expla-
nation of Provisions, proposed §1.6045-
1(k)(5)(i) would require brokers furnish-
ing 1099-DA statements in an electronic
format to use a qualified electronic deliv-
ery method to do so. Proposed §1.6045-
1(k)(5)(ii) would define a qualified elec-
tronic delivery method, for this purpose,
as falling within one of two broad types
of delivery methods. First, under proposed
§1.6045-1(k)(5)(ii)(A), the broker would
be permitted to post the 1099-DA state-
ment to a specified location that is elec-
tronically accessible, such as the furnish-
er’s website, mobile device application, or
other online platform. Brokers using this
qualified electronic delivery method would
also be required to notify the customer
by email that the 1099-DA statement has
been so posted. Alternatively, under pro-
posed §1.6045-1(k)(5)(ii)(B), the broker
would be permitted to transmit the 1099-
DA statement directly to the customer by
attaching it to (or otherwise including it
with) an email to the customer. Comments
are requested addressing whether there are
any other practical methods of electroni-
cally furnishing the 1099-DA statements
other than the two methods described in
proposed §1.6045-1(k)(5)(ii)(A) and (B)
that should be included in the definition
of a qualified electronic delivery method.
Regardless of which of these two pro-
posed qualified electronic delivery meth-
ods the broker chooses to furnish 1099-
DA statements electronically, the broker
would be required to send an email to the
customer either to provide notice that the
statement has been made available in an
electronically accessible specified loca-
tion or to transmit the 1099-DA statement
directly. The Treasury Department and the
IRS considered whether brokers should be
given the ability to choose a different com-
munication method for these notices and
transmittals but decided against providing
brokers with this choice for several rea-
sons. First, email is a ubiquitous method
of communication with which most peo-
ple are familiar. Because it is essential to
tax administration that customers actually
receive these important communications
and view and use their 1099-DA state-
ments, it is essential that the most broadly
used and well-known method of commu-
nication be required. Second, most email
providers have policies to prevent the
reuse of previously used addresses and
will return as undeliverable messages sent
by email to an address that is not assigned
to any user. In contrast, if a broker sent
a communication by way of text message
to a customer regarding the customer’s
1099-DA statement, the broker might
not be informed if the customer’s mobile
phone number was no longer in service or
was reassigned to another mobile phone
customer.
The Treasury Department and the IRS
considered whether a customer’s in-ac-
count messaging system with the broker
(also referred to in certain circumstances
as in-application messaging) should be
permitted as a default communication
method. This communication method
was not proposed as a default method,
however, because of the concern that this
method did not provide a sufficient level
of certainty that the communication will
be received by most customers because
it is unclear if all customers would even
be aware that communications have been
sent to their in-account messaging system.
The Treasury Department and the IRS
also considered whether communications
sent to a customer’s cellular device in a
manner that can be viewed even when the
account application with the broker is not
open (sometimes referred to as push noti-

Bulletin No. 2026–13 745 March 23, 2026
fications) should be permitted as a default
communication method for this purpose.
Because customers can turn off push
notifications on their device without the
broker’s knowledge, the Treasury Depart-
ment and the IRS also concluded that this
method does not provide a sufficient level
of certainty that the communication will
be received by most customers. See Parts
I.C.1. and 2. of this Explanation of Provi-
sions for a discussion of the requirement
that brokers provide customers with the
opportunity to request certain additional
communications regarding their 1099-DA
statements using other methods of com-
munication, including in-account messag-
ing and push notifications.
1. Posting a 1099-DA Statement to an
Electronically Accessible Specified
Location
The first type of qualified electronic
delivery method is described in proposed
§1.6045-1(k)(5)(ii)(A)(1). Under pro-
posed §1.6045-1(k)(5)(ii)(A)(1), a qual-
ified electronic delivery method would
require the broker to post the 1099-DA
statement to a specified location that is
electronically accessible, such as the bro-
ker’s website, mobile device application,
or other online platform. Once the 1099-
DA statement has been posted, proposed
§1.6045-1(k)(5)(ii)(A)(1) would also
require the broker to send the customer an
email notice, containing the information
described in proposed §1.6045-1(k)(5)
(ii)(A)(4), to inform the customer that the
1099-DA statement has been so posted.
Like the information required to be
included in notices sent to recipients under
§31.6051-1(j)(5) and the guidance in sec-
tion 4.6.2 of Publication 1179, proposed
§1.6045-1(k)(5)(ii)(A)(4) would require
the broker to include in the notice instruc-
tions on how the customer can access
and print the 1099-DA statement. The
notice would also be required to include
the following statement in capital letters,
“IMPORTANT TAX RETURN DOC-
UMENT AVAILABLE.” This statement
would also be required to be included on
the subject line of the email. These rules
are designed to make the customer aware
that the customer’s 1099-DA statements
are available and to provide information
on how to access those statements.
The Treasury Department and the IRS
are concerned that some customers may
not regularly check whether emails have
been sent to an address that the customer
provided to the broker or may not be
aware if the customer’s email provider fil-
ters out as unsolicited an important email
from the broker. For example, a customer
may regularly access a broker’s website to
carry out transactions but only occasion-
ally check whether emails have been sent
to an email address that the customer has
provided to the broker. Additionally, some
customers may not open emails from their
broker because they are concerned that the
emails may be compromised and could
give rise to a phishing attack. Finally,
some customers may find it useful to
receive notices regarding their 1099-DA
statements using a different communica-
tion method to remind them that they may
have taxable digital asset transactions that
need to be reported on their tax returns.
Accordingly, proposed §1.6045-1(k)(5)
(ii)(A)(1) would require the broker to
provide the customer with the opportu-
nity to receive another notice from the
broker using an additional communica-
tion method if the customer requests this
notice not later than the end of the calen-
dar year to which the 1099-DA statement
relates (requested notice). These requested
notices would also be required to include
the following statement in capital letters,
“IMPORTANT TAX RETURN DOC-
UMENT AVAILABLE.” This statement
must also be included prominently in the
message of the requested notice. See pro-
posed §1.6045-1(k)(5)(ii)(B)(4).
Requiring brokers to provide custom-
ers with a choice of additional communi-
cation methods regarding these import-
ant communications is important to tax
administration. First, providing custom-
ers that do not find email to be the best
communication method with the ability
to choose an additional communication
method that is better suited to their needs
will increase the likelihood that these cus-
tomers actually receive these important
communications and view and use their
1099-DA statements. Second, because
1099-DA statements will be new for dig-
ital asset investors and traders, it is more
likely that these customers will not be
experienced in knowing when they should
look for email communications about their
1099-DA statements. For these reasons,
the proposed regulations would require
brokers to provide customers with the
opportunity to receive a requested notice
from the broker regarding the posting of
their 1099-DA statements using an addi-
tional communication method. Because
brokers would only be required to send
requested notices to those customers that
take the initiative to ask for these notices,
the cost of this rule for the broker should
be limited to those customers that need to
receive the notice using another commu-
nication method.
If the customer asks for this requested
notice by the required deadline, proposed
§1.6045-1(k)(5)(ii)(A)(1) would require
that the broker provide the customer
with certain choices of communication
methods. Under proposed §1.6045-1(k)
(5)(ii)(C), the broker must always offer
the customer the choice of receiving the
requested notice on paper using the phys-
ical delivery method chosen by the broker
(that is by mail or any private delivery ser-
vice). The broker may, but is not required
to, offer customers additional choices of
electronic delivery using any electronic
delivery method described in proposed
§1.6045-1(k)(5)(ii)(C)(1) that the broker
chooses to offer. These electronic deliv-
ery methods include messages sent to the
customer’s cellular phone number (some-
times referred to as text messaging), to the
customer’s in-account messaging system
with the broker (sometimes also referred
to as in-application messaging), to the
customer’s cellular device in a manner
that can be viewed even when the account
application with the broker is not open
(sometimes referred to as push notifica-
tions), or to any other electronic messag-
ing address of the customer.
Although sending notices by mail
or private delivery service may be more
costly to brokers than sending them
electronically, the Treasury Department
and the IRS have proposed that bro-
kers always offer customers this option
because mail is likely the most common
communication method for important tax
documents other than email. Additionally,
because these requested notices should
be short communications, as opposed to
potentially lengthy 1099-DA statements,
the tax administration benefits for the
IRS and customers choosing to receive

March 23, 2026 746 Bulletin No. 2026–13
these notices by mail or private delivery
service should outweigh the higher costs
of mailing these notices. As noted, the
Treasury Department and the IRS intend
for this mailing requirement, as well as
the other mailing requirements through-
out the proposed regulations, to permit
the broker to choose the particular mail
or private delivery service that best meets
the broker’s business needs. Comments
are requested regarding whether there is
a more reasonable amount of time (other
than the proposed end of the calendar year
to which the 1099-DA statement relates)
for the customer to ask for a requested
notice using an additional communication
method. Comments are also requested
addressing whether there are any other
practical methods of delivering these
important notices.
2. Direct Transmittal of the 1099-DA
Statement
The second type of qualified electronic
delivery method is described in proposed
§1.6045-1(k)(5)(ii)(B)(1) as a direct trans-
mittal of the 1099-DA statement to the
customer. Under this method, the 1099-
DA statement would be attached to, or
otherwise included with, an email to the
customer. The rules under §31.6051-1(j)
(5) and the guidance in section 4.6.2 of
Publication 1179 do not include infor-
mation requirements for emails sent
directly to recipients to which payee state-
ments are attached. It is important that
customers that are sent emails to which
payee statements are attached be made
aware that important documents related
to their tax compliance obligations are
attached to an email. Accordingly, pro-
posed §1.6045-1(k)(5)(ii)(B)(4) would
require the broker’s email to which the
1099-DA statement has been attached to
include instructions on how the customer
can access, download, and print the 1099-
DA statement. Additionally, proposed
§1.6045-1(k)(5)(ii)(B)(4) would also
require that this electronic communication
include the following statement in capital
letters, “IMPORTANT TAX RETURN
DOCUMENT AVAILABLE” and that
this statement be on the subject line of the
electronic communication.
Additionally, as discussed in Part
I.C.1. of this Explanation of Provi-
sions, the Treasury Department and the
IRS are concerned that some customers
may not regularly check whether emails
have been sent to an email address that
the customer provided to the broker.
Because some customers may find it
useful to receive an electronic commu-
nication using an additional communi-
cation method or a paper document that
reminds them that they may have taxable
digital asset transactions that need to be
reported on their tax returns, proposed
§1.6045-1(k)(5)(ii)(B)(1) would require
the broker to provide the customer with
the opportunity to request a notice from
the broker informing the customer that
the customer’s 1099-DA statement has
been transmitted (requested notice).
See Part I.C.1. of this Explanation of
Provisions, for a discussion of the defi-
nition of an additional communication
method. If the customer requests this
requested notice by the end of the cal-
endar year to which the 1099-DA state-
ment relates, proposed §1.6045-1(k)(5)
(ii)(B)(1) would require the broker to
send this requested notice to the cus-
tomer on paper using the physical deliv-
ery method chosen by the broker (that is,
by mail or any private delivery service).
The broker may also offer to send this
requested notice to the customer using
any of the electronic delivery methods
described in proposed §1.6045-1(k)(5)
(ii)(C)(1)(i) through (iv). Regardless of
whether the broker offers to send the
notice by electronic delivery, proposed
§1.6045-1(k)(5)(ii)(C) would require
brokers to offer at least one type of phys-
ical delivery method. See Part I.C.1. of
this Explanation of Provisions, for a dis-
cussion of the definition of an additional
communication method. As discussed in
Part I.C.1. of this Explanation of Pro-
visions, the tax administration benefits
for the IRS and customers requesting
these requested notices should outweigh
the costs to brokers of providing them
because these requested notices should
be short communications as opposed to
potentially lengthy 1099-DA statements.
Finally, proposed §1.6045-1(k)(5)(ii)
(B)(4) would require these requested
notices include the following statement
in capital letters, “IMPORTANT TAX
RETURN DOCUMENT AVAILABLE.”
In addition, the email to which a 1099-
DA statement is attached must include
this statement on the subject line of
the email. If the customer requests a
requested notice, this statement must
be included prominently in the message
of that requested notice. This rule is
included to ensure that these customers
are made aware that they have received
these important communications.
3. Undeliverable Communications
Regarding 1099-DA Statements
Proposed §1.6045-1(k)(5)(ii)(A)(2)
and (k)(5)(ii)(B)(2) set forth rules for
what a broker must do if the broker’s elec-
tronically delivered notice or transmittal
is returned to the broker as undeliverable.
a. Communications regarding posted
1099-DA statements
Under proposed §1.6045-1(k)(5)(ii)
(A)(2), if a broker’s electronically deliv-
ered notice regarding an original 1099-
DA statement posted to an electronically
accessible specified location is returned
to the broker as undeliverable, the bro-
ker would generally be required to send
the notice by mail or private delivery
service within 30 days of receiving that
undeliverable response. Under proposed
§1.6045-1(k)(5)(ii)(A)(2)(ii), the bro-
ker would be able to avoid sending the
notice by mail or private delivery service
if the broker resends the emailed notice
to a corrected email address for the cus-
tomer within 30 days of the receipt of the
undeliverable communication and that
resent notice is not returned as undeliv-
erable. These rules are included to ensure
that the customer will receive the notice
regarding the 1099-DA statement in a
timely fashion.
Proposed §1.6045-1(k)(5)(ii)(A)(3)
would require the broker to send a notice
regarding the posting of a corrected 1099-
DA statement by mail or private delivery
service if the broker previously received
a communication that the original notice
(regarding the original 1099-DA state-
ment) was returned as undeliverable and
the broker was unable to obtain a correct
email address for the customer. This pro-
posed rule requiring the mailing of the
notice in this case is similar to the notice
requirement rule for corrected W-2 payee

Bulletin No. 2026–13 747 March 23, 2026
statements in §31.6501-1(j)(5)(iii).
10

Unlike the rules in §31.6501-1(j)(5)(iii),
proposed §1.6045-1(k)(5)(ii)(A)(3) would
enable a broker to avoid sending the notice
regarding the posting of a corrected 1099-
DA statement by mail or private delivery
service if the broker sends the customer
within five business days of the posting of
the corrected 1099-DA statement an email
notice regarding that statement to a cor-
rected email address for the customer that
is not returned as undeliverable. These
rules are included in these proposed reg-
ulations to ensure that the customer will
receive the notice regarding the corrected
1099-DA statement in a timelier fashion.
The Treasury Department and the
IRS considered but declined to propose
a rule that would allow brokers that send
requested notices to customers to avoid
mailing notices to customers when emailed
notices are returned as undeliverable for
several reasons. First, mail and email are
the most common communication meth-
ods, with most digital asset customers at
least aware that unexpected communica-
tions could be sent in this manner. Second,
many of the additional communication
methods do not have an undeliverable fea-
ture that would enable the broker to know
whether the customer received the com-
munication. Third, while brokers might be
able to use technology to determine if the
communication was opened, monitoring
which customers opened these communi-
cations would likely be more burdensome
than mailing the notices. Comments are
requested regarding the reliability of these
other communication methods in making
the customer aware of their important tax
documents.
b. Communications regarding direct
transmittals of 1099-DA statements
As discussed in Part I.C.2. of this
Explanation of Provisions, the 2004 Final
Regulations under section 6051 did not
provide any rules for brokers that attach
payee statements to emails. Because it is
important to provide brokers with clear
rules for whichever qualified electronic
delivery method they adopt, these pro-
posed regulations would include rules for
brokers that furnish 1099-DA statements
by attaching them to emails that are sim-
ilar to those that apply to brokers that
furnish 1099-DA statements by posting
them to electronically accessible spec-
ified locations. Accordingly, proposed
§1.6045-1(k)(5)(ii)(B)(1) would require
the email to which the 1099-DA statement
is attached to contain information similar
to that which the notice required under
proposed §1.6045-1(k)(5)(ii)(A)(1) would
be required to contain. Additionally, under
proposed §1.6045-1(k)(5)(ii)(B)(2), if
a broker’s direct transmittal of an origi-
nal 1099-DA statement is returned to the
broker as undeliverable, the broker would
be required to send the original 1099-
DA statement to the customer by mail or
private delivery service within 30 days
of receiving that undeliverable response
unless the broker sends another email to
which the 1099-DA statement is attached
within five business days of receipt of the
undeliverable communication to a cor-
rected email address for the customer that
is not returned as undeliverable.
The Treasury Department and the IRS
are aware that the consequence of an
undeliverable direct transmittal of a 1099-
DA statement by email under this rule
could be costly if the broker is unable to
obtain a corrected email address for the
customer that is not returned as undeliver-
able because the broker would be required
to provide a paper 1099-DA statement to
the customer. Comments are requested
regarding whether brokers anticipate
using the direct transmittal method of
delivery, whether this consequence of an
undeliverable direct transmittal of a 1099-
DA statement makes the direct transmittal
method not viable, and whether the direct
transmittal method should be removed
from the final regulations as a qualified
electronic delivery method. Comments
are also requested regarding whether there
are other less burdensome alternatives
for brokers choosing to furnish 1099-DA
statements using the direct transmittal
method when emails to which the 1099-
DA statements are attached are returned
as undeliverable. Finally, comments are
requested addressing whether there are
any other methods of electronically deliv-
ering the 1099-DA statements that should
be included as a qualified electronic deliv-
ery method.
4. Corrected 1099-DA Statements
The regulations under §31.6051-
1(j) include rules for furnishers that are
required to furnish corrected payee state-
ments. Specifically, under §31.6051-1(j)
(5)(iii), if the furnisher electronically fur-
nished the original payee statement, the
furnisher must also electronically furnish
the corrected payee statement. The pro-
posed rules adopt a similar rule for bro-
kers required to furnish corrected 1099-
DA statements. Thus, under proposed
§1.6045-1(k)(5)(ii), if a broker has cor-
rected a customer’s 1099-DA statement,
the broker would be required to furnish
the corrected 1099-DA statement using
the same delivery method that the bro-
ker used to furnish the original 1099-DA
statement for that delivery method to be
treated as a qualified electronic delivery
method.
Additionally, under the proposed reg-
ulations, any required or requested notice
that the broker was required to provide to
the customer regarding the availability of
the original 1099-DA statement (either
because it has been posted to an elec-
tronically accessible specified location or
directly transmitted) must also be provided
with respect to the availability of the cor-
rected 1099-DA statement. See proposed
§1.6045-1(k)(5)(ii)(A)(3) and (k)(5)(ii)
(B)(3). In addition, proposed §1.6045-
1(k)(5)(ii)(A)(3) and (k)(5)(ii)(B)(3)
would require the broker to provide any
required and requested notices regarding
the availability of the corrected 1099-DA
statement within five business days from
the date the corrected 1099-DA statement
has either been posted to an electronically
accessible specified location or attached
to, or otherwise included with, an email
sent to the customer. This five-business
day rule, instead of the 30-day rule gen-
erally applicable to communications relat-
ing to the original 1099-DA statement, is
proposed to provide customers enough
time to prepare and timely file their tax
returns after receiving the corrected 1099-
10
Section 4.6 of Publication 1179 does not specifically address the notice requirements for corrected payee statements, but cross references readers to §31.6051-1(j) for more information.

March 23, 2026 748 Bulletin No. 2026–13
DA statements. Accordingly, under these
proposed rules, if the original 1099-DA
statement was posted on the broker’s
website, then the broker must also post the
corrected 1099-DA statement on the bro-
ker’s website and provide to the customer
the required notice and, if applicable, the
requested notice regarding that corrected
posting within five business days of that
posting. Alternatively, if the original
1099-DA statement was directly transmit-
ted to a customer, the broker must directly
transmit the corrected 1099-DA statement
and, if applicable, the requested notice
notifying the customer of that transmittal,
within five business days of that trans-
mittal. Comments are requested regard-
ing the shortened notice requirement for
corrected 1099-DA statements. See Part
I.C.3. of this Explanation of Provisions
for a discussion of the broker’s obliga-
tions with respect to the corrected 1099-
DA statement if a previous email regard-
ing the original 1099-DA statement was
returned as undeliverable.
D. Continuing disclosures
The rules under §31.6051-1(j)(3) and
the guidance under section 4.6.2 of Publi-
cation 1179 do not include any continuing
disclosure requirements after consent is
given. However, because certain infor-
mation that is included in the pre-consent
disclosure as well as certain other infor-
mation is more relevant to customers after
the consent is provided, this information
should be available to customers on an
ongoing basis (continuing disclosures)
after consent is provided so that custom-
ers can get the answers to their ques-
tions or change their contact information
when appropriate. Accordingly, proposed
§1.6045-1(k)(5)(iv)(A) would require the
broker to provide a location, such as on
the broker’s website, mobile device appli-
cation, or other online platform, where
customers can generally find updated
versions of the pre-consent disclosure
information proposed §1.6045-1(k)(5)(iii)
(C)(1) through (7) through the period of
time that customers would need to access
their 1099-DA statements. See Part I.B.3.
of this Explanation of Provisions for a
discussion of this pre-consent disclosure
information and Part I.F. of this Explana-
tion of Provisions for a discussion of the
access period through which this updated
information should be provided.
In addition, proposed §1.6045-1(k)(5)
(iv)(A) would also require the broker to
provide to the customer on an ongoing
basis four additional items of informa-
tion that are typically not relevant to the
customer at the time of consent. Proposed
§1.6045-1(k)(5)(iv)(A) would permit the
information included in the continuing
disclosures to generally be provided by
the broker to the customer on the broker’s
website, mobile device application, or
other online platform.
Like the concern discussed in Part
I.B.3. of this Explanation of Provisions
with respect to customers that transact
with brokers exclusively through one
or more physical electronic terminals or
kiosks and customers that transact with
PDAP brokers, the Treasury Department
and the IRS are concerned that these
customers will not have access to the
continuing disclosures if they are made
available only on the broker’s website,
mobile device application, or other online
platform. Accordingly, to ensure that these
customers have access to the continuing
disclosures, proposed §1.6045-1(k)(5)
(iv)(A) would provide that PDAP brokers
and brokers that transact exclusively with
a customer through one or more physical
electronic terminals or kiosks must also
provide the continuing disclosures to their
customer by email, mail, or private deliv-
ery service within five business days of
the customer’s explicit action to provide
consent. Additionally, if a PDAP broker
or a broker that transacts exclusively with
a customer through one or more physical
electronic terminals or kiosks updates the
information in the continuing disclosures,
proposed §1.6045-1(k)(5)(iv)(A) would
provide that the broker must also provide
updated versions of the continuing disclo-
sures to the customer by email, mail, or
private delivery service within five busi-
ness days of posting the updated version
of the continuing disclosures to the bro-
ker’s website, mobile device application,
or other online platform. Finally, to the
extent the customer requested to receive
the disclosure statement using an addi-
tional communication method at the time
of consent or anytime thereafter, proposed
§1.6045-1(k)(5)(iv)(A) would require the
broker to also send the continuing disclo-
sure statement and any updated versions
of that statement to the customer using
the additional communication method
requested by the customer. See Part I.C.
of this Explanation of Provisions for a dis-
cussion of why customers should be given
the opportunity to request that these dis-
closure statements be sent using an addi-
tional communication method. Comments
are requested regarding this additional
requirement for continuing disclosures for
PDAP brokers and brokers that transact
with customers exclusively through one
or more physical terminals or kiosks.
The additional information that would
be included in the continuing disclosures
are described in proposed §1.6045-1(k)
(5)(iv)(B) through (E). First, proposed
§1.6045-1(k)(5)(iv)(B) would require
the broker to provide a description of the
procedures for customers to update the
information needed by the broker to send
the customer the required and requested
notices that the 1099-DA statement has
been posted to a specified location that
is electronically accessible, the email to
which the 1099-DA statement is attached,
or the requested notice informing the
customer that the customer’s 1099-DA
statement has been transmitted. Second,
proposed §1.6045-1(k)(5)(iv)(C) would
require the broker to provide the broker’s
contact information in the event the cus-
tomer has questions about the consent or
about the customer’s 1099-DA statement.
Third, proposed §1.6045-1(k)(5)(iv)
(D) would require the broker to provide
a description of the procedures for ask-
ing for the requested notices required to
be offered by proposed §1.6045-1(k)(5)
(ii)(A)(1) (that the customer’s 1099-DA
statements have been posted to an elec-
tronically accessible specified location)
or by proposed §1.6045-1(k)(5)(ii)(B)(1)
(that the customer’s 1099-DA statement
has been transmitted) using an additional
communication method. Finally, for bro-
kers that will furnish 1099-DA statements
by posting them to an electronically
accessible specified location, proposed
§1.6045-1(k)(5)(iv)(E) would require the
broker to provide information about the
period of time that the broker will keep
1099-DA statements and corrected 1099-
DA statements posted to that specified
location. This must include the date when
the 1099-DA statements will no longer

Bulletin No. 2026–13 749 March 23, 2026
be available at the specified location and
a description of the procedures for cus-
tomers to obtain 1099-DA statements and
corrected 1099-DA statements that are no
longer available at the specified location.
E. Format
Like the format requirement in
§31.6051-1(j)(4), proposed §1.6045-1(k)
(5)(v) would require that the electronic
version of a 1099-DA statement furnished
to a customer contain all required infor-
mation and comply with applicable reve-
nue procedures relating to substitute state-
ments.
F. Access period
Once electronically furnished 1099-
DA statements have been posted to an
electronically accessible specified loca-
tion, such as the broker’s website, mobile
device application, or other online plat-
form, it is essential that 1099-DA state-
ments remain available for customers’ use
throughout the tax return filing season.
Accordingly, similar to the access rules
provided in §31.6051-1(j)(6), proposed
§1.6045-1(k)(5)(vi) would require bro-
kers to maintain access for customers to
1099-DA statements posted on a website
through October 15 of the year following
the calendar year to which the 1099-DA
statements relate. Additionally, proposed
§1.6045-1(k)(5)(vi) would require brokers
to maintain access for customers to cor-
rected 1099-DA statements that are posted
on the broker’s website through October
15 of the year following the calendar year
to which the statements relate or the date
that is 90 days after the corrected state-
ments are posted, whichever is later. The
normal rules under section 7503 of the
Code for when the last day prescribed
for performing an act falls on a Saturday,
Sunday, or a legal holiday would apply
to these deadlines. Thus, for example, if
October 15 falls on a Saturday, Sunday,
or legal holiday, the 1099-DA statements
would be required to be retained on the
broker’s website until the first business
day after such October 15.
Finally, it is important that customers
seeking to amend their timely filed tax
returns have access to their 1099-DA state-
ments during the general three-year period
of limitations on assessment under sec-
tion 6501(a) and also during the six-year
period of limitations on assessment under
section 6501(e) for substantial omissions
from gross income. These statute of lim-
itations periods will generally begin to
apply for most individual taxpayers after
the April 15 filing due date for Federal
income tax returns. Accordingly, because
the due date for furnished 1099-DA state-
ments is February 15 of the calendar year
following the year of the digital asset sale
transaction, proposed §1.6045-1(k)(5)(vi)
would require brokers to retain and make
available to customers upon request pre-
viously furnished 1099-DA statements for
seven years from the date the 1099-DA
statements are required to be furnished or
(if later) the date that the 1099-DA state-
ments are actually furnished to ensure that
their customers will have access to all the
records they need during the six years that
the period of limitations is open. Requir-
ing brokers to provide access to these
statements for seven years from their
furnishing would also assist taxpayers
who have not complied with Federal tax
return filing obligations, and for whom the
statute of limitations is open indefinitely
under section 6501(c)(3). Seven years
strikes a reasonable balance for individual
taxpayer compliance and the burden on
brokers for retaining this information.
Comments are requested regarding
whether this additional retention require-
ment creates any undue burdens for bro-
kers.
II. Electronic Furnishing of Consolidated
Reporting Statements
The proposed regulations generally
leave in place the existing consolidated
reporting statement rules in §1.6045-1(k)
(3), which requires that any furnished
statements included with a consolidated
reporting statement required to be fur-
nished under section 6045 be based on
the same relationship of broker or barter
exchange to customer as the statement
required to be furnished under section
6045. Proposed §1.6045-1(k)(3) would
amend existing §1.6045-1(k)(3) by adding
paragraph headings to existing §1.6045-
1(k)(3)(i) and (ii).
Proposed §1.6045-1(k)(3)(iii) would
add rules regarding when a consolidated
reporting statement is permitted to be
furnished electronically. Under these
proposed rules, a broker would be per-
mitted to furnish a consolidated report-
ing statement in an electronic format in
lieu of on paper if it has obtained consent
from the customer under the applicable
rules for consent for each of the state-
ments to be included in the consolidated
reporting statement. Therefore, to com-
bine a 1099-B statement with respect to
a sale of stock and a 1099-DA statement
with respect to a sale of digital assets in
an electronically furnished consolidated
reporting statement, the broker would
need to obtain consent from the customer
with respect to the electronic furnishing
of the 1099-B statement under the guid-
ance set forth in section 4.6.2 of Pub-
lication 1179 (which generally follows
the rules under §31.6051-1(j)) and con-
sent from the customer with respect to
the electronic furnishing of the 1099-DA
statement either under the guidance set
forth in section 4.6.2 of Publication 1179
or the rules set forth in proposed §1.6045-
1(k)(5). Proposed §1.6045-1(k)(5)(vii)
would provide an example illustrating the
application of this rule to facts involv-
ing a broker required to furnish both a
1099-B statement and a 1099-DA state-
ment to the same customer. Comments
are requested regarding whether the
receipt from the same broker of a paper
statement with respect to some payments
and an electronic statement with respect
to other payments could potentially lead
to confusion for customers and whether
brokers should be required to include a
clear communication with each statement
in such circumstances that another state-
ment will be provided separately to mini-
mize the risk of confusion.
III. Electronic Furnishing of 1099-B
Statements and Other Payee Statements
The cost of furnishing 1099-B state-
ments and other payee statements on
paper can also result in compliance bur-
dens to brokers. This is particularly true
when customers engage in significant
daily, and in some cases algorithmic,
trading. However, unlike transactions
involving digital assets, which are almost
exclusively conducted through electronic
means by a population comfortable trans-

March 23, 2026 750 Bulletin No. 2026–13
acting in such medium, it is likely that
some investors who engage in securities
and commodities transactions will not
have a similar level of comfort. Because
it is essential to effective tax administra-
tion that all investors, including those
uncomfortable with website technol-
ogy, mobile device applications or other
online platforms, or emailed attachments,
have the ability to conveniently access
their furnished 1099-B statements, these
proposed regulations would only apply to
brokers that are required to furnish 1099-
DA statements reflecting information
reportable to the IRS on Form 1099-DA
and would not apply to any other payee
statements.
The sale by a customer of an inter-
est in a widely held fixed investment
trust (WHFIT) that holds digital assets
is reported to the IRS on Form 1099-B
instead of on Form 1099-DA, and brokers
are not required to furnish statements to
customers reflecting information report-
able to the IRS on Form 1099-DA.
Accordingly, these new proposed con-
sent rules would not apply to brokers that
report information regarding their cus-
tomers’ sales of interests in WHFITs that
hold digital assets to the IRS on Form
1099-B.
The Treasury Department and the IRS
are, however, considering whether to
propose less burdensome consent proce-
dures for customers that receive a 1099-B
statement and recipients that receive cer-
tain other payee statements. To facilitate
the receipt of comments from the public
regarding the issues involved with elec-
tronic furnishing of 1099-B statements
and certain other payee statements more
broadly, Notice 2026-4 is being issued
contemporaneously with these proposed
regulations to request comments on the
broader issues involved in these other
circumstances. This notice will be pub-
lished in the Internal Revenue Bulletin.
Comments regarding these other payee
statements should not be submitted in
response to these proposed regulations but
instead should be submitted in accordance
with the instructions provided in Notice
2026-4. Comments submitted on 1099-B
statements or other payee statements will
not be considered or incorporated into any
final regulation that results from these
proposed regulations.
Applicability Dates
The proposed regulations would apply
to 1099-DA statements required to be fur-
nished on or after January 1 of the calen-
dar year immediately following [date of
publication of final regulations in the Fed-
eral Register].
Special Analyses
I. Regulatory Planning and Review
These proposed regulations are not
subject to review under section 6(b) of
Executive Order 12866 pursuant to the
Memorandum of Agreement (July 4,
2025) between the Treasury Department
and the Office of Management and Budget
regarding review of tax regulations.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) generally
requires that a Federal agency obtain the
approval of the Office of Management and
Budget (OMB) before collecting infor-
mation from the public, whether such
collection of information is mandatory,
voluntary, or required to obtain or retain
a benefit. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control number
assigned by the OMB.
The collection of information in these
proposed regulations contain third party
information reporting and recordkeeping
requirements. The collection of informa-
tion contained in proposed §1.6045-1(k)
is required only if a person required to fur-
nish a taxpayer with a 1099-DA statement
chooses to furnish that statement elec-
tronically under the proposed regulations
instead of on paper or electronically under
existing guidance set forth in Publication
1179 permitting electronic furnishing of
payee statements. The collected informa-
tion will be used by the broker to deter-
mine whether the broker’s customer has
consented to receive the 1099-DA state-
ment electronically. Additionally, if a bro-
ker’s customer has consented to receive
the 1099-DA statement electronically,
proposed §1.6045-1(k) would require the
retention of information for a period that
is longer than the access period required
under §1.6051-1(j)(6) and set forth in sec-
tion 4.3.6 of Publication 1179.
The proposed regulations mention third
party information reporting and record-
keeping requirements related to the disposi-
tion of digital assets, as detailed in §1.6045-
1(k). The burden for these requirements is
included with the Form and Instructions
for Form 1099-DA, Digital Asset Proceeds
From Broker Transactions. The Form and
Instructions for Form 1099-DA are already
approved by OMB under control number
1545-2330. These proposed regulations
are not creating or changing these already
approved collections.
III. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6), it is hereby certi-
fied that this proposed regulation will not
have a significant economic impact on a
substantial number of small entities. The
proposed regulation would affect bro-
kers, which may meet the definition of
“small entity” in 5 U.S.C. 601(6). How-
ever, because these proposed regulations
would provide brokers with an additional
option for electronically furnishing payee
statements, the certification is based on
this proposed regulation not imposing
any additional obligations on small enti-
ties than that which is already imposed by
existing regulations and Form 1099-DA.
IV. Submission to Small Business
Administration
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel for the Office of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal man-
date that may result in expenditures in any
one year by a State, local, or Tribal gov-
ernment, in the aggregate, or by the pri-
vate sector, of $100 million in 1995 dol-

Bulletin No. 2026–13 751 March 23, 2026
lars, updated annually for inflation. This
proposed regulation does not include any
Federal mandate that may result in expen-
ditures by State, local, or Tribal govern-
ments, or by the private sector in excess of
that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local gov-
ernments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Execu-
tive order. This proposed regulation does
not have federalism implications, does
not impose substantial direct compliance
costs on State and local governments, and
does not preempt State law within the
meaning of the Executive order.
Comments and Requests for a Public
Hearing
Before these proposed amendments to
the regulations are adopted as final regu-
lations, consideration will be given to any
comments that are submitted timely to the
IRS as prescribed in this preamble under
the ADDRESSES heading. The Treasury
Department and the IRS request com-
ments on all aspects of the proposed rules.
All comments that are submitted by the
public will be made available at https://
www.regulations.gov. Once submitted to
the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn.
A public hearing will be scheduled if
requested in writing by any person who
timely submits electronic or written com-
ments. Requests for a public hearing also
are encouraged to be made electronically.
If a public hearing is scheduled, notice of
the date and time for the public hearing
will be published in the Federal Register.
Statement of Availability of IRS
Documents
IRS Revenue Procedures, Revenue
Rulings, Notices and other guidance cited
in this document are published in the Inter-
nal Revenue Bulletin and are available
from the Superintendent of Documents,
U.S. Government Publishing Office,
Washington, DC 20402, or by visiting the
IRS website at https://www.irs.gov.
Drafting Information
The principal authors of these reg-
ulations are Roseann Cutrone and Jes-
sica Chase, Office of the Associate Chief
Counsel (Procedure and Administration).
However, other personnel from the Trea-
sury Department and the IRS participated
in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 1 as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by removing the first
occurrence of the entry for §1.6045-1 to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 1.6045-1 also issued under 26
U.S.C. 6045(a).
* * * * *
Par. 2. Section 1.6045-0 is amended
by, in the table of contents for §1.6045-1:
1. Adding entries for paragraphs (k)(3)
(i) through (iv);
2. Removing and reserving the entry
for paragraph (k)(4); and
3. Adding entries for paragraphs (k)(5)
through (7).
The revisions and additions read as fol-
lows:
§1.6045-0 Table of contents.
* * * * *
§1.6045-1 Returns of information of
brokers and barter exchanges.
* * * * *
(k) * * *
(3) * * *
(i) In general.
(ii) Due date for furnishing consoli-
dated reporting statements.
(iii) Electronic furnishing of consoli-
dated reporting statements.
(iv) Examples.
* * * * *
(5) Electronic furnishing of 1099-DA
statements.
(i) In general.
(ii) Qualified electronic delivery
method.
(A) Posted to an electronically accessi-
ble specified location.
(1) In general.
(2) Undeliverable address.
(3) Corrected 1099-DA statement.
(4) Required information for notices.
(B) Direct transmittal.
(1) In general.
(2) Undeliverable address.
(3) Corrected 1099-DA statement.
(4) Required information for emails
and notices.
(C) Additional communication method.
(iii) Consent.
(A) In general.
(B) Change in hardware or software
requirements.
(C) Disclosure statement.
(1) Scope of consent.
(2) Hardware and software require-
ments.
(3) Qualified electronic delivery method.
(4) Notification method.
(5) Consequences of non-consent.
(6) Withdrawal of consent.
(7) Further information.
(D) Examples.
(iv) Continuing disclosures.
(A) In general.
(B) Updating information.
(C) Broker information.
(D) Additional communication meth-
ods for requested notices.
(E) Access procedures for statements
posted to an electronically accessible
specified location.
(v) Format.
(vi) Access period for statements
posted to an electronically accessible
specified location.
(vii) Example of rules for electronic
furnishing of consolidated reporting state-
ments.

March 23, 2026 752 Bulletin No. 2026–13
(6) Applicability date.
(7) Cross-reference to penalty.
* * * * *
Par. 3. Section 1.6045-1 is amended
by:
1. Revising and republishing paragraph
(k)(1);
2. Adding paragraph headings to para-
graphs (k)(3)(i) and (ii);
3. Redesignating paragraph (k)(3)(iii)
as paragraph (k)(3)(iv);
4. Adding new paragraph (k)(3)(iii);
5. In newly redesignated paragraph (k)
(3)(iv), designating Examples 1 through 4
as paragraphs (k)(3)(iv)(A) through (D),
respectively;
6. In newly designated paragraph (k)(3)
(iv)(B), removing the language “Assume
the same facts as in Example 1” and add-
ing the language “The facts are the same
as in paragraph (k)(3)(iv)(A) of this sec-
tion (the facts in Example 1)” in its place;
7. In newly designated paragraph (k)(3)
(iv)(D), removing the language “Assume
the same facts as in Example 3” and add-
ing the language “The facts are the same
as in paragraph (k)(3)(iv)(C) of this sec-
tion (the facts in Example 3)” in its place;
8. Redesignating paragraph (k)(4) as
paragraph (k)(7);
9. Adding and reserving new paragraph
(k)(4); and
10. Adding paragraphs (k)(5) and (6).
The revisions and additions read as fol-
lows:
§1.6045-1 Returns of information of
brokers and barter exchanges.
* * * * *
(k) * * *
(1) General requirements. A broker or
barter exchange making a return of infor-
mation under this section must furnish to
the person whose identifying number is
(or is required to be) shown on the return
(customer) a written statement showing
the information required to be reported
under this section and containing a leg-
end stating that the information is being
reported to the Internal Revenue Service.
If the return of information is not made on
magnetic media or in electronic form, this
requirement may be satisfied by furnish-
ing to the customer a copy of all Forms
1099 or any successor form for the cus-
tomer filed with the Internal Revenue Ser-
vice Center. A statement is considered to
be furnished to a customer if it is mailed
to the customer using any mail or private
delivery service chosen by the broker at
the last address of the person known to the
broker or barter exchange. See paragraph
(k)(5) of this section for rules regarding
when certain written statements described
in this paragraph (k)(1) may be furnished
to a customer in an electronic format.
* * * * *
(3) * * *
(i) In general. * * *
(ii) Due date for furnishing consoli-
dated reporting statements. * * *
(iii) Electronic furnishing of consoli-
dated reporting statements. A broker may
furnish a consolidated reporting statement
described in this paragraph (k)(3) in an
electronic format in lieu of a paper format
if it has met the applicable requirements
for consent and other associated rules
under either the procedures set forth in
the applicable revenue procedures relat-
ing to electronic delivery of payee state-
ments generally or by following the rules
set forth in paragraph (k)(5) of this section
relating to electronic delivery by a broker
of payee statements showing the informa-
tion required to be reported to the IRS on
Form 1099-DA, Digital Asset Proceeds
From Broker Transactions, or successor
form (1099-DA statements), as applica-
ble, to be treated as furnishing each of the
statements included in the consolidated
reporting statements in a timely manner.
* * * * *
(4) [Reserved]
(5) Electronic furnishing of 1099-
DA statements—(i) In general. A bro-
ker required by section 6045(b) and this
paragraph (k) to furnish a written state-
ment showing the information required
to be reported to the IRS on Form 1099-
DA, Digital Asset Proceeds From Broker
Transactions, or successor form (1099-
DA statement) to a customer may furnish
the 1099-DA statement in an electronic
format in lieu of a paper format either
by following the procedures set forth in
the applicable revenue procedures relat-
ing to electronic delivery of payee state-
ments or by using a qualified electronic
delivery method as defined in paragraph
(k)(5)(ii) of this section and meeting the
requirements set forth in paragraphs (k)
(5)(iii) through (vi) of this section. A bro-
ker that meets the requirements set forth
in paragraphs (k)(5)(iii) through (vi) of
this section and that furnishes a 1099-
DA statement using a qualified electronic
delivery method described in paragraph
(k)(5)(ii)(A)(1) of this section (posting to
an electronically accessible specified loca-
tion) is treated as furnishing the required
1099-DA statement on the last of the fol-
lowing three dates: the date that the broker
sends to the customer the required notice
by email informing the customer that the
customer’s 1099-DA statement has been
so posted; the date that the broker sends
to the customer the requested notice, if
requested by the customer in the manner
described in paragraph (k)(5)(ii)(A)(1) of
this section; and the date that the broker
posts the customer’s 1099-DA statement
to an electronically accessible specified
location as described in paragraph (k)(5)
(ii)(A)(1) of this section. A broker that
meets the requirements set forth in para-
graphs (k)(5)(iii) through (vi) of this sec-
tion and who furnishes a 1099-DA state-
ment using a qualified electronic delivery
method described in paragraph (k)(5)(ii)
(B)(1) of this section (direct transmittal)
is treated as furnishing the required 1099-
DA statement on the later of the date that
such transmittal is sent to the customer
or the date that the broker sends to the
customer the requested notice informing
the customer that the customer’s 1099-
DA statement has been transmitted as
described in paragraph (k)(5)(ii)(B)(1) of
this section, if requested by the customer
in the manner described in paragraph (k)
(5)(ii)(B)(1) of this section.
(ii) Qualified electronic delivery
method. For purposes of this paragraph (k)
(5), a qualified electronic delivery method
means either of the delivery methods
described in paragraphs (k)(5)(ii)(A) and
(B) of this section. If the broker has cor-
rected a customer’s 1099-DA statement,
to be treated as furnishing the corrected
1099-DA statement using a qualified
electronic delivery method, the corrected
1099-DA statement must be furnished
using the same qualified electronic deliv-
ery method by which the original 1099-
DA statement was furnished.
(A) Posted to an electronically acces-
sible specified location—(1) In general.
A qualified electronic delivery method
means the posting of a 1099-DA state-

Bulletin No. 2026–13 753 March 23, 2026
ment to an electronically accessible spec-
ified location, such as the broker’s web-
site, mobile device application, or other
online platform, if the broker provides
the customer with a notice containing the
information described in paragraph (k)(5)
(ii)(A)(4) of this section that the 1099-
DA statement has been posted. Except as
provided in paragraph (k)(5)(ii)(A)(2) of
this section, this notice must be sent to the
customer by email. In addition, the broker
must provide the customer with the oppor-
tunity to receive another notice from the
broker using an additional communication
method described in paragraph (k)(5)(ii)
(C) of this section if requested by the cus-
tomer not later than the end of the calen-
dar year to which the 1099-DA statement
relates (requested notice).
(2) Undeliverable address. Except in
the case of a notice that a corrected 1099-
DA statement has been posted to an elec-
tronically accessible specified location,
the broker must furnish to the customer
a notice that an original 1099-DA state-
ment has been posted to the electronically
accessible specified location by any mail
or private delivery service chosen by the
broker within 30 days after an emailed
notice is returned to the broker as unde-
liverable unless prior to that date the bro-
ker sends to the customer another email
notice to a corrected email address that is
not returned as undeliverable.
(3) Corrected 1099-DA statement. If
the broker has corrected a customer’s
1099-DA statement, the broker must pro-
vide the customer with notice that the cor-
rected 1099-DA statement has been posted
to the electronically accessible specified
location within five business days of such
posting. The broker must send this notice
to the customer by email. In addition, if
the customer asked for a requested notice
described in paragraph (k)(5)(ii)(A)(1) of
this section, the broker must also send the
notice regarding the posting of the cor-
rected 1099-DA statement to the customer
using the same additional communica-
tion method as that used for the requested
notice regarding the original 1099-DA
statement. A notice that a corrected 1099-
DA statement has been posted to the elec-
tronically accessible specified location
must be sent to the customer using any
mail or private delivery service chosen by
the broker if the emailed notice regard-
ing the original 1099-DA statement was
returned as undeliverable unless the bro-
ker sends within five business days of
such posting an email notice regarding
the corrected 1099-DA statement to a cor-
rected email address for the customer that
is not returned as undeliverable.
(4) Required information for notices.
Any notice required by paragraphs (k)(5)
(ii)(A)(1) through (3) of this section must
include instructions on how to access,
download, and print the 1099-DA state-
ment. The notice must also include the
following statement in capital letters,
“IMPORTANT TAX RETURN DOCU-
MENT AVAILABLE.” A notice provided
by email must include the foregoing state-
ment on the subject line of the email. A
requested notice described in paragraph
(k)(5)(ii)(A)(1) of this section must
include the foregoing statement promi-
nently in the message of that requested
notice.
(B) Direct transmittal—(1) In general.
A qualified electronic delivery method
also includes the transmittal of a 1099-
DA statement directly to the customer
by means of being attached to, or other-
wise included with, an email containing
the information described in paragraph
(k)(5)(ii)(B)(4) of this section. A broker
that transmits the 1099-DA statement
to the customer under this paragraph (k)
(5)(ii)(B)(1) must offer the customer the
opportunity to request a notice from the
broker informing the customer that the
customer’s 1099-DA statement has been
transmitted by email (requested notice).
If this notice is requested by the customer
by the end of the calendar year to which
the 1099-DA statement relates, the broker
must send the requested notice to the cus-
tomer using the customer’s choice of addi-
tional communication methods described
in paragraph (k)(5)(ii)(C) of this section.
This requested notice must also contain
the information described in paragraph (k)
(5)(ii)(B)(4) of this section.
(2) Undeliverable address. Except in
the case of a direct transmittal of a cor-
rected 1099-DA statement, the broker
must furnish the original 1099-DA state-
ment to the customer using any mail or
private delivery service chosen by the
broker within 30 days after the email to
which the 1099-DA statement is attached
is returned as undeliverable unless the
broker sends another email to which the
1099-DA statement is attached within
five business days of receipt of the unde-
liverable communication to a corrected
email address for the customer that is not
returned as undeliverable.
(3) Corrected 1099-DA statement. If
the broker has transmitted a corrected
1099-DA statement to a customer that has
asked for a requested notice described in
paragraph (k)(5)(ii)(B)(1) of this section
by the end of the calendar year to which
the 1099-DA statement relates, the broker
must also provide that customer within
five business days of the transmittal with
the requested notice of the transmittal of
the corrected 1099-DA statement using
the same additional communication
method as that used for the requested
notice regarding the original 1099-DA
statement. The broker must furnish a
corrected 1099-DA statement using any
mail or private delivery service chosen
by the broker if the email to which the
original 1099-DA statement was attached
was returned as undeliverable unless the
broker sends another email to which the
corrected 1099-DA statement is attached
within five business days of receipt of the
undeliverable communication to a cor-
rected email address for the customer that
is not returned as undeliverable.
(4) Required information for emails
and notices. An email to which a 1099-DA
statement is attached and any requested
notice required by paragraphs (k)(5)(ii)
(B)(1) and (3) of this section must include
instructions on how to access, download,
and print the 1099-DA statement. The
email to which a 1099-DA statement is
attached and the requested notice must also
include the following statement in capital
letters, “IMPORTANT TAX RETURN
DOCUMENT AVAILABLE.” The email
to which a 1099-DA statement is attached
must include the foregoing statement on
the subject line of the email. A requested
notice described in paragraph (k)(5)(ii)(B)
(1) of this section must include the forego-
ing statement prominently in the message
of that requested notice.
(C) Additional communication method.
For purposes of this section, a commu-
nication will be treated as sent using an
additional communication method if the
broker sends the communication to the
customer using the customer’s choice of

March 23, 2026 754 Bulletin No. 2026–13
physical delivery in the manner described
in paragraph (k)(5)(ii)(C)(2) of this sec-
tion or, to the extent offered by the broker,
electronic delivery to the locations in the
manner described in paragraph (k)(5)(ii)
(C)(1) of this section.
(1) Electronic delivery. A communica-
tion is sent by electronic delivery if it is
sent to any of the following locations--
(i) To the customer’s cellular phone
number;
(ii) To the customer’s in-account mes-
saging system with the broker (including
in-application and in-website messaging);
(iii) To the customer’s cellular device
in a manner that can be viewed when the
customer’s account application with the
broker is not open;
(iv) To any other electronic messaging
address.
(2) Physical delivery. A communica-
tion is sent by physical delivery if it sent
by way of any mail or private delivery ser-
vice chosen by the broker.
(iii) Consent—(A) In general. The cus-
tomer must positively consent to receive
the 1099-DA statement in an electronic
format. The consent may be made elec-
tronically in any manner that requires the
customer to take an explicit action to pro-
vide consent, such as by checking a box,
clicking a button, or completing a fill-in
screen. The customer’s consent to receive
the 1099-DA statement in an electronic
format must relate solely to the 1099-DA
statement and be separate from any other
consent provided by the customer. In addi-
tion, prior to, or at the time of, a custom-
er’s consent, the broker must provide to
the customer a clear and conspicuous dis-
closure statement in the manner set forth
in paragraph (k)(5)(iii)(C) of this section,
containing each of the disclosures set forth
in paragraphs (k)(5)(iii)(C)(1) through (7)
of this section.
(B) Change in hardware or software
requirements. If the broker intends to
adopt a change in the method by which
the customer will need to access, down-
load, and print the 1099-DA statement
furnished in the electronic format, includ-
ing the hardware or software the customer
will need to conduct these functions, and
that change creates a material risk that
the customer would need to purchase or
otherwise obtain new hardware or acquire
or otherwise download new software to
access the 1099-DA statement in the new
electronic format, before implementing
the change, the broker must obtain a new
consent to receive the 1099-DA state-
ment in the new electronic format from
the customer in the manner described in
paragraph (k)(5)(iii)(A) of this section and
must provide to the customer a disclosure
statement containing updated disclosures
of the information set forth in paragraph
(k)(5)(iii)(C) of this section through the
access period described in paragraph (k)
(5)(vi) of this section with respect to that
customer.
(C) Disclosure statement. The clear and
conspicuous disclosure statement required
to be provided to the customer prior to, or
at the time of, a customer’s consent pursu-
ant to paragraph (k)(5)(iii)(A) of this sec-
tion, may be provided by the broker in any
manner that is part of the consent solici-
tation, including as a link to another page
on the broker’s website, mobile device
application, or other online platform.
Notwithstanding the previous sentence,
a broker that transacts with a customer
exclusively through one or more physical
electronic terminals or kiosks and a bro-
ker that effects sales of digital assets for
a customer as a processor of digital asset
payments as defined in paragraph (a)(22)
of this section must also send this disclo-
sure statement to the customer by email or
using any mail or private delivery service
chosen by the broker within five business
days of the customer’s explicit action to
provide consent as described in paragraph
(k)(5)(iii)(A) of this section. Additionally,
the broker must provide the customer with
the opportunity to receive the disclosure
statement using an additional communi-
cation method described in paragraph (k)
(5)(ii)(C) of this section if requested by
the customer at the time of consent. The
disclosure statement provided to the cus-
tomer prior to, or at the time of, a custom-
er’s consent must include the information
described in paragraphs (k)(5)(iii)(C)(1)
though (7) of this section.
(1) Scope of consent. The disclosure
statement must inform the customer that
the provided consent shall apply to all
1099-DA statements required to be fur-
nished by the broker.
(2) Hardware and software require-
ments. The disclosure statement must
describe the method by which the cus-
tomer will need to access, download, and
print the 1099-DA statement furnished in
the electronic format, including the hard-
ware or software the customer will need to
conduct these functions.
(3) Qualified electronic delivery
method. The disclosure statement must
describe the specific qualified electronic
delivery method that the broker will use
to furnish the 1099-DA statement to the
customer.
(4) Notification method. If the broker
will furnish the 1099-DA statement using
a qualified electronic delivery method
described in paragraph (k)(5)(ii)(A) of
this section (posting to an electronically
accessible specified location), the dis-
closure statement must specify that the
broker will notify the customer by email
that the 1099-DA statement has been
posted to the electronically accessible
specified location and that the customer
may ask for a requested notice described
in paragraph (k)(5)(ii)(A)(1) of this sec-
tion using an additional communication
method pursuant to procedures set forth
at a location described in paragraph (k)
(5)(iii)(C)(7) of this section. The dis-
closure statement must also provide that
the customer may change the additional
communication method selected for this
requested notice pursuant to procedures
set forth at a location described in para-
graph (k)(5)(iii)(C)(7) of this section. If
the broker will furnish the 1099-DA state-
ment using a qualified electronic delivery
method described in paragraph (k)(5)(ii)
(B)(1) of this section (direct transmit-
tal), the disclosure statement must offer
the customer the opportunity to ask for a
requested notice using an additional com-
munication method informing the cus-
tomer that the customer’s 1099-DA state-
ment has been transmitted. The disclosure
statement must provide that the customer
may change the additional communication
method selected for this requested notice
pursuant to procedures set forth at a loca-
tion described in paragraph (k)(5)(iii)(C)
(7) of this section.
(5) Consequences of non-consent. If
the broker intends to limit the services
available to a customer that does not pro-
vide consent, such as not effecting future
sales for the customer, the disclosure
statement must inform the customer of
this intention.

Bulletin No. 2026–13 755 March 23, 2026
(6) Withdrawal of consent. If the bro-
ker does not offer the customer the oppor-
tunity to withdraw a previously provided
consent, the disclosure statement must
inform the customer of this intention.
Additionally, if the broker does offer the
customer the opportunity to withdraw a
previously provided consent, the disclo-
sure statement must inform the customer
of the procedures the customer must fol-
low to withdraw a previously provided
consent and when such withdrawal will be
effective.
(7) Further information. The state-
ment must describe the location, such as
on the broker’s website, mobile device
application, or other online platform,
where the customer can find the informa-
tion included in the disclosure statement
described in this paragraph (k)(5)(iii)(C)
after providing the consent described in
paragraph (k)(5)(iii)(A) of this section.
(D) Examples. The following examples
illustrate the rules of this paragraph (k)(5)
(iii):
(1) Example 1—(i) Facts. Broker (B) is a bro-
ker that operates a digital asset trading platform and
provides hosted wallet services for customers. B’s
general terms and conditions shown to all custom-
ers using B’s website or mobile device application
include a “check box” which all customers must
check to provide their agreement. During calendar
year 1 (CY1), to obtain customer consent to receiv-
ing 1099-DA statements in an electronic format, B
updates its general terms and conditions to include a
clear and concise disclosure statement that provides
the information described in paragraphs (k)(5)(iii)
(C)(1) through (7) of this section. The updated gen-
eral terms and conditions include a separate “check
box” which all customers must check to provide their
consent to receiving 1099-DA statements in an elec-
tronic format. Customer J (J) accesses B’s mobile
device application to make a transaction and checks
a “check box” to agree to B’s general terms and con-
ditions and also checks the “check box” to consent
to receiving 1099-DA statements in an electronic
format.
(ii) Analysis. B’s updated terms and conditions
disclose to J all the information described in para-
graphs (k)(5)(iii)(C)(1) through (7) of this section.
Accordingly, B has satisfied the disclosure require-
ments set forth in paragraph (k)(5)(iii)(C) of this
section. Additionally, by checking a box that relates
solely to consenting to receiving 1099-DA state-
ments in an electronic format and that is separate
from any other consent provided by the customer,
J has positively consented to receiving J’s 1099-DA
statements in an electronic format as required under
paragraph (k)(5)(iii)(A) of this section.
(2) Example 2—(i) Facts. Broker (F) is a broker
that operates a digital asset trading platform and pro-
vides hosted wallet services for customers. During
calendar year 1 (CY1), F adds a pop-up screen that
is shown to all customers and potential customers
using F’s website or mobile device application seek-
ing consent from such customers to receiving 1099-
DA statements in an electronic format. The pop-up
screen includes a clear and concise disclosure state-
ment that provides the information described in para-
graphs (k)(5)(iii)(C)(1) through (7) of this section.
The pop-up screen includes an “I agree” button that
is separate from any other consent provided by the
customer and on which all customers and potential
customers must click to provide their consent. Cus-
tomer R accesses F’s mobile device application to
make a transaction and clicks on the “I agree” button.
(ii) Analysis. F’s pop-up screen discloses to R all
the information described in paragraphs (k)(5)(iii)
(C)(1) through (7) of this section. Accordingly, F
has satisfied the disclosure requirements set forth in
paragraph (k)(5)(iii)(C) of this section. Additionally,
by clicking on the “I agree” button on F’s pop-up
screen, which is separate from any other consent pro-
vided by the customer, R has positively consented to
receiving R’s 1099-DA statements in an electronic
format as required under paragraph (k)(5)(iii)(A) of
this section.
(3) Example 3—(i) Facts. The facts are the
same as in paragraph (k)(5)(iii)(D)(2) of this section
(the facts in Example 2), except that the disclosure
statement includes a statement that F will not effect
future sales for customers that do not provide their
consent to receive their 1099-DA statements in an
electronic format. Additionally, R does not click on
the “I agree” button.
(ii) Analysis. Because R did not click on the “I
agree” button on F’s pop-up screen, R has not con-
sented to receive the 1099-DA statements electroni-
cally. Accordingly, although F may not be obligated
to continue the business relationship with R, F must
furnish R’s 1099-DA statements reflecting any of
R’s sales previously effected by F in CY1 in a paper
format.
(4) Example 4—(i) Facts. The facts are the same
as in paragraph (k)(5)(iii)(D)(2) of this section (the
facts in Example 2), except the disclosure statement
provided to the customer includes language indicat-
ing that the 1099-DA statements will be furnished in
XYZ electronic format and a statement that F will not
effect future sales for customers that do not provide
their consent to receive their 1099-DA statements
in an electronic format. In calendar year 2 (CY2),
after F effected digital asset sales on behalf of R, F
makes the decision to change the software used to
furnish the 1099-DA statements from XYZ software
to ABC software. This change creates a material risk
that existing customers would need to download new
software to access the 1099-DA statements in the
new ABC electronic format. F adds a revised pop-up
screen to solicit a new consent to receiving 1099-
DA statements in the new ABC electronic format.
This pop-up screen will be shown to all customers
and potential customers using F’s website or mobile
device application. The revised pop-up screen
includes a clear and concise disclosure statement
that provides the updated information set forth in
paragraphs (k)(5)(iii)(C)(1) through (7) of this sec-
tion, including a disclosure of the software needed to
access the 1099-DA statements in the new ABC elec-
tronic format and a statement that F will not effect
future sales for customers that do not provide their
consent to receive their 1099-DA statements in the
ABC electronic format. The revised pop-up screen
includes an “I agree” button on which all customers
and potential customers must click to provide their
consent to receiving 1099-DA statements in an elec-
tronic format and does not address any other issues.
Customer R does not click on this “I agree” button.
(ii) Analysis. Because R did not click on the “I
agree” button, R has not consented to receive the
1099-DA statements electronically in the ABC for-
mat. Accordingly, although F may not be obligated
to continue the business relationship with R, F must
furnish R’s 1099-DA statements reflecting any of R’s
sales previously effected by F in CY2 in the XYZ
format.
(5) Example 5—(i) Facts. Broker (K) is a broker
that operates physical electronic terminals (kiosks)
that customers use to purchase and sell digital assets.
During calendar year 1 (CY1), K adds a pop-up
screen that is shown to all customers and potential
customers using K’s kiosk seeking consent from
such customers to receiving 1099-DA statements in
an electronic format. The pop-up screen includes a
clear and concise disclosure statement that provides
the information described in paragraphs (k)(5)(iii)
(C)(1) through (7) of this section. The pop-up screen
includes an “I agree” button on which all custom-
ers and potential customers must click to provide
their consent. Customer J visits K’s kiosk to make a
transaction and clicks on the “I agree” button, which
is separate from any other consent provided by the
customer and does not address any issues other than
consenting to electronic receipt of 1099-DA state-
ments. K does not send the disclosure statement to
J by email, mail, or private delivery service. Addi-
tionally, K does not provide J with the opportunity
to request that the disclosure statement be provided
using an additional communication method. J does
not engage in any other transactions using K’s ser-
vices.
(ii) Analysis. Under paragraph (k)(5)(iii)(A) of
this section, K is required to provide a clear and con-
spicuous disclosure statement to the customer prior
to, or at the time of, a customer’s consent. Under
paragraph (k)(5)(iii)(C) of this section, that state-
ment may be provided in any manner that is part of
the consent solicitation. K’s pop-up that provides the
information described in paragraphs (k)(5)(iii)(C)(1)
through (7) of this section satisfies this requirement.
In addition, however, because K transacts with J only
through K’s kiosk, K is also required to send this
disclosure statement to J by email, mail, or private
delivery service and is required to provide J with the
opportunity to request that the disclosure statement
be provided using an additional communication
method. Accordingly, because K failed to provide
this disclosure statement to J by email, mail, or pri-
vate delivery service, J has not positively consented
to receiving J’s 1099-DA statements in an electronic
format as required under paragraph (k)(5)(iii)(A) of
this section.
(iv) Continuing disclosures—(A) In general.
The broker must provide a location where the cus-
tomer can generally find updated versions of the
information described in paragraphs (k)(5)(iii)(C)
(1) through (7) of this section through the access
period described in paragraph (k)(5)(vi) of this sec-
tion with respect to such customer. In addition, this

March 23, 2026 756 Bulletin No. 2026–13
location must also include the information described
in paragraphs (k)(5)(iv)(B) though (E) of this sec-
tion. A broker may generally provide the information
described and cross-referenced in this paragraph (k)
(5)(iv)(A) on the broker’s website, mobile device
application, or other online platform. Notwithstand-
ing the previous sentence, a broker that transacts
with a customer exclusively through a physical
electronic terminal or kiosk and a broker that effects
sales of digital assets for a customer as a processor
of digital asset payments as defined in paragraph (a)
(22) of this section must also send this disclosure
statement by email, mail, or private delivery service
within five business days of the customer’s explicit
action to provide consent as described in paragraph
(k)(5)(iii)(A) of this section. Additionally, if a bro-
ker described in the previous sentence updates the
information described in paragraphs (k)(5)(iii)(C)(1)
through (7) of this section during the access period
described in paragraph (k)(5)(vi) of this section with
respect to a customer, the broker must also send
updated versions of the information to the customer
by email, mail, or private delivery service within five
business days of posting the updated version to the
broker’s website, mobile device application, or other
online platform. Finally, to the extent the customer
requested at the time of consent or anytime thereafter
that the disclosure statement be provided using an
additional communication method described in para-
graph (k)(5)(ii)(C) of this section, the broker must
also send the continuing disclosure statement and
any updated versions of the information included on
that statement to the customer using the additional
communication method requested by the customer.
(B) Updating information. The broker must pro-
vide a description of the procedures the customer
may use to update the information needed by the
broker to deliver to the customer, as applicable, the
notice(s) described in paragraph (k)(5)(ii)(A)(1) of
this section that the 1099-DA statement has been
posted to an electronically accessible specified loca-
tion, the email to which the 1099-DA statement is
attached, or the requested notice described in para-
graph (k)(5)(ii)(B)(1) of this section informing the
customer that the customer’s 1099-DA statement has
been transmitted.
(C) Broker information. The broker must provide
the broker’s contact information in the event the cus-
tomer has questions about the consent or about the
customer’s 1099-DA statement.
(D) Additional communication methods for
requested notices. The broker must provide a descrip-
tion of the procedures for asking for the requested
notices as required to be offered by paragraphs (k)
(5)(ii)(A)(1) and (k)(5)(ii)(B)(1) of this section using
the customer’s choice of additional communication
method.
(E) Access procedures for statements posted to
an electronically accessible specified location. If the
broker will furnish the 1099-DA statements using
a qualified electronic delivery method described in
paragraph (k)(5)(ii)(A) of this section (posting to
an electronically accessible specified location), the
broker must provide information about the period
of time that the broker will retain the 1099-DA
statement and any corrected 1099-DA statement at
that electronically accessible specified location. In
addition, the broker must provide the date when the
1099-DA statements will no longer be available at
the electronically accessible specified location and a
description of the procedures the customer may use
to obtain 1099-DA statements and corrected 1099-
DA statements that are no longer available at the
electronically accessible specified location.
(v) Format. The electronic version of the 1099-
DA statement must contain all required information
and comply with applicable revenue procedures
relating to substitute statements to the customer.
(vi) Access period for statements posted to an
electronically accessible specified location. The
broker must maintain access to 1099-DA statements
posted to an electronically accessible specified
location through October 15 of the year following
the calendar year to which the 1099-DA statements
relate (or the first business day after such October
15, if October 15 falls on a Saturday, Sunday, or
legal holiday). The broker must maintain access for
the customer to corrected 1099-DA statements that
are posted to an electronically accessible specified
location through October 15 of the year following
the calendar year to which the statements relate (or
the first business day after such October 15, if Octo-
ber 15 falls on a Saturday, Sunday, or legal holiday)
or the date 90 days after the corrected statements are
posted, whichever is later. The broker must retain
1099-DA statements for seven years from the date
the 1099-DA statements are required to be furnished
under paragraph (k)(2) of this section or (if later)
the date that the 1099-DA statements are actually
furnished and must make them available to the cus-
tomer upon request.
(vii) Example of rules for electronic furnishing
of consolidated reporting statements—(A) Facts.
Customer C has an account with B, a broker, con-
sisting of stock in a single corporation and digital
assets. In calendar year 1, C sells the stock and digi-
tal assets held within C’s account. Under this section,
B must furnish a statement reflecting the information
reported to the IRS on Form 1099-B, Proceeds From
Broker and Barter Exchange Transactions, and
Form 1099-DA, Digital Asset Proceeds From Bro-
ker Transactions, to C for the sale of stock (1099-B
statement) and digital assets (1099-DA statement). B
obtains consent from C for C to receive the 1099-
DA statement in an electronic format under the rules
set forth in paragraph (k)(5)(iii) of this section and
meets the requirements set forth in paragraphs (k)
(5)(iii) through (vi) of this section to be treated as
furnishing the required 1099-DA statements in a
timely manner. B does not obtain consent from C to
receive the 1099-B statement in an electronic format
under the applicable revenue procedures relating to
electronic delivery of payee statements. With respect
to calendar year 1, B electronically furnishes the
1099-DA statement and the 1099-B statement to C
in a consolidated reporting statement using a qual-
ified delivery method as defined in paragraph (k)(5)
(ii) of this section. B does not separately furnish the
1099-B statement to C on paper.
(B) Analysis. Under paragraph (k)(3)(iii) of this
section, because B did not obtain consent from C to
receive the 1099-B statement in an electronic format
under the applicable revenue procedures relating to
electronic delivery of payee statements, the elec-
tronic furnishing to C of the 1099-B statement in a
consolidated reporting statement with the 1099-DA
statement does not satisfy B’s obligation under this
paragraph (k) to furnish a 1099-B statement to C
with respect to C’s sales of stock. Accordingly, the
failure to furnish penalty under section 6722 and
§301.6722-1 of this chapter would apply to B with
respect to B’s failure to furnish a 1099-B statement
to C with respect to C’s sales of stock.
(6) Applicability date. The rules of
paragraph (k)(5) of this section regard-
ing electronic furnishing of 1099-DA
statements apply to 1099-DA statements
required to be furnished on or after Jan-
uary 1 of the calendar year immediately
following [date of publication of final reg-
ulations in the Federal Register].
* * * * *
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register March
5, 2026, 8:45 a.m., and published in the issue of the
Federal Register for March 6, 2026, 91 FR 10983)
Notice of Proposed
Rulemaking
Removal of Final
Regulations Identifying
Certain Partnership
Related-Party Basis
Adjustment Transactions as
Transactions of Interest
REG-108921-25
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing.
SUMMARY: This document proposes to
remove regulations that identify certain
partnership related-party basis adjustment
transactions and substantially similar
transactions as transactions of interest, a
type of reportable transaction. The regu-
lations would affect participants in these
transactions as well as material advisors.
DATES: Electronic or written comments
and requests for a public hearing must be
received by April 6, 2026.

Bulletin No. 2026–13 757 March 23, 2026
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at https://www.regulations.
gov (indicate IRS and REG-108921-25)
by following the online instructions for
submitting comments. Requests for a
public hearing must be submitted as pre-
scribed in the “Comments and Requests
for a Public Hearing” section. Once
submitted to the Federal eRulemaking
Portal, comments cannot be edited or
withdrawn. The Department of the Trea-
sury (Treasury Department) and the IRS
will publish for public availability any
comments submitted to the IRS’s pub-
lic docket. Send paper submissions to:
CC:PA:01:PR (REG-108921-25), Room
5503, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Wash-
ington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Elizabeth V. Zanet of the
Office of the Associate Chief Counsel
(Passthroughs, Trusts, and Estates), (202)
317-5279 (not a toll-free number); con-
cerning submissions of comments and
requests for a public hearing, the Publi-
cations and Regulations Section at (202)
317-6901 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Authority
This document proposes to remove §
1.6011-18 (Basis Shifting TOI Regula-
tions) from 26 CFR part 1 (Income Tax
Regulations). The Basis Shifting TOI
Regulations were issued under section
6011 of the Internal Revenue Code (Code)
pursuant to the authority granted to the
Secretary of the Treasury or the Secre-
tary’s delegate (Secretary) under sections
6001, 6011(a), 6111, 6112(a), 6707A(c)
(1), and 7805(a) of the Code.
Background
On June 18, 2024, the Treasury Depart-
ment and the IRS published a notice of
proposed rulemaking (REG-124593-23)
in the Federal Register (89 FR 51476)
identifying certain partnership relat-
ed-party basis adjustment transactions and
substantially similar transactions as trans-
actions of interest, a type of reportable
transaction (Basis Shifting TOI Proposed
Regulations). On January 14, 2025, the
Treasury Department and the IRS final-
ized the Basis Shifting TOI Proposed Reg-
ulations with modifications in response to
comments with the publication of final
regulations (Basis Shifting TOI Regula-
tions) (TD 10028) in the Federal Register
(90 FR 2958).
Since their publication, taxpayers and
their material advisors have criticized
the Basis Shifting TOI Regulations at
§ 1.6011-18 as imposing complex and
burdensome compliance obligations on
businesses. The Treasury Department and
the IRS considered these public comments
and determined that the Basis Shifting
TOI Regulations may be appropriate for
removal.
On April 17, 2025, the Treasury Depart-
ment and the IRS published Notice 2025-
23 (2025-19 IRB 1428). Notice 2025-23
announced that the Treasury Department
and the IRS intended to publish a notice
of proposed rulemaking proposing the
removal of the Basis Shifting TOI Regu-
lations from the Income tax Regulations.
Notice 2025-23 further stated that taxpay-
ers and their material advisors can rely on
the notice until the Treasury Department
and the IRS removed the Basis Shifting
TOI Regulations from the Income Tax
Regulations. Notice 2025-23 additionally
stated that the IRS will (i) waive penalties
under section 6707A(a) for participants in
transactions identified in the Basis Shift-
ing TOI Regulations, and (ii) waive pen-
alties under sections 6707(a) and 6708 of
the Code for material advisors to transac-
tions identified in the Basis Shifting TOI
Regulations.
Explanation of Provisions
Consistent with Notice 2025-23, this
notice of proposed rulemaking (Removal
NPRM) proposes to remove the Basis
Shifting TOI Regulations from the Income
Tax Regulations.
Proposed Effective Date and
Applicability Date
The proposed removal of the Basis
Shifting TOI Regulations would be effec-
tive on the date that the Treasury Depart-
ment and the IRS publish final regulations
(Forthcoming Final Regulations). The
Treasury Department and the IRS intend
that the Treasury decision adopting the
Forthcoming Final Regulations will pro-
vide that participants and material advi-
sors may treat the removal of the Basis
Shifting TOI Regulations as occurring on
January 14, 2025, which is the applicabil-
ity date of the Basis Shifting TOI Regu-
lations. Thus, participants and material
advisors will be able to treat the Basis
Shifting TOI Regulations as never hav-
ing taken effect. See section 7805(b)(7).
Consistent with Notice 2025-23, partici-
pants and material advisors may continue
relying on that notice until the Treasury
Department and IRS finalize the Removal
NPRM with the publication of the Forth-
coming Final Regulations.
Special Analyses
I. Executive Order 12866, 13563, and
14192
Executive Orders 12866 and 13563
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs, harmoniz-
ing rules, and promoting flexibility. This
rule is expected to be an Executive Order
14192 deregulatory action.
These proposed regulations have
been designated by the Office of Man-
agement and Budget’s (OMB’s) Office
of Information and Regulatory Affairs
(OIRA) as subject to review under Exec-
utive Order 12866 pursuant to the Mem-
orandum of Agreement of July 4, 2025
(MOA) between the Department of the
Treasury (Treasury Department) and the
OMB regarding review of tax regulations.
OIRA has determined that this notice of
proposed rulemaking (Removal NPRM)
is significant and subject to review under
Executive Order 12866 and section 1(c)
of the MOA. Accordingly, the Removal
NPRM has been reviewed by OMB.

March 23, 2026 758 Bulletin No. 2026–13
A. Need for Regulation
A transaction of interest (TOI) is a
type of reportable transaction. On Janu-
ary 14, 2025, the Treasury Department
and the IRS published § 1.6011-18 (Basis
Shifting TOI Regulations), which require
taxpayers and material advisors to report
information identifying certain partner-
ship related-party basis adjustment trans-
actions. Taxpayers and their material
advisors have criticized the Basis Shifting
TOI Regulations as imposing complex
and burdensome compliance obligations
on businesses. The Treasury Department
and the IRS received many public com-
ments requesting that the Basis Shifting
TOI Regulations be removed. The Trea-
sury Department and the IRS considered
the public comments and determined that
the Basis Shifting TOI Regulations may
be appropriate for removal.
On April 17, 2025, the Treasury Depart-
ment and the IRS published Notice 2025-
23 (2025-19 IRB 1428), which announced
that the Treasury Department and the IRS
intended to publish a notice of proposed
rulemaking removing the Basis Shifting
TOI Regulations.
Consistent with that intention, this
notice of proposed rulemaking (Removal
NPRM) proposes to remove the Basis
Shifting TOI Regulations from 26 CFR
part 1 (Income Tax Regulations). The pro-
posed removal of the Basis Shifting TOI
Regulations would be effective on the date
that the Treasury Department and the IRS
publish final regulations (Forthcoming
Final Regulations). The Treasury Depart-
ment and the IRS intend that the Treasury
decision adopting the Forthcoming Final
Regulations will provide that partici-
pants and material advisors may treat the
removal of the Basis Shifting TOI Regu-
lations as occurring on January 14, 2025,
which is the applicability date of the Basis
Shifting TOI Regulations. Thus, partici-
pants and material advisors will be able to
treat the Basis Shifting TOI Regulations
as never having taken effect. See section
7805(b)(7) of the Internal Revenue Code
(Code).
B. The Statute and the Removal NPRM
Under subchapter K of chapter 1 of
the Code, a distribution by a partnership
of the partnership’s property (partnership
property) or a transfer of an interest in a
partnership (partnership interest) may
result in an adjustment to the basis of the
distributed property, partnership property,
or both.
A distribution of partnership property
may result in an adjustment to the basis
of the distributed property under sections
732(b) or (d) of the Code. In the case of
a distribution of partnership property to a
partner by a partnership with an election
under section 754 of the Code (section 754
election), or with respect to which there is
a substantial basis reduction as described
in section 734(d) of the Code, the distri-
bution may also result in an adjustment to
the basis of the partnership’s remaining
property under section 734(b).
If a partnership interest is transferred
by sale or exchange or on the death of a
partner, and the partnership either has
a section 754 election in effect or has a
substantial built-in loss with respect to
the transfer of the partnership interest as
described in section 743(d) of the Code,
the transfer may result in an adjustment
to the basis of partnership property under
section 743(b) with respect to the trans-
feree partner.
As discussed above, the Basis Shifting
TOI Regulations identify certain partner-
ship related-party transactions and sub-
stantially similar transactions that result in
basis adjustments under sections 732(b),
732(d), 734(b), and 743(b) as transactions
of interest, a type of reportable transaction
with disclosure requirements.
The purpose of the Basis Shifting TOI
Regulations is to provide information to
the IRS that could help identify abusive
basis shifting transactions. However, tax-
payers and their material advisors have
criticized the Basis Shifting TOI Regula-
tions as imposing complex, burdensome,
and retroactive disclosure obligations on
many ordinary-course and tax-compliant
business activities, creating costly com-
pliance obligations and uncertainty for
businesses. The Treasury Department and
the IRS agree that the compliance burden
of the Basis Shifting TOI Regulations, as
estimated below, is substantial and likely
exceeds the benefits of the Basis Shifting
TOI Regulations.
Once the Removal NPRM is finalized,
partnership related-party transactions and
substantially similar transactions that
result in basis adjustments would no lon-
ger be treated as transactions of interest.
Thus, participants and material advisors
to these transactions would no longer have
the associated disclosure requirements.
C. Baseline
The Treasury Department and the IRS
have assessed the benefits and costs of
these proposed regulations once final-
ized (as the Forthcoming Final Regula-
tions) relative to a no-action baseline that
reflects the anticipated Federal income
tax-related behavior of taxpayers under
the Basis Shifting TOI Regulations.
D. Economic Effects
1. Participants - Forms 8886
Participants in transactions of inter-
est must report their participation in the
transaction on a Form 8886, Reportable
Transaction Disclosure Statement. The
Treasury Department and the IRS esti-
mate that the aggregate costs of filing
Forms 8886 under the Basis Shifting TOI
Regulations each year equal the product
of (1) the number of affected basis adjust-
ments, (2) the average number of partici-
pants per basis adjustment, and (3) the
average cost of filing a Form 8886 per
participant.
a. Total Number of Basis Adjustments
Affected
Based on analysis of partnership tax
return data, the Treasury Department and
the IRS have estimated that 10,000 basis
adjustments would be reported in the
absence of the Forthcoming Final Regula-
tions. Tax return data indicate as many as
12,000 basis adjustments will be over the
numeric thresholds in the Basis Shifting
TOI Regulations each year under sections
732(b), 732(d), 734(b), and 743(b). The
Treasury Department and the IRS expect
10,000 of the 12,000 basis adjustments
to generate reporting by participants. The
Treasury Department and the IRS have
determined that most participants would
choose to report any basis adjustment
over the numeric thresholds in the Basis
Shifting TOI Regulations rather than

Bulletin No. 2026–13 759 March 23, 2026
spending additional time and resources on
determining whether the underlying trans-
action satisfied the other requirements of
the regulations. For instance, if there was
a question as to whether the underlying
transaction satisfied the related party rules
under sections 267 and 707 of the Code,
the Treasury Department and the IRS have
determined that a participant would likely
choose to disclose the basis adjustment
rather than spending additional time and
resources on the nuanced related party
analysis.
b. Average Number of Participants Per
Basis Adjustment
Under the Basis Shifting TOI Regula-
tions, the type of basis adjustment deter-
mines the number of participants. For
example, a basis adjustment under section
732(b) would have two participants, the
distributee partner and the distributing
partnership. In contrast, a basis adjust-
ment under section 743(b) would have
three participants, the transferor partner,
the transferee partner, and the partnership.
The Treasury Department and the IRS
have therefore estimated that each basis
adjustment would have 2.5 participants on
average.
c. Average Cost of Filing a Form 8886
The IRS’s Research, Applied Analyt-
ics, and Statistics division (RAAS) esti-
mates that the burden of filing Form 8886
is approximately 10 hours, 16 minutes for
recordkeeping, 4 hours, 50 minutes for
learning about the law or the form, and
6 hours, 25 minutes for preparing, copy-
ing, assembling, and sending the form to
the IRS, for a total of 21 hours and 31
minutes. In the Special Analyses of the
Basis Shifting TOI Regulations, RAAS
estimated that the appropriate wage rate
was $102.00 (2022 dollars, equivalent to
$109.33 in 2024 dollars) per hour. How-
ever, one commenter indicated that a better
estimate is approximately $177.29 (2022
dollars, equivalent to $190.03 in 2024
dollars) per hour, as many affected indi-
viduals may seek specialists with higher
hourly fees. The Treasury Department
and the IRS have accepted the comment-
er’s suggested wage. Therefore, the esti-
mated burden of filing Form 8886 equals
$4,088.81 (2024 dollars) (that is, $190.03
per hour x 21 hours and 31 minutes).
d. Summary of Yearly Economic Effects
Related to Filing Form 8886
Based on the above, the Treasury
Department and the IRS estimate that
the aggregate costs of filing Form 8886
under the Basis Shifting TOI Regulations
are approximately $102 million per year
(2024 dollars) (that is, the product of (i)
10,000 basis adjustments, (ii) 2.5 par-
ticipants per basis adjustment, and (iii)
$4,088.81 average filing burden).
2. Material Advisors - Forms 8918
Material advisors to transactions of
interests identified under the Basis Shift-
ing TOI Regulations must file Form 8918,
Material Advisor Disclosure Statement.
The Treasury Department and the IRS
have assumed that the aggregate costs of
filing Forms 8918 under the Basis Shift-
ing TOI Regulations each year equal the
product of (1) the number of affected
basis adjustments, (2) the average number
of material advisors per basis adjustment,
and (3) the average cost of filing a Form
8918 per advisor.
a. Total Number of Basis Adjustments
Affected
For the same reasons discussed in Sec-
tion IV.A.1., the Treasury Department and
the IRS have estimated that 10,000 basis
adjustments would be reported under the
Basis Shifting TOI Regulations.
b. Average Number of Participants Per
Basis Adjustment
The Treasury Department and the IRS
estimate that each transaction that results
in a reported basis adjustment will have
at least one professional services firm
that advises on the tax implications of
the transaction (for example, a law firm
or an accounting firm) and at least one
accounting firm that prepares the relevant
tax returns. The Treasury Department
and the IRS therefore estimate that each
transaction that results in a reported basis
adjustment will have 2.2 material advisors
on average.
c. Average Cost of Filing a Form 8918
RAAS estimates that the burden of fil-
ing Form 8918 is approximately 8 hours,
7 minutes for recordkeeping, 3 hours, 4
minutes for learning about the law or the
form, and 3 hours, 20 minutes for prepar-
ing, copying, assembling, and sending the
form to the IRS, for a total of 14 hours and
31 minutes. If the appropriate wage rate
is the same as Form 8886 ($190.03 (2024
dollars) per hour), the burden of filing
Form 8918 is $2,758.60 (2024 dollars).
d. Summary of Yearly Economic Effects
Related to Filing Form 8918
Based on the above, the Treasury
Department and the IRS estimate that the
aggregate costs of filing Form 8918 under
the Basis Shifting TOI Regulations equals
$61 million per year (2024 dollars) (that
is, the product of (i) 10,000 basis adjust-
ments, (ii) 2.2 material advisors per basis
adjustment, and (iii) $2,758.60 average
filing burden).
3. Economic Effects, In Summary
In total, the annual burden estimate
related to the Basis Shifting TOI Regula-
tions is $163 million (that is, $102 million
per year with respect to Form 8886, plus
$61 million per year with respect to Form
8918). The Treasury Department and the
IRS do not anticipate any other material
economic effects of the Forthcoming Final
Regulations beyond the filing burden
reduction. Therefore, the Treasury Depart-
ment and the IRS estimate that the aggre-
gate economic effects of the Forthcoming
Final Regulations would be a reduction in
filing burdens by $163 million. The Trea-
sury Department and the IRS request com-
ments on the magnitude of this estimate.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) generally requires
that a Federal agency obtain OMB
approval before collecting information
from the public, whether such collection
of information is mandatory, voluntary,
or required to obtain or retain a benefit.
An agency may not conduct or sponsor,
and a person is not required to respond

March 23, 2026 760 Bulletin No. 2026–13
to, a collection of information unless the
collection of information displays a valid
control number. These proposed regula-
tions (Removal NPRM), which propose
removing § 1.6011-18 (Basis Shifting TOI
Regulations) from 26 CFR part 1 (Income
Tax Regulations), do not contain a collec-
tion of information and, in fact, remove
what would otherwise have been a col-
lection of information requirement in the
Basis Shifting TOI Regulations.
III. Regulatory Flexibility Act
The Secretary of the Treasury (Secre-
tary) hereby certifies that these proposed
regulations (Removal NPRM) will not
have a significant economic impact on a
substantial number of small entities under
the Regulatory Flexibility Act (RFA) (5
U.S.C. chapter 6). This certification is
based on IRS data that allowed an estimate
of the percentage of partnerships required
to file disclosure statements under the pro-
posed regulations that the Department of
the Treasury (Treasury Department) and
the IRS published on June 18, 2024 (Basis
Shifting TOI Proposed Regulations) and
the final regulations published on January
14, 2025 (Basis Shifting TOI Regulations).
The data indicated that the percentage of
partnerships that would have a disclosure
obligation under the Basis Shifting TOI
Proposed Regulations or Basis Shifting
TOI Regulations and considered to be
small business for purposes of the RFA
would be low. Accordingly, the removal
of the disclosure requirements under the
Removal NPRM is not anticipated to have
a significant economic impact on a sub-
stantial number of small entities.
The RFA discussion in the Basis Shift-
ing TOI Proposed Regulations referenced
data provided by IRS’s Research, Applied
Analytics, and Statistics (RAAS) division,
which estimated the percentage of part-
nerships with gross receipts or sales of
$25 million or less that might have been
subject to the disclosure obligations as a
result of a basis adjustment under section
743(b) of more than $5 million during the
taxable year. That data suggested that of
all partnerships with related parties and a
basis adjustment under section 743(b) of
more than $5 million during the taxable
year, approximately two-thirds of the part-
nerships would have gross receipts or sales
of $25 million or less and approximately
one-third would have gross receipts or
sales of $25 million or more. The Trea-
sury Department and the IRS determined
that the data did not indicate that the
Basis Shifting TOI Proposed Regulations
would have a significant economic impact
on a substantial number of small entities
because not all partnerships with gross
receipts or sales of $25 million or less are
considered small businesses (see 13 CFR
121.201), and the data did not provide
information on whether the partnerships
with gross receipts or sales of $25 million
or less were part of larger enterprises.
The RFA discussion in the Basis Shift-
ing TOI Regulations referenced data from
the IRS that indicated that, in the case of
partnerships with gross assets of less than
$25 million that reported basis adjust-
ments under section 734(b) or section
743(b) for the taxable year, the average
basis adjustment was less than the appli-
cable threshold amount of $10 million or
more. Thus, the Treasury Department and
the IRS anticipated that many partnerships
with gross assets of less than $25 million
would not be subject to the disclosure
requirements. Further, the data indicated
that partnerships with gross assets of
more than $25 million that reported basis
adjustments under section 734(b) or sec-
tion 743(b) for the taxable year that met
the applicable threshold amount of $10
million or more represented less than one
percent of all partnerships that file tax
returns for the taxable year.
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel for the Office of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal man-
date that may result in expenditures in
any one year by a State, local, or Tribal
government, in the aggregate, or by the
private sector, of $100 million (updated
annually for inflation). These proposed
rules do not include any Federal mandate
that may result in expenditures by State,
local, or Tribal governments, or by the pri-
vate sector in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local gov-
ernments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of Executive
Order 13132. These proposed regulations
do not have federalism implications and
do not impose substantial direct compli-
ance costs on State and local governments
or preempt State law within the meaning
of Executive Order 13132.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to comments that are submit-
ted timely to the IRS as prescribed in the
preamble under the ADDRESSES section.
All comments and a plain language sum-
mary of the proposed rule will be made
available at https://www.regulations.gov
or upon request. A public hearing will be
scheduled if requested in writing by any
person that timely submits electronic or
written comments. If a public hearing is
scheduled, notice of the date, time, and
place for the public hearing will be pub-
lished in the Federal Register.
Statement of Availability of IRS
Documents
Notices cited in this document are pub-
lished in the Internal Revenue Bulletin
and are available from the Superintendent
of Documents, U.S. Government Publish-
ing Office, Washington, DC 20402, or by
visiting the IRS website at https://www.
irs.gov.
Drafting Information
The principal authors of this notice
of proposed rulemaking are personnel of
the Office of the Associate Chief Counsel

Bulletin No. 2026–13 761 March 23, 2026
(Passthroughs, Trusts, and Estates). How-
ever, other personnel from the Treasury
Department and the IRS participated in its
development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 1 as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by removing the
entry for §1.6011-18 to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
§1.6011-18 [Removed]
Par. 2. Section 1.6011-18 is removed.
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register March
5, 2026, 8:45 a.m., and published in the issue of the
Federal Register for March 6, 2026, 91 FR 11003)
Notice of Proposed
Rulemaking
Trump Accounts
Contribution Pilot Program
REG-117002-25
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing.
SUMMARY: This document contains
proposed regulations relating to the Trump
accounts contribution pilot program under
which the Trump accounts of eligible chil-
dren can receive $1,000 pilot program
contributions. Eligible children must be
U.S. citizens with valid Social Security
numbers born in 2025 through 2028. The
proposed regulations would provide guid-
ance on making an election for the Trump
account of an eligible child to receive a
$1,000 pilot program contribution. The
proposed regulations would affect eligible
children and individuals who would make
elections with respect to those children.
DATES: Written or electronic comments
and requests for a public hearing must be
received by April 8, 2026.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at https://www.regulations.gov
(indicate IRS and REG-117002-25) by
following the online instructions for sub-
mitting comments. Requests for a public
hearing must be submitted as prescribed
in the “Comments and Requests for a
Public Hearing” section. Once submitted
to the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish for
public availability any comments submit-
ted to the IRS’s public docket. Send paper
submissions to: CC:PA:01:PR (REG-
117002-25), Room 5503, Internal Reve-
nue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Molly E. Lovern at (202)
317-5416; concerning submissions of
comments or a public hearing, the Publi-
cations and Regulations Section at (202)
317-6901 (not toll-free numbers) or by
email at publichearings@irs.gov (pre-
ferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed
amendments to the Procedure and Admin-
istration Regulations (26 CFR part 301)
to implement section 6434 of the Inter-
nal Revenue Code (Code) relating to the
Trump accounts contribution pilot pro-
gram. Section 6434(d) authorizes the Sec-
retary of the Treasury or the Secretary’s
delegate (Secretary) to prescribe rules for
the time and manner for elections under
section 6434. The proposed regulations
are also issued under the authority of sec-
tion 7805(a) of the Code, which authorizes
the Secretary to “prescribe all needful
rules and regulations for the enforcement
of [the Code], including all rules and reg-
ulations as may be necessary by reason of
any alteration of law to internal revenue.”
Background
I. Overview
Section 70204 of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
known as the One, Big, Beautiful Bill
Act of 2025, added new sections 530A
and 6434 to the Code relating to Trump
accounts. Section 530A of the Code
provides for the establishment of a
Trump account for an eligible individ-
ual as defined in section 530A(b)(2) and
cross-references section 6434. Section
6434 provides for a one-time $1,000 con-
tribution from the Secretary to the Trump
account of an eligible child with respect
to whom an election under section 6434 is
made ($1,000 pilot program contribution).
These proposed regulations would
implement section 6434. The Treasury
Department and the IRS are proposing
regulations under section 530A in another
notice of proposed rulemaking (REG-
117270-25) published elsewhere in this
issue of the Federal Register.
II. Trump accounts generally
A Trump account is a type of tradi-
tional individual retirement account (IRA)
established for the exclusive benefit of
an eligible individual or the individual’s
beneficiaries under section 530A. Section
530A directs the Secretary to create or
organize the first Trump account (initial
Trump account) for each eligible individ-
ual. An eligible individual is any individ-
ual (i) who has not attained age 18 before
the close of the calendar year in which an
election to open an initial Trump account
(initial Trump account election) is made,
(ii) for whom a social security number
has been issued before the date of the ini-

March 23, 2026 762 Bulletin No. 2026–13
tial Trump account election, and (iii) for
whom the initial Trump account election
is made.
A Trump account is subject to certain
special rules on contributions, invest-
ments, distributions, and reporting that
are inapplicable to other individual retire-
ment arrangements under section 408
of the Code. After the period beginning
when a Trump account is established and
ending on December 31 of the calendar
year in which a Trump account bene-
ficiary attains age 17 (growth period),
most of the special rules no longer apply
and the rules under section 408 governing
traditional IRAs generally apply. During
the growth period, a subsequent Trump
account (rollover Trump account) may
be established for an individual and must
be funded by a trustee-to-trustee trans-
fer of the entire account balance from
the individual’s existing Trump account.
Because a rollover Trump account must
be funded by a qualified rollover contri-
bution (which is a transfer of the entire
account balance from the individual’s
prior Trump account), an individual may
only have one Trump account containing
funds at a time.
Unlike contributions to other IRAs,
which require an IRA owner to have inclu-
dible compensation, under the special rules
applicable during the growth period of a
Trump account, a $1,000 pilot program
contribution may be made to the Trump
account of a child eligible to receive the
$1,000 pilot program contribution even if
the child does not have includible income.
Because the criteria under section 530A to
be an eligible individual for the opening
of an initial Trump account differ from
the criteria under section 6434 to be an
eligible child whose Trump account may
receive a $1,000 pilot program contri-
bution, only a portion of the individuals
eligible for a Trump account will also be
eligible to receive a $1,000 pilot program
contribution. However, a child who is eli-
gible for a $1,000 pilot program contribu-
tion must have a Trump account in order
for the Secretary to pay the $1,000 pilot
program contribution. A child who does
not have a Trump account for any reason
will not receive a $1,000 pilot program
contribution, even if such child is other-
wise eligible for a $1,000 pilot program
contribution.
III. Trump accounts contribution pilot
program
In general, section 6434 provides that
when an individual makes an election
with respect to an eligible child of the
individual, the election results in a one-
time, $1,000 pilot program contribution
into the eligible child’s Trump account.
The term “Trump account” has the same
definition as in section 530A.
Section 6434(a) provides that an indi-
vidual makes an election for the Trump
accounts contribution pilot program with
respect to an eligible child of that individ-
ual. With such election, the eligible child is
treated as making a $1,000 payment against
the income tax liability imposed by subti-
tle A of the Code for the taxable year for
which the election is made. Section 6434
does not require that the election be made
for a particular calendar year. Although the
eligible child is receiving the benefit of the
pilot program election, the eligible child
does not make the pilot program election.
Section 6434(b) provides that the same
amount of the $1,000 payment is paid by
the Secretary to the Trump account of the
eligible child for which the election in sec-
tion 6434(a) was made ($1,000 pilot pro-
gram contribution). The $1,000 pilot pro-
gram contribution into the eligible child’s
Trump account therefore cannot occur
without an election having been made for
that child. Section 6434(b) authorizes the
Secretary to pay the $1,000 pilot program
contribution only “to the Trump account
with respect to which such eligible child
is the account beneficiary.” Pursuant to
section 6434(f)(1), a $1,000 pilot program
contribution made under section 6434 is
not subject to reduction or offset by the
mandatory offsets of subsections (c) (past-
due support), (d) (debts owed to Federal
agencies), (e) (past-due, legally enforce-
able state income tax obligations), and
(f) (unemployment compensation debts)
of section 6402 of the Code or any other
similar offset. Similarly, section 6434(f)
(2) prohibits reduction or offset of such
$1,000 pilot program contributions by
other assessed Federal taxes subject to
collection including levy. Section 6434(g)
prevents overpayment interest under sec-
tion 6611(a) of the Code from accruing
prior to January 1, 2028, with respect to
any payment under section 6434.
Section 6434(c) defines the term “eli-
gible child” for purposes of section 6434.
It provides that an eligible child is a
qualifying child under section 152(c) of
the Code; is born during the 2025, 2026,
2027, or 2028 calendar year; has had no
prior pilot program election made by any
individual; and is a United States citizen.
Section 6434(e)(1) requires the pilot
program election to include the social
security number of the eligible child
for whom the election is made. Section
6434(e)(2) cross-references section 24(h)
(7) of the Code to define the term “social
security number” for section 6434. The
social security number must be issued
before the election is made.
Section 6434(d) authorizes the Secre-
tary to provide the rules for the time and
manner of making the pilot program elec-
tion.
Explanation of Provisions
Proposed §301.6434-1 would establish
the framework for the Trump accounts
contribution pilot program. First, it would
provide the general rule that a pilot pro-
gram-electing individual must make a
pilot program election with respect to an
eligible child of such individual in order
for the Secretary to make a $1,000 pilot
program contribution into the Trump
account for which such eligible child is
the beneficiary. Second, it would define
several terms solely for purposes of sec-
tion 6434, including the terms “eligible
child,” “pilot program election,” “pilot
program-electing individual,” “special
taxable year,” and “social security num-
ber.” Third, it would identify how the
deemed payment upon the processing of a
pilot program election generates an over-
payment of tax for the eligible child in the
amount of $1,000, which is then refunded
to the eligible child as a $1,000 pilot pro-
gram contribution into such child’s Trump
account. Fourth, it would provide the rules
for the timing of the pilot program elec-
tion. Lastly, it would provide the rules for
the manner of making the pilot program
election.
I. General rule
Proposed §301.6434-1(a) would pro-
vide that a pilot program-electing indi-

Bulletin No. 2026–13 763 March 23, 2026
vidual must make a pilot program elec-
tion with respect to an eligible child of
the pilot program-electing individual in
order for the Secretary to make a $1,000
pilot program contribution into the Trump
account of the eligible child. This general
rule would conform with the statutory
scheme of section 6434(a), which pro-
vides that after a pilot program election,
an eligible child is treated as making a
$1,000 payment against an income tax
liability under subtitle A of the Code, and
section 6434(b), which provides that the
$1,000 amount treated as a payment under
section 6434(a) is paid by the Secretary to
the Trump account of the eligible child.
II. Definitions
Proposed §301.6434-1(b) would define
terms that apply solely for purposes of
§301.6434-1.
Under proposed §301.6434-1(b)(1),
the term “eligible child” would mean an
individual (i) who the pilot program-elect-
ing individual anticipates will be that indi-
vidual’s qualifying child under section
152(c) for the taxable year of the pilot
program-electing individual in which the
pilot program election is made, (ii) who is
born in calendar year 2025, 2026, 2027, or
2028, (iii) who is a United States citizen,
(iv) to whom a social security number has
been issued, and (v) with respect to whom
no prior pilot program election has been
made by any individual and processed by
the Secretary. The birth year and citizen-
ship requirements in proposed §301.6434-
1(b)(1)(ii) and (iii) would implement
section 6434(c)(1) and (3), and the social
security number requirement in proposed
§301.6434-1(b)(1)(iv) would implement
section 6434(e).
The relationship requirement between
the pilot program-electing individual
and the eligible child, reflected as part of
the eligible child definition in proposed
§301.6434-1(b)(1)(i), is mandated by
section 6434(a), which provides that an
election is made by an individual “with
respect to an eligible child of the individ-
ual,” and section 6434(c), which provides
that an eligible child is a qualifying child
as defined in section 152(c). Although an
individual may anticipate that an eligible
child will be the individual’s qualifying
child under section 152(c) for an ongoing
taxable year, whether an eligible child is
indeed any individual’s qualifying child
under section 152(c) with respect to that
individual’s taxable year cannot be conclu-
sively determined until the close of such
taxable year. However, section 6434 does
not require elections to be made with ref-
erence to a closed taxable year of the pilot
program-electing individual. Thus, to pro-
vide the pilot program-electing individual
the flexibility to make the pilot program
election at any time during a calendar year
rather than wait until after the close of a
taxable year, proposed §301.6434-1(b)(1)
(i) permits the child’s eligibility as long as
a pilot program-electing individual antici-
pates the eligible child will be that individ-
ual’s qualifying child under section 152(c)
for the taxable year in which the election
is made. For additional information on
who is a qualifying child under section
152(c), potential pilot program-electing
individuals (including parents, foster par-
ents, and other relatives) can look to IRS
Publication 501, Dependents, Standard
Deduction, and Filing Information.
Lastly, with respect to the definition
of the term eligible child, under proposed
§301.6434-1(b)(1)(v), a child would no
longer be eligible once a pilot program
election is made and processed for that
child. This is required by section 6434(c)
(2), which provides that an eligible child,
among other requirements, is a child
with respect to whom no prior pilot pro-
gram election has been made. Proposed
§301.6434-1(b)(1)(v) would ensure that
an eligible child is not prevented from
receiving a $1,000 pilot program contri-
bution based on an erroneous or malicious
election by conditioning the eligibility cri-
teria on the making and processing of an
election, rather than solely the making of
an election.
Under proposed §301.6434-1(b)(2),
the term “pilot program election” means
an election under section 6434.
Under proposed §301.6434-1(b)(3), the
term “pilot program-electing individual”
means an individual authorized to make a
pilot program election with respect to an
eligible child. An individual is authorized
to make a pilot program election with
respect to an eligible child who the indi-
vidual anticipates will be the individual’s
qualifying child under section 152(c) for
the taxable year of the individual in which
the pilot program election is made, which
is the same requirement reflected in pro-
posed §301.6434-1(b)(1)(i) for the defini-
tion of eligible child. The definition of pilot
program-electing individual in proposed
§301.6434-1(b)(3) would cross-reference
the relevant portion of the definition of eli-
gible child in proposed §301.6434-1(b)(1)
(i). This definition accomplishes the pur-
pose of section 6434 to facilitate invest-
ment into and financial growth of an eli-
gible child’s Trump account by enabling
a pilot program election to be made at any
time during the calendar year. If section
6434 was interpreted to instead require
pilot program elections to be made with
respect to a calendar-based taxable year
of the pilot program-electing individ-
ual for which the eligible child was such
individual’s qualifying child under sec-
tion 152(c), the earliest a pilot program
election could possibly be made would be
after the close of the taxable year of the
pilot program-electing individual during
which the eligible child was born. Such
an interpretation would impose a restric-
tion on making a pilot program election
not found in section 6434 and would limit
the maximum growth potential of con-
tributions into the eligible child’s Trump
account. Furthermore, under section 6434,
the payment is deemed to be made by the
eligible child and has no connection to any
taxable year of the pilot program-electing
individual, thereby providing no clear
basis to tie a pilot program election to a
taxable year of the pilot program-elect-
ing individual. If a pilot program-electing
individual makes an election in anticipa-
tion that an eligible child will be the indi-
vidual’s qualifying child under section
152(c) and complies with all other rules
promulgated by the Secretary for section
6434 elections, the pilot program election
will not be rendered ineffective solely on
the basis that it is later determined that the
eligible child does not meet the definition
of a qualifying child of the individual for
the taxable year in which the pilot pro-
gram election is made.
Under proposed §301.6434-1(b)(4),
the term “Secretary” means the Secretary
of the Treasury or the Secretary’s delegate.
See section 7701(a)(11)(B) of the Code.
Under proposed §301.6434-1(b)(5),
the term “social security number” has the
meaning given such term in section 24(h)

March 23, 2026 764 Bulletin No. 2026–13
(7)(B), determined by substituting “before
the date of the election made under sec-
tion 6434” for “before the due date of such
return” in section 24(h)(7)(B)(ii).
Under proposed §301.6434-1(b)(6),
the term “special taxable year” means
a taxable period of an eligible child that
arises upon the processing of a pilot pro-
gram election and is deemed to close
immediately after arising, for which no
Federal income tax liability is owed, and
which bears no relationship to the Fed-
eral income tax liability of the pilot pro-
gram-electing individual for any taxable
period. This special taxable year is distinct
from any calendar-based taxable year for
the eligible child’s Federal income tax
liability and does not sever or modify the
eligible child’s calendar-based taxable
period. To implement the requirements of
section 6434(a), (b), and (f) as explained
in Section III of this Explanation of Provi-
sions, proposed §301.6434-1(c)(1) would
provide that a pilot program election is
made with respect to the eligible child’s
special taxable year, rather than with
respect to any calendar-based taxable year
for the eligible child’s Federal income tax
liability.
As explained in Section III of this
Explanation of Provisions, an overpay-
ment can only be determined after the
close of a taxable year by comparing the
amount of tax liability owed to the amount
of payments made. Like the proposed
definition of pilot program-electing indi-
vidual, the proposed definition of special
taxable year accomplishes the purpose of
section 6434 by allowing for the $1,000
pilot program contribution to be deposited
by the Secretary into the Trump account
without waiting for the close of a calen-
dar-based taxable year, thus facilitating
the financial growth of the Trump account.
Determining an overpayment from a spe-
cial taxable year also meets the statutory
intent that the contribution be made at
any time during a calendar year rather
than after the close of the taxable year for
which an election is made—at the earli-
est. Additionally, as explained more thor-
oughly in Section III of this Explanation
of Provisions, the proposed definition of a
special taxable year ensures that an eligi-
ble child’s deemed payment upon election
under section 6434(a) generates an over-
payment of $1,000 instead of the deemed
payment being reduced or eliminated if it
were used to satisfy a child’s potentially
unpaid Federal income tax liability for a
calendar-based taxable year election.
Under proposed §301.6434-1(b)(7), the
term “Trump account” has the meaning
given to the term in section 530A(b)(1).
This definition includes an initial Trump
account and a rollover Trump account.
III. Effect of a pilot program election
Proposed §301.6434-1(c)(1) would
provide that a pilot program election
must be made by a pilot program-electing
individual with respect to the special tax-
able year of an eligible child of the pilot
program-electing individual. Proposed
§301.6434-1(c)(2) would provide that
upon the processing of an election with
respect to an eligible child, the eligible
child would be treated as making a $1,000
payment against a Federal income tax
liability under subtitle A of the Code for
the eligible child’s special taxable year,
resulting in a $1,000 overpayment. Pro-
posed §301.6434-1(c)(3) would provide
that the $1,000 overpayment described
in §301.6434-1(c)(2) will be refunded by
the Secretary as a $1,000 pilot program
contribution to the eligible child’s Trump
account.
Section 6434 fits into the existing
framework for the refund of an overpay-
ment of tax but creates some special rules
for the determination and the refunding
of the overpayment. In Jones v. Liberty
Glass Co., 332 U.S. 524, 531 (1947), the
Supreme Court explained that an over-
payment of tax for a taxable year is deter-
mined by comparing the amount by which
payments exceed the amount of tax prop-
erly due at the close of the taxable year.
Under these rules, a taxpayer who pays
$1,000 towards a taxable year but owes
zero Federal income tax liability for that
taxable year will have an overpayment
of $1,000. See also section 6401(c) (“An
amount paid as tax shall not be considered
not to constitute an overpayment solely by
reason of the fact that there was no tax lia-
bility in respect of which such amount was
paid.”). In contrast, for example, a tax-
payer who pays $1,000 towards a taxable
year but owes $500 for that taxable year
will have an overpayment of only $500.
Once the IRS determines the amount of an
overpayment, the full amount of the over-
payment may not necessarily be refunded
to a taxpayer. Section 6402(a) provides the
IRS the discretion to credit an overpay-
ment against “any liability in respect of an
internal revenue tax on the part of the per-
son who made the overpayment.” Addi-
tionally, before the IRS can refund any
remaining overpayment, the refund must
be reduced and offset against any past-due
non-tax debts of the taxpayer described in
the provisions of section 6402(c), (d), (e),
and (f), otherwise known as mandatory
Treasury Offset Program offsets.
Concerning the determination of an
overpayment, section 6434(b) provides
that the “amount treated as a payment
under subsection (a) shall be paid by the
Secretary” to the eligible child’s Trump
account. Section 6434(a) provides that
the eligible child for whom an election is
made is treated as “making a payment . . .
in an amount equal to $1,000.” For most
children who have no Federal income
tax liability, the plain language of sec-
tion 6434(a) and (b) is consistent with the
Supreme Court’s explanation of how to
determine an overpayment in Jones v. Lib-
erty Glass. However, if section 6434(a)
were to be construed as providing for a
deemed payment of $1,000 for a taxable
year for which an eligible child owes a
Federal income tax liability, then that
child would have an overpayment only
if the deemed payment exceeded the tax
owed and, if so, such overpayment would
be less than $1,000. Read in conjunction,
however, section 6434(a) and (b) instruct
that the Secretary’s contribution to an eli-
gible child’s Trump account must be in the
amount of $1,000.
Moreover, section 6434(f) creates safe-
guards to ensure the entire $1,000 amount
is contributed to an eligible child’s Trump
account. As explained above, section
6402(a) provides that the IRS has the
discretion to credit an overpayment to
a taxpayer’s unpaid tax liabilities and
is required to reduce the refund of any
remaining overpayment by the manda-
tory Treasury Offset Program offsets of
section 6402(c), (d), (e), and (f). Section
6434(f), which is described in proposed
§301.6434-1(c)(4), ensures that the entire
$1,000 overpayment amount described
in proposed §301.6434-1(c)(2) would be
contributed into the eligible child’s Trump

Bulletin No. 2026–13 765 March 23, 2026
account as provided in section 6434(a)
and (b).
To implement the requirements of
section 6434(a), (b), and (f), proposed
§301.6434-1(c)(1) would provide that
a pilot program election is made with
respect to the eligible child’s special tax-
able year instead of the calendar year gen-
erally used for individual income taxes.
The use of a special taxable year instead
of a calendar year ensures that the plain
language of section 6434(a), (b), and (f)—
that when an election is made with respect
to an eligible child, the result is a $1,000
pilot program contribution to the eligible
child’s Trump account—may be accom-
plished with respect to any eligible child
for whom an election is made in com-
pliance with section 6434 and proposed
§301.6434-1.
Additionally, section 6434(b) and (i)
require that the $1,000 pilot program con-
tribution is made specifically to the sec-
tion 530A Trump account of the eligible
child. Proposed §301.6434-1(c)(3) would
provide that the $1,000 contribution will
be made to the Trump account of the eli-
gible child. Under section 6434(b) and (i)
and proposed §301.6434-1(c)(3) and (b)
(7), the $1,000 contribution may be made
to an eligible child’s initial Trump account
or to a rollover Trump account in the case
of an eligible child who has a rollover
Trump account. Because section 6434
only authorizes the Secretary to pay the
$1,000 contribution “to the Trump account
with respect to which such eligible child is
the account beneficiary,” it does not allow
for an eligible child who does not have a
Trump account to receive a $1,000 pilot
program contribution; nor does it allow
for an eligible child to receive the $1,000
pilot program contribution in any manner
other than as a contribution to the eligi-
ble child’s Trump account. Thus, if an eli-
gible child with respect to whom a pilot
program election is made does not have
an established Trump account for any rea-
son—including if a Trump account was
never established for the eligible child,
or if an eligible child’s Trump account
ceased to be a Trump account for any rea-
son including death of the eligible child—
the Secretary is not authorized to remit the
$1,000 pilot program contribution to any
recipient because such a remittance would
not be “to the Trump account with respect
to which such eligible child is the account
beneficiary.” See section 6434(b). Accord-
ingly, proposed §301.6434-1(c)(3) would
provide that the $1,000 overpayment
described in proposed §301.6434-1(c)(2)
will not be refunded unless the eligible
child has an established Trump account
and that no refund will be paid under the
provisions of section 6434 except as a
$1,000 pilot program contribution to the
eligible child’s Trump account.
Lastly, proposed §301.6434-1(c)(5)
would provide that a pilot program elec-
tion is not a claim for credit or refund of an
overpayment. Section 301.6402-2, which
establishes the rules for a claim for credit
or refund, provides that only the taxpayer
with the overpayment may file such a
claim. Section 6434(a), however, instructs
that a pilot program election is not made
by the eligible child for whom an over-
payment for contribution is generated; it is
instead made by a pilot program-electing
individual with respect to an eligible child
of the pilot program-electing individual.
Because it is the filing of the pilot program
election by the pilot program-electing
individual that generates the overpayment
that is refunded as a $1,000 pilot pro-
gram contribution into the eligible child’s
Trump account and the eligible child is
not the person making such pilot program
election, the pilot program election cannot
be a claim for credit or refund.
IV. Timing of election
Proposed §301.6434-1(d) would pro-
vide timing rules for pilot program elec-
tions as authorized by section 6434(d).
The rules of proposed §301.6434-1(d)
would clarify that an election may only be
made during the time period prescribed,
that relief for an untimely election is not
available under §§301.9100-1, 301.9100-
2, and 301.9100-3, that only the first elec-
tion made and processed with respect to
an eligible child will result in a $1,000
contribution to the eligible child’s Trump
account, and that no subsequent elections
will be processed after the first election is
processed.
Section 6434 does not set forth a spe-
cific period in which a pilot program elec-
tion must be made but instead prescribes
that elections must be made at such time
as the Secretary provides. Under pro-
posed §301.6434-1(d)(1)(i), elections
may be made starting on the day that a
child becomes eligible. An election made
on any earlier date would not be allowed
under section 6434 because it would not
be “an election . . . with respect to an eli-
gible child.” Proposed §301.6434-1(d)(1)
(ii) would provide that the last day for a
pilot program election with respect to an
eligible child would be December 31 of
the calendar year in which the eligible
child reaches age 17. This corresponds
with the termination of the growth period,
after which a child is no longer eligible to
open a Trump account pursuant to section
530A(1)(A)(ii)(I) and (2)(A) and many of
the special rules in section 530A no longer
apply to the account. This broad election
period—from the date of eligibility to the
final date of growth period—is intended
to ensure all children are able to receive a
$1,000 pilot program contribution if they
meet all section 6434 eligibility criteria
during the time period in which a child
would be eligible to have a Trump account
opened. In cases where a pilot program
election is not made until near the end of
the growth period, the Secretary can none-
theless still make a $1,000 pilot program
contribution to an eligible child’s Trump
account after the growth period ends as
long as a Trump account was established
for the eligible child under section 530A
and has not ceased to exist for any reason.
Proposed §301.6434-1(d)(2) would
provide that only the first pilot program
election processed by the IRS with respect
to an eligible child will result in a $1,000
contribution to the eligible child’s Trump
account. Once the first pilot program elec-
tion is processed no further election will
be processed. This rule conforms with the
section 6434(c)(2) requirement that an eli-
gible child means a child with respect to
whom no prior pilot program election has
been made. Because this rule only applies
once an election is processed, it would
ensure that an unprocessed erroneous or
malicious pilot program election would
not preclude an eligible child from receiv-
ing a pilot program contribution.
V. Manner of election
Proposed §301.6434-1(e)(1) would
provide that a pilot program election
must be made by a pilot program-electing

March 23, 2026 766 Bulletin No. 2026–13
individual on the form prescribed by the
Secretary or through an electronic appli-
cation or webpage made available by the
Secretary, in accordance with applica-
ble instructions. The IRS is using Form
4547, Trump Account Election(s), for this
purpose in calendar year 2026. A pilot
program election may be made any time
during the period in proposed §301.6434-
1(d)(1), including at the same time that
the pilot program-electing individual
files such individual’s Federal income tax
return. The pilot program election, how-
ever, is not a part of any individual’s tax
return and is independent of the filing of
a tax return. The IRS has released instruc-
tions for making pilot program elections
via Form 4547 and will provide instruc-
tions for making pilot program elections
via an electronic application or webpage
when made available by the Secretary.
Proposed §301.6434-1(e)(2) would reiter-
ate the requirement of section 6434(e) that
an eligible child’s social security number
is included with the pilot program election
for that eligible child. Because the length
of time varies in which a social security
number may be obtained, this rule rein-
forces the broad pilot program election
timing proposed in §301.6434-1(d)(1).
Proposed Applicability Date
The regulations are proposed to apply
on or after January 1, 2026. In accordance
with section 7805(b)(2), the Treasury
Department and the IRS intend to publish
final regulations within 18 months of the
date of enactment of section 6434.
Special Analyses
I. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, reducing costs, harmonizing
rules, and promoting flexibility.
The proposed regulations have been
designated by the Office of Management
and Budget’s (OMB’s) Office of Infor-
mation and Regulatory Affairs (OIRA)
as subject to review under Executive
Order 12866 pursuant to the Memoran-
dum of Agreement (MOA, July 4, 2025)
between the Treasury Department and the
OMB regarding review of tax regulations.
OIRA has determined that the proposed
rulemaking is economically significant
under section 3(f)(1) of Executive Order
12866 and subject to review under Exec-
utive Order 12866 and section 1(b) of the
MOA. Accordingly, the proposed regula-
tions have been reviewed by OMB. This
proposed rule is not expected to be consid-
ered a regulatory action under Executive
Order 14192 because it imposes no more
than de minimis costs.
Need for Regulation
The proposed regulations would
explain how to make a Trump accounts
contribution pilot program election under
section 6434 of the Internal Revenue
Code (Code). The proposed regulations
would also define terms for the purpose of
implementing section 6434, clarify the tax
consequences of making a pilot program
election, and explain the time and manner
of making a pilot program election.
The Statute and the Proposed Regulations
Public Law 119-21, commonly known
as the One, Big, Beautiful Bill Act of 2025,
added new sections 530A and 6434 to the
Code. Section 530A describes Trump
accounts and section 6434 describes the
Trump accounts contribution pilot pro-
gram. The proposed regulations explain
how the pilot program in section 6434 will
be implemented.
Section 530A defines a Trump
account as a traditional individual retire-
ment account (IRA) with some special
rules. Most special rules that distinguish
Trump accounts from other IRAs apply
only during the growth period. The first
day of the growth period is the day the
account is established, and the final day
of the growth period is December 31 of
the calendar year in which the account
beneficiary attains age 17. The rules for
traditional IRAs generally apply after the
growth period. A Trump account may be
established for the benefit of a child prior
to the calendar year in which the child
attains age 18 if the child has been issued
a social security number.
In general, distributions from Trump
accounts are not permitted during the
growth period. The entire balance of a
Trump account may be rolled over in a
direct trustee-to-trustee transfer to a roll-
over Trump account. The entire balance
of a Trump account may be rolled over
in a direct trustee-to-trustee transfer to an
account established under a section 529A
1

ABLE program (ABLE account) of the
account beneficiary in the calendar year
the account beneficiary attains age 17.
Investments in a Trump account must
track the returns of a broad index of equi-
ties in primarily U.S. companies for which
regulated futures contracts are traded,
avoid the use of leverage, and avoid
annual fees and expenses above 0.1%.
Trump accounts may receive contri-
butions from nonprofits, governments,
employers, and individuals. In general,
contributions to a Trump account are sub-
ject to an annual limit of $5,000, adjusted
for inflation.
Governments and nonprofits may only
make contributions through the Treasury
Department, and such contributions must
be made in equal amounts to the Trump
accounts of every account beneficiary in
a qualified class. Contributions from gov-
ernments and nonprofits through the Trea-
sury Department do not count towards the
$5,000 annual contribution limit.
Section 6434 describes the Trump
accounts contribution pilot program. In
the pilot program, the Secretary will pay
$1,000 to the Trump accounts of eligible
children for whom elections under sec-
tion 6434 are made. A U.S. citizen born in
2025, 2026, 2027, or 2028, who has been
issued a social security number, and for
1
Section 529A was enacted by the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014, which was enacted as part of the Tax Increase Prevention Act of 2014, Public Law
113-295 (128 Stat. 4010).

Bulletin No. 2026–13 767 March 23, 2026
whom no request for a pilot program con-
tribution has previously been processed is
eligible for a pilot program contribution.
Pilot program contributions do not count
towards the $5,000 annual contribution
limit.
The proposed regulations would define
the following terms for the purposes
of implementing section 6434: eligible
child, pilot program election, pilot pro-
gram-electing individual, and special
taxable year. A pilot program election is
an election under section 6434, that is, a
request for a pilot program contribution
to the eligible child’s Trump account.
An eligible child is a U.S. citizen born in
2025, 2026, 2027, or 2028, who has been
issued a social security number, for whom
no pilot program election has previously
been processed, and who is anticipated by
the pilot program-electing individual to
be that individual’s qualifying child under
section 152(c). A pilot program-electing
individual is an individual who is autho-
rized to make a pilot program election on
behalf of an eligible child. The definitions
of eligible child and pilot program-elect-
ing individual incorporate the following
relationship: the pilot program-electing
individual must anticipate that the eligi-
ble child will be a qualifying child of the
individual for tax purposes for the taxable
year in which the pilot program election
is made. A special taxable year is a tax-
able year of the eligible child that is (1)
created when a pilot program election is
processed, (2) deemed to close imme-
diately after arising, (3) defined to have
zero tax liability, (4) distinct from any
calendar-based taxable year for the child’s
income tax liability, and (5) not associated
with any taxable period of the pilot pro-
gram-electing individual.
The proposed regulations would clar-
ify the tax consequences of making a pilot
program election. Under the proposed reg-
ulations, when a pilot program election is
processed by the Secretary, the Secretary
would treat the eligible child as if the eli-
gible child had made a $1,000 payment
for the special taxable year. Because a
special taxable year has zero tax liability,
treating the child as if they had made a
$1,000 payment against Federal income
tax would result in an overpayment for the
special taxable year. The IRS would not
offset that overpayment by any other debts
owed by the eligible child or the pilot pro-
gram-electing individual. The Secretary
would remit the full $1,000 overpayment
for the special taxable year as a $1,000
pilot program contribution to the Trump
account of the eligible child.
The proposed regulations would also
explain the time and manner of making
a pilot program election. A pilot pro-
gram election would be made by a pilot
program-electing individual with respect
to an eligible child who the pilot pro-
gram-electing individual anticipates will
be the individual’s qualifying child under
section 152(c) for the taxable year of
the individual during which the election
is made. The first day a pilot program
election can be made is the day the child
becomes an eligible child, and the final
day a pilot program election can be made
is the final day of the calendar year in
which the child attains age 17. The pilot
program election would be made on a
form, electronic application, or webpage
provided by the IRS. The pilot program
election would not be made on the pilot
program-electing individual’s tax return.
Baseline
The Treasury Department and the IRS
have assessed the benefits and costs of the
proposed regulations relative to a no-ac-
tion baseline reflecting anticipated Fed-
eral income tax-related behavior in the
absence of these proposed regulations.
Affected Entities and Taxpayers
The proposed regulations are expected
to affect 15 million children in 12 million
families.
Economic Effects of the Proposed
Regulations
The proposed regulations would make
several choices that allow a pilot program
election to be made as early as a few
weeks after the birth of an eligible child
instead of waiting until the following cal-
endar year. For example, for a child born
in 2027, these choices provide the oppor-
tunity to earn up to one additional year
of investment returns, depending on the
child’s date of birth. The Treasury Depart-
ment and the IRS used historical returns
for a broad index of U.S. equities to quan-
tify the benefit of an additional six months
of investment returns by age 18.
2
Among
birth cohorts from June 1926 to May 2007,
the median difference in account value at
age 18 between $1,000 invested at birth
and $1,000 invested six months after birth
was $300.
Qualifying child standard
The proposed regulations would clar-
ify how to apply the statutory requirement
that the eligible child be a qualifying child
of the pilot program-electing individual.
The proposed regulations would require
a pilot program election to be made by an
individual who anticipates that the eligible
child will be a qualifying child for the year
in which the pilot program election is made.
An alternative would be to require a pilot
program election to be made by an individ-
ual for whom the eligible child was a qual-
ifying child for a closed tax year. The for-
ward-looking standard would allow the pilot
program election to be made earlier than
the backward-looking standard. For exam-
ple, under the forward-looking standard, an
election for a child born in 2027 could be
made as soon as the child is issued a social
security number. Under a backward-looking
standard, an election for a child born in 2027
could not be made until 2028.
This choice and several others would
allow a pilot program election to be made
as early as a few weeks after birth instead
of waiting until the following calen-
dar year. For a child born in 2027, these
choices provide the opportunity to earn
up to one additional year of investment
returns, depending on the child’s date of
birth. The Treasury Department and the
IRS used historical returns for a broad
index of U.S. equities to quantify the ben-
efit of an additional six months of invest-
2
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html.

March 23, 2026 768 Bulletin No. 2026–13
ment returns by age 18.
3
Among birth
cohorts from June 1926 to May 2007, the
median difference in account value at age
18 between $1,000 invested at birth and
$1,000 invested six months after birth was
$300.
Taxable period of payment against tax
The proposed regulations would clar-
ify the taxable period in which the child
is treated as making a $1,000 payment
against tax. The proposed regulations
would apply the $1,000 payment to a
special taxable year that is created when
a pilot program election is processed,
deemed to close immediately after arising,
and defined to have zero tax liability. An
alternative would be to apply the $1,000
payment to an ordinary taxable year of
the eligible child. Applying the $1,000
payment to a special taxable year allows
the refund to be processed earlier, that is
before the end of an ordinary taxable year.
This choice and several others would
allow a pilot program election to be made
as early as a few weeks after birth instead
of waiting until the following calendar
year. For example, for a child born in
2027, these choices provide the oppor-
tunity to earn up to one additional year
of investment returns, depending on the
child’s date of birth. The Treasury Depart-
ment and the IRS used historical returns
for a broad index of U.S. equities to quan-
tify the benefit of an additional six months
of investment returns by age 18.
4
Among
birth cohorts from June 1926 to May 2007,
the median difference in account value at
age 18 between $1,000 invested at birth
and $1,000 invested six months after birth
was $300.
Manner of pilot program election
The proposed regulations would clarify
how to make a pilot program election. The
proposed regulations would require a pilot
program election to be made on a form,
electronic application, or webpage. Under
the proposed regulations, a pilot program
election could be made at the same time
as when a tax return is filed, but it would
be on a form that is independent from the
pilot program-electing individual’s tax
return. An alternative would be to require
a pilot program election to be made on
the pilot program-electing individual’s
tax return. Requiring the pilot program
election to be made on a form that is inde-
pendent from the pilot program-electing
individual’s tax return would allow the
pilot program election to be made earlier
than a pilot program election made on a
tax return.
This choice and several others would
allow a pilot program election to be made
as early as a few weeks after birth instead
of waiting until the following calendar
year. For example, for a child born in
2027, these choices provide the oppor-
tunity to earn up to one additional year
of investment returns, depending on the
child’s date of birth. The Treasury Depart-
ment and the IRS used historical returns
for a broad index of U.S. equities to quan-
tify the benefit of an additional six months
of investment returns by age 18.
5
Among
birth cohorts from June 1926 to May 2007,
the median difference in account value at
age 18 between $1,000 invested at birth
and $1,000 invested six months after birth
was $300.
Earliest allowable pilot program
election
The proposed regulations would clar-
ify the earliest a pilot program election
can be made. The proposed regulations
would require a pilot program election to
be made no earlier than the day that a child
becomes eligible. An alternative would be
to require a pilot program election to be
made no earlier than January 1 of the year
after a child becomes eligible. Allowing a
pilot program election to be made as early
as the day that a child becomes eligible is
possible because of three other choices in
the proposed regulations: (1) requiring a
forward-looking qualifying child stan-
dard, (2) applying the $1,000 payment
to a special taxable year, and (3) requir-
ing the pilot program election to be on a
form independent from a tax return. The
proposed regulations made these choices
to allow for the earliest possible pilot pro-
gram election allowable by statute, which
is the day that the child becomes eligible.
This choice and several others would
allow a pilot program election to be made
as early as a few weeks after birth instead
of waiting until the following calendar
year. For example, for a child born in
2027, these choices provide the oppor-
tunity to earn up to one additional year
of investment returns, depending on the
child’s date of birth. The Treasury Depart-
ment and the IRS used historical returns
for a broad index of U.S. equities to quan-
tify the benefit of an additional six months
of investment returns by age 18.
6
Among
birth cohorts from June 1926 to May 2007,
the median difference in account value at
age 18 between $1,000 invested at birth
and $1,000 invested six months after birth
was $300.
Latest allowable pilot program election
The proposed regulations would clar-
ify the latest that a pilot program election
can be made. The proposed regulations
would require a pilot program election to
be made no later than December 31 of the
year the child attains age 17. An alterna-
tive would be to require a pilot program
election to be made no later than the year
in which the child attains age 3. Age 3
is salient because, in general, a refund
can be claimed no more than three years
after a Federal return is filed.
7
Age 17 is
salient because it coincides with the end of
the period when a Trump account can be
opened and the end of the growth period.
Age 17 was chosen rather than age 3 to
provide more time to make a pilot pro-
gram election. The proposed regulations
would clarify that the statute of limita-
tions for claiming a refund is not relevant
to the pilot program election because (1)
a pilot program election is not a claim for
a refund of an overpayment and (2) the
3
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html
4
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html
5
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html
6
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html
7
https://www.irs.gov/filing/time-you-can-claim-a-credit-or-refund

Bulletin No. 2026–13 769 March 23, 2026
$1,000 payment is applied to a special
taxable year, not to the year of birth or any
ordinary taxable year.
Investment growth is generally maxi-
mized by making the investment as early
as possible. However, some pilot pro-
gram-electing individuals might not make
a pilot program election as early as possi-
ble. One benchmark for timely pilot pro-
gram elections may be timely filing of tax
returns. Around ten percent of taxpayers
who are required to file a return fail to file
a timely return.
8
For example, for a child
born in 2027, the choice to require a pilot
program election to be made no later than
December 31 of the year in which the child
attains age 17 provides the opportunity to
make the pilot program election as late as
2044. The Treasury Department and the
IRS used historical returns for a broad
index of U.S. equities to quantify the bene-
fit at age 18 of returns on investments made
at various ages.
9
Among birth cohorts from
1926 to 2006, Table 1 shows that while an
earlier investment allows for more growth,
there are still typically benefits at age 18
from making an investment even at age 17.
Value at age 18 of investment in broad index of US equities
Investment scenario10th percentile50th percentile90th percentile
$1,000 at birth2,9806,18013,800
$1,000 at age 12,8605,69011,990
$1,000 at age 22,6804,92010,040
$1,000 at age 32,4004,7509,030
$1,000 at age 42,1504,2608,040
$1,000 at age 52,0203,9907,110
$1,000 at age 61,7703,6206,350
$1,000 at age 71,6603,2805,380
$1,000 at age 81,6803,1504,670
$1,000 at age 91,4802,7404,110
$1,000 at age 101,3502,4603,560
$1,000 at age 111,3402,3503,040
$1,000 at age 121,1802,0502,720
$1,000 at age 131,0501,8902,390
$1,000 at age 141,0201,6302,060
$1,000 at age 159901,4001,810
$1,000 at age 169701,2401,590
$1,000 at age 179001,1601,330
Notes: Percentiles at age 18 are calculated based on birth cohorts 1926 through 2006. For a particular birth cohort, the value at age 18
of one dollar invested at birth is calculated as the gross 18-year market return for a broad index of US equities.
Prior pilot program election criterion
The proposed regulations would clarify
how to apply the statutory requirement that
no prior pilot program election has been
made for an eligible child. The proposed
regulations would specify that a prior pilot
program election is only disqualifying if
the prior pilot program election was pro-
cessed by the Secretary. An alternative
would be to disqualify a child for whom
a prior pilot program election was made
even if that prior pilot program election
was not processed by the Secretary. Speci-
fying that a prior pilot program election is
only disqualifying if it was processed by
the Secretary allows children who are oth-
erwise eligible to receive the pilot program
contribution even if an error was made on
an initial pilot program election. The pro-
posed regulations propose this rule to avoid
penalizing eligible children for the behav-
ior of individuals who improperly attempt
to make pilot program elections.
To assess the benefits of allowing a
child for whom a pilot program election
was made but not processed to receive a
$1,000 pilot program contribution after a
subsequent pilot program election is made
properly, the best evidence comes from a
program in Oklahoma called SEED OK.
SEED OK generated experimental evi-
dence by embedding a randomized con-
trolled trial into the design of the program.
In 2007, Oklahoma randomly selected
Oklahoma families to participate in the
8
Langetieg, P., Payne, M. and Plumley, A., 2017. Counting Elusive Nonfilers using IRS Rather than Census Data. Internal Revenue Service Statistics of Income Working Paper.
9
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html

March 23, 2026 770 Bulletin No. 2026–13
SEED OK program and, for newborns of
consenting families randomly assigned to
the treatment group, automatically opened
Oklahoma 529 accounts for qualified
higher education expenses and deposited
$1,000. Four years after the intervention,
parents in the treatment group reported
that their children exhibited higher levels
of social-emotional development,
10
moth-
ers were more likely to be using main-
stream financial products,
11
and mothers
reported fewer depressive symptoms.
12

Thirteen years after the intervention, par-
ents in the treatment group had higher
levels of educational expectations and
college preparation.
13
Like other programs
organized or run by American states and
cities that fund asset-building accounts
for young children, long-term outcomes
on educational attainment, employment,
earnings, and wealth are not yet available
for SEED OK families because the oldest
participants are still young adults.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) generally
requires that a Federal agency obtain OMB
approval before collecting information
from the public, whether that collection
of information is mandatory, voluntary, or
required to obtain or retain a benefit. An
agency may not conduct or sponsor, and a
person is not required to respond to, a col-
lection of information unless it displays a
valid control number assigned by OMB.
These proposed regulations describe
an election required under section 6434 as
set forth in proposed §301.6434-1 (pilot
program election). Specifically, section
6434(d) grants the Secretary the authority
to establish the time and manner of the pilot
program election and proposed §301.6434-
1(e) would provide that the pilot program
election is made on a form prescribed by
the Secretary or through an electronic
application or webpage made available by
the Secretary, in accordance with applica-
ble instructions. A taxpayer would use such
form or electronic application to make
a pilot program election for the Trump
accounts contribution pilot program under
section 6434 and to establish eligibility.
The information provided on the form or
electronic application will be used by the
IRS for tax compliance purposes and to
determine election eligibility. The burden
associated with this election is included in
Form 4547, Trump Account Election(s),
and its instructions and approved with
OMB control number 1545-2336 in accor-
dance with PRA procedures under 5 CFR
1320.10. The Secretary may establish an
electronic application or webpage to col-
lect the same information. If established,
the burden associated with this electronic
application will be included on the applica-
tion and approved by OMB in accordance
with the same PRA procedures.
III. Regulatory Flexibility Act
The Secretary of the Treasury hereby
certifies that these proposed regulations
would not have a significant economic
impact on a substantial number of small
entities pursuant to the Regulatory Flex-
ibility Act (5 U.S.C. chapter 6). The pro-
posed rules would affect any individual
who would like to make a pilot program
election or receive a $1,000 pilot program
contribution. By statute, small entities are
not permitted to make a pilot program
election or to receive a $1,000 pilot pro-
gram contribution. The proposed rules
would not impose any requirement or obli-
gation upon small entities. Accordingly, a
regulatory flexibility analysis under the
Regulatory Flexibility Act is not required.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result in
expenditures in any one year by a State,
local, or Tribal government, in the aggre-
gate, or by the private sector, of $100
million in 1995 dollars, updated annually
for inflation. These proposed regulations
do not include any Federal mandate that
may result in expenditures by State, local,
or Tribal governments, or by the private
sector in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local gov-
ernments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Execu-
tive order. These proposed regulations do
not have federalism implications and do
not impose substantial direct compliance
costs on State and local governments or
preempt State law within the meaning of
the Executive order.
VI. Small Business Administration
Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking
will be submitted to the Chief Counsel for
the Office of Advocacy of the Small Busi-
ness Administration for comment on its
impact on small business.
Comments and Request for a Public
Hearing
Before these proposed amendments to
the final regulations are adopted as final
regulations, consideration will be given to
any comments that are timely submitted
to the IRS as prescribed in this preamble
under the ADDRESSES heading. The
Treasury Department and the IRS request
comments on all aspects of the proposed
10
Huang, J., Sherraden, M., Kim, Y. and Clancy, M., 2014. Effects of Child Development Accounts on early social-emotional development: An experimental test. JAMA pediatrics, 168(3),
pp.265-271.
11
Huang, J., Sherraden, M.S., Sherraden, M. and Johnson, L., 2022. Experimental effects of child development accounts on financial capability of young mothers. Journal of Family and
Economic Issues, 43(1), pp.36-50.
12
Huang, J., Sherraden, M. and Purnell, J.Q., 2014. Impacts of Child Development Accounts on maternal depressive symptoms: Evidence from a randomized statewide policy experiment.
Social Science & Medicine, 112, pp.30-38.
13
Sun, S., Huang, J. and Sherraden, M., 2025. The Long-Term Impacts of Child Development Accounts on Parental Educational Expectations and College Preparation. Social Service Review,
99(2).

Bulletin No. 2026–13 771 March 23, 2026
regulations. Any comments submitted will
be available at https://www.regulations.
gov or upon request. A public hearing
will be scheduled if requested in writing
by any person who timely submits elec-
tronic or written comments. Requests for
a public hearing are also encouraged to be
made electronically. If a public hearing is
scheduled, notice of the date and time for
the public hearing will be published in the
Federal Register.
Drafting Information
The principal author of these proposed
regulations is Molly E. Lovern of the
Office of Associate Chief Counsel (Proce-
dure and Administration). Other person-
nel from the Treasury Department and the
IRS participated in its development.
Lists of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and IRS propose to amend 26 CFR part
301 as follows:
PART 301–PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation
for part 301 is amended by adding an
entry for §301.6434-1 in numerical order
to read, in part, as follows:
Authority: 26 U.S.C. 7805.
* * * * *
Section 301.6434-1 also issued under
26 U.S.C. 6434(d).
* * * * *
Par. 2. Section 301.6434-1 is added to
read as follows:
§301.6434-1 Election for Trump
accounts contribution pilot program.
(a) In general. This section provides
rules for the Trump accounts contribu-
tion pilot program and pilot program
election under section 6434 of the Inter-
nal Revenue Code (Code). A pilot pro-
gram-electing individual must make a
pilot program election with respect to
an eligible child of such individual in
order for the Secretary to make a $1,000
contribution into the Trump account for
which such eligible child is the account
beneficiary ($1,000 pilot program con-
tribution).
(b) Definitions. The following defi-
nitions apply solely for purposes of this
section.
(1) Eligible child. The term eligible
child means an individual:
(i) Who the pilot program-electing
individual anticipates will be that individ-
ual’s qualifying child under section 152(c)
of the Code for the taxable year of the
pilot program-electing individual in which
the pilot program election is made;
(ii) Who is born after December 31,
2024, and before January 1, 2029;
(iii) Who is a United States citizen;
(iv) To whom a social security number
has been issued; and
(v) With respect to whom no prior pilot
program election has been made by any
individual and processed by the Secretary.
(2) Pilot program election. The term
pilot program election means an election
under section 6434.
(3) Pilot program-electing individual.
The term pilot program-electing indi-
vidual means an individual authorized
to make a pilot program election with
respect to an eligible child. An individual
is authorized to make a pilot program elec-
tion if the eligible child for whom the pilot
program election is to be made meets the
requirements in paragraph (b)(1)(i) of this
section with respect to such individual.
(4) Secretary. The term Secretary
means the Secretary of the Treasury or the
Secretary’s delegate.
(5) Social security number. The term
social security number has the meaning
given such term in section 24(h)(7)(B)
of the Code, determined by substituting
“before the date of the election made
under section 6434” for “before the due
date of such return” in section 24(h)(7)(B)
(ii).
(6) Special taxable year. The term spe-
cial taxable year means a taxable period
of an eligible child for a Federal income
tax liability under subtitle A of the Code
solely for the purposes of section 6434:
(i) That is deemed to arise solely upon
the Secretary’s processing of a pilot pro-
gram election with respect to the eligible
child;
(ii) That is deemed to close immedi-
ately after arising;
(iii) For which no Federal income tax
liability is owed; and
(iv) Which bears no relation to the Fed-
eral income tax liability of the pilot pro-
gram-electing individual for any taxable
period.
(7) Trump account. The term Trump
account has the meaning given such term
in section 530A(b)(1) of the Code.
(c) Effect of pilot program election--(1)
In general. A pilot program election must
be made by a pilot program-electing indi-
vidual with respect to the special taxable
year of an eligible child of the pilot pro-
gram-electing individual. A pilot program
election has no effect on any taxable period
of the pilot program-electing individual.
(2) Deemed payment. Upon the Secre-
tary’s processing of a pilot program elec-
tion with respect to an eligible child, the
eligible child will be treated as making a
payment in the amount of $1,000 against
the eligible child’s Federal income tax
liability under subtitle A of the Code for
the eligible child’s special taxable year,
resulting in a $1,000 overpayment for the
eligible child’s special taxable year.
(3) Refund of overpayment as contribu-
tion. The $1,000 overpayment described
in paragraph (c)(2) of this section will
only be refunded by the Secretary as a
$1,000 pilot program contribution directly
to the Trump account established with
respect to the eligible child. Under no cir-
cumstances will a refund be made under
the provisions of section 6434 except as
a $1,000 pilot program contribution to the
Trump account established with respect to
the eligible child.
(4) Excepted from reduction or off-
set. The $1,000 overpayment described
in paragraph (c)(2) of this section will
be refunded by the Secretary as a $1,000
pilot program contribution to the Trump
account of the eligible child without being
offset against past-due debts under com-
mon law or section 6402(c), (d), (e), and
(f) of the Code or credited under section
6402(a) against any other assessed Federal
tax liabilities of the pilot program-electing
individual or eligible child.

March 23, 2026 772 Bulletin No. 2026–13
(5) Not a claim for credit or refund. A
pilot program election does not constitute
a claim for credit or refund.
(d) Timing of election--(1) Election
period. A pilot program election must be
made:
(i) No earlier than the day the eligible
child meets the definition of an eligible
child under paragraph (b)(1) of this sec-
tion; and
(ii) No later than December 31 of the
calendar year in which the eligible child
attains age 17.
(2) Resolving multiple elections for an
eligible child. Only the first pilot program
election processed by the Secretary with
respect to an eligible child will result in
a $1,000 overpayment being refunded as
a $1,000 pilot program contribution by
the Secretary into the Trump account of
such eligible child under paragraph (c)(3)
of this section. Once the Secretary pro-
cesses the first pilot program election with
respect to an eligible child, no further pilot
program elections for such eligible child
will be processed.
(3) 9100 relief not available. Relief
is not available under §§301.9100-1,
301.9100-2, and 301.9100-3 to make a
late pilot program election under section
6434.
(e) Manner of making election--(1)
In general. A pilot program election
must be made by a pilot program-elect-
ing individual on the form prescribed by
the Secretary or through an electronic
application or webpage made available
by the Secretary, in accordance with
applicable instructions. No pilot pro-
gram election will be processed and no
$1,000 pilot program contribution to
a Trump account under paragraph (c)
(3) of this section will be made unless
the pilot program-electing individual
makes the pilot program election in
such manner.
(2) Social security number required. A
pilot program election made with respect
to an eligible child must include the eli-
gible child’s social security number. No
pilot program election will be processed
and no $1,000 pilot program contribution
to a Trump account under paragraph (c)(3)
of this section will be made unless such
pilot program election includes the eligi-
ble child’s social security number.
(f) Applicability date. This section
applies on or after January 1, 2026.
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register March
6, 2026, 8:45 a.m., and published in the issue of the
Federal Register for March 9, 2026, 91 FR 11203)
Notice of Proposed
Rulemaking
Trump Accounts
REG-117270-25
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing.
SUMMARY: This document contains
proposed regulations relating to Trump
accounts. The proposed regulations pro-
vide guidance on making an election to
open a Trump account and reserve addi-
tional sections for further guidance on
Trump accounts. The proposed regula-
tions would affect children eligible to have
a Trump account, individuals who would
make elections with respect to those chil-
dren, and trustees of Trump accounts.
DATES: Written or electronic comments
and requests for a public hearing must be
received by May 8, 2026.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at https://www.regulations.gov
(indicate IRS and REG-117270-25) by
following the online instructions for sub-
mitting comments. Requests for a public
hearing must be submitted as prescribed
in the “Comments and Requests for a
Public Hearing” section. Once submitted
to the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish for
public availability any comments submit-
ted to the IRS’s public docket on www.
regulations.gov. Send paper submissions
to: CC:PA:01:PR (REG-117270-25), room
5503, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulation, Neil Sandhu at (804) 916-
3775; concerning submissions of com-
ments or a public hearing, the Publications
and Regulations Section at (202) 317-
6091 (not toll-free numbers) or by email
at publichearings@irs.gov (preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed
amendments to the Income Tax Regula-
tions (26 CFR part 1) to implement sec-
tion 530A of the Internal Revenue Code
(Code). Section 530A(a) authorizes the
Secretary
1
to prescribe special rules for
when a Trump account is not treated in
the same manner as an individual retire-
ment account (IRA) under section 408(a).
Section 530A(b)(1)(A)(i) provides that an
individual’s first Trump account (initial
Trump account) is to be “created or orga-
nized by the Secretary.” Section 530A(b)
(1)(B) provides that a Trump account
must be “designated (in such manner as
the Secretary shall prescribe)” at the time
of its establishment as a Trump account.
Section 530A(b)(2)(C) authorizes the Sec-
retary to prescribe rules regarding the time
and manner for making elections to estab-
lish a Trump account. Section 408(a)(2)
authorizes the Secretary to approve non-
bank trustees for an IRA. Section 7805(a)
authorizes the Secretary to “prescribe
all needful rules and regulations for the
enforcement of [the Code], including all
rules and regulations as may be necessary
by reason of any alteration of law in rela-
tion to internal revenue.”
1
Section 7701(a)(11)(B) provides that the term “Secretary” means the Secretary of the Treasury or his delegate. Section 7701(a)(12)(A)(i) defines delegate to include any agency of the
Treasury Department, which includes the IRS.

Bulletin No. 2026–13 773 March 23, 2026
Background
Section 70204 of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
referred to as the One, Big, Beautiful Bill
Act, added new sections 530A, 128, and
6434 to the Code. Section 530A provides
for the establishment of a Trump account
for an eligible individual.
A Trump account is a type of traditional
IRA established for the exclusive benefit
of an eligible individual or such eligible
individual’s beneficiaries under section
530A. The Secretary will create or orga-
nize the initial Trump account for each
eligible individual. An eligible individual
is any individual (i) who has not attained
age 18 before the close of the calendar
year in which an election to open an initial
Trump account is made, (ii) for whom a
social security number (within the mean-
ing of section 24(h)(7)) has been issued
before the date on which the election is
made, and (iii) for whom the election is
made. After an initial Trump account has
been established, a subsequent Trump
account (rollover Trump account) may
be established for the account beneficiary
during the period that begins when such
initial Trump account is established and
that ends on December 31
st
of the calen-
dar year in which the account beneficiary
2

of the initial Trump account attains age
17 (growth period). The rollover Trump
account must be funded by a qualified
rollover contribution, which is a trustee-
to-trustee transfer of the entire account
balance from the account beneficiary’s
existing Trump account.
3

A Trump account is subject to certain
special rules inapplicable to other tradi-
tional IRAs. The special rules that apply
only during the growth period include rules
regarding contributions, investments, dis-
tributions, and reporting. After the growth
period, most of the special rules no longer
apply and the rules under section 408 gov-
erning traditional IRAs generally apply.
Proposed regulations regarding the spe-
cial rules that apply during and after the
growth period are reserved in this docu-
ment. The Treasury Department and IRS
anticipate proposing regulations regarding
these rules at a future date.
Additionally, section 70204 of the
One, Big, Beautiful Bill Act added sec-
tion 6434, which provides for a one-time
$1,000 pilot program contribution from
the Secretary to the Trump account of an
eligible child with respect to whom an
election is made under section 6434. Sec-
tion 6434(a) provides that an election for
the pilot program contribution is made by
an individual with respect to an eligible
child of that individual. Section 6434(c)
provides that an eligible child is a quali-
fying child under section 152(c) who (i) is
born during the 2025, 2026, 2027, or 2028
calendar years; (ii) has had no prior pilot
program election made by any individual;
and (iii) is a United States citizen. The
Treasury Department and the IRS are pro-
posing regulations under section 6434 in
a separate notice of proposed rulemaking
(REG-117002-25) published elsewhere in
this issue of the Federal Register.
Because the criteria under section 530A
to be an eligible individual for whom an
initial Trump account can be opened are
less restrictive than the criteria under sec-
tion 6434 to be an eligible child for a pilot
program contribution, only some eligible
individuals will also be an eligible child.
Similarly, the criteria under section 530A
for who can make the election to open an
initial Trump account are less restrictive
than the criteria under section 6434 for
who can make the election for a pilot pro-
gram contribution.
Section 128 employer contributions
paid to a Trump account of an employee
or a dependent of an employee are not
includible in the employee’s income.
Such contributions are limited to $2,500,
subject to cost-of-living adjustments after
2027. Section 128 employer contributions
must be made pursuant to a section 128(c)
Trump account contribution program.
(The Treasury Department and the IRS
intend to issue guidance under section 128
at a future date.)
Notice 2025-68, 2025-52 IRB 856,
informed taxpayers that the Treasury
Department and the IRS intend to pro-
pose regulations providing guidance with
respect to section 70204, including with
respect to making an election to open
an initial Trump account. The notice
addresses certain initial questions related
to Trump accounts and requests com-
ments, with the comment period ending
February 20, 2026. The notice indicates
that proposed regulations regarding the
election to open an initial Trump account
(that is, these proposed regulations) may
be issued prior to the end of the comment
period and to the extent comments in
response to the notice regarding that sub-
ject are not received in time to consider
in drafting the proposed regulations, they
will be considered in drafting the final reg-
ulations.
Explanation of Provisions
Proposed §1.530A-1 would provide
general requirements for Trump accounts,
certain definitions relating to Trump
accounts, rules regarding the election to
open an initial Trump account, and rules
regarding the responsible party for the ini-
tial Trump account.
I. Trump Accounts - General
Requirements
As provided under section 530A(b)(1),
proposed §1.530A-1(b)(1) would provide
that a Trump account is a type of tradi-
tional IRA that is established for the exclu-
sive benefit of an eligible individual and,
after the death of the individual, his or her
beneficiaries. As provided under section
530A(h)(1), proposed §1.530A-1(b)(1)
would clarify that a Trump account cannot
be a SIMPLE IRA under section 408(p)
and cannot accept contributions from an
employer’s SEP arrangement under sec-
tion 408(k).
Proposed §1.530A-1(b)(2) would pro-
vide requirements for a Trump account.
First, as provided under section 530A(b)
(1)(A)(i) and (ii), a Trump account is
either (i) an initial Trump account, which
is a Trump account created or organized
by the Secretary for an eligible individual,
2
After an initial Trump account has been opened for an eligible individual, the individual is referred to as the account beneficiary.
3
A Trump account qualified rollover contribution under section 530A(e) may be made only during an account beneficiary’s growth period and is different from and unrelated to a qualified
rollover contribution for a Roth IRA under section 408A(e).

March 23, 2026 774 Bulletin No. 2026–13
or (ii) a rollover Trump account, which is a
subsequent Trump account created during
the growth period and funded by a quali-
fied rollover contribution from the account
beneficiary’s existing Trump account.
4

Because a rollover Trump account must be
funded by a qualified rollover contribution
(which is a transfer of the entire account
balance from the individual’s prior Trump
account), an individual is permitted to
have only one Trump account containing
funds (funded Trump account) at a time.
Second, because a Trump account is
a traditional IRA, the written governing
instrument establishing a Trump account
must generally meet the requirements of
section 408(a)(1) through (6), as well as
the requirements of section 530A(b)(1)
(C)(i) through (iii). The written govern-
ing instrument generally should reflect
both the rules that apply during the
growth period and the rules that apply
after the growth period. The requirements
of section 530A(b)(1)(C)(i) through (iii)
would be clarified in §§1.530A-2 through
1.530A-4, which are reserved in this doc-
ument and are expected to be proposed in
the future.
Third, under the authority in sec-
tions 408(a)(2) and 530A(a), proposed
§1.530A-1(b)(2)(iii) would provide for the
automatic approval to act as a trustee of a
Trump account of any person approved by
the IRS as of December 31, 2025, to be a
nonbank trustee of an IRA. Persons who
are approved by the IRS after December
31, 2025, must request approval in the
application to act as a trustee of a Trump
account. The Treasury Department and
the IRS are also considering changes to
the requirements to be a nonbank trustee
and request comments. In particular,
comments are requested on whether the
adequacy of net worth requirement in
§1.408-2(e)(5)(ii) should be changed to
treat certain debt as equity (for example,
for broker-dealers, debt meeting the con-
ditions specified in the rule may be treated
as capital pursuant to the Securities and
Exchange Commission rule in 17 CFR
240.15c3-1), whether the special rule for
a governmental unit seeking to be a non-
bank trustee in §1.408-2(e)(8) should be
expanded to include other types of IRAs
(including Trump accounts) beyond a
deemed IRA that is part of the govern-
mental unit’s own qualified employer
plan, and whether the fiduciary experience
requirement in §1.408-2(e)(2)(iii) should
take into account the fiduciary experience
of subcontractors of the applicant.
Fourth, as provided under sec-
tion 530A(b)(1)(B), the written governing
instrument establishing a Trump account
must clearly designate the account as a
Trump account at the time of establish-
ment. Proposed §1.530A-1(b)(2)(iv)
would also require that the account must
be titled as a Trump account.
Proposed §1.530A-1(b)(3) would
outline the general areas where Trump
accounts differ from other traditional
IRAs. There are special rules for Trump
accounts during the growth period related
to: contributions (as provided under section
530A(c)); investments (as provided under
section 530A(b)(3)); distributions (as pro-
vided under section 530A(d)); reporting
(as provided under section 530A(i)); and
coordination with IRA rules (as provided
under section 530A(h)). These require-
ments would be clarified in §§1.530A-2
through 1.530A-6, which are reserved in
this document and are expected to be pro-
posed in the future. Proposed §1.530A-
1(b)(3) would also provide that, after the
growth period, the rules under section 408
that apply to other traditional IRAs gener-
ally apply to Trump accounts (as provided
under section 530A(a) and (h)).
Proposed §1.530A-1(b)(4) would
define terms that apply for purposes of
section 530A and the regulations thereun-
der.
In accordance with section 530A(b)(4),
proposed §1.530A-1(b)(4)(i) would define
account beneficiary as the individual for
whom a Trump account was established.
Proposed §1.530A-1(b)(4)(ii) would
define authorized individual as the indi-
vidual described in proposed §1.530A-
1(c)(1)(i).
In accordance with section 530A(b)
(2), proposed §1.530A-1(b)(4)(iii) would
define eligible individual as any individual
who has not attained age 18 before the end
of the calendar year in which an election
to open an initial Trump account is made
under §1.530A-1(c), has been issued a
social security number within the meaning
of section 24(h)(7) before the election is
made, and for whom the election is made
pursuant to proposed §1.530A-1(c).
Proposed §1.530A-1(b)(4)(iv) would
define an account beneficiary’s growth
period as the period that begins when the
initial Trump account is established and
ends on December 31 of the calendar year
in which the account beneficiary attains
age 17. This term is created for ease of
reference and stands for the concept gen-
erally used in section 530A of “the period
before the first day of the calendar year in
which the account beneficiary attains age
18.”
Proposed §1.530A-1(b)(4)(v) would
define IRA for purposes of section 530A
as an individual retirement account under
section 408(a) and includes a custodial
account that is treated as a trust pursuant
to section 408(h). Although in other places
in the Code and regulations, the term
IRA includes both individual retirement
accounts under section 408(a) and indi-
vidual retirement annuities under section
408(b), this definition excludes individual
retirement annuities under section 408(b),
in accordance with section 530A(b)(1).
Proposed §1.530A-1(b)(4)(vi) would
define pilot program contribution as a
$1,000 contribution made by the Secre-
tary upon the processing of an election
for the Trump accounts contribution pilot
program under section 6434. Only indi-
viduals who meet the definition of an eli-
gible child under section 6434 (which is
different from the section 530A(b)(2) defi-
nition of eligible individual) are eligible to
receive a pilot program contribution.
In accordance with section 530A(e),
proposed §1.530A-1(b)(4)(vii) would
define qualified rollover contribution
as a direct trustee-to-trustee transfer of
the account beneficiary’s entire Trump
account balance to a rollover Trump
account for the same account beneficiary.
Proposed §1.530A-1(b)(4)(viii) would
define traditional IRA as an individual
retirement account under section 408(a)
that is not a Roth IRA under section 408A.
Proposed §1.530A-1(b)(5) would pro-
vide that, for purposes of section 530A,
4
The Treasury Department and IRS intend to release sample language for rollover Trump accounts in future guidance.

Bulletin No. 2026–13 775 March 23, 2026
an individual will attain an age on the
individual’s birthday (the birthday rule).
See Rev. Rul. 2003-72, 2003-33 IRB 346,
for other instances in which the birthday
rule is applied for specific sections of the
Code.
II. Election to Open an Initial Trump
Account
A. Who can make the election
Proposed §1.530A-1(c)(1) would pro-
vide that an election to open an initial
Trump account for an eligible individual
could be made either by an authorized
individual or by the Secretary, in accor-
dance with the two methods for making an
election provided under section 530A(b)
(2)(C).
As provided under section 530A(b)(2)
(C)(ii), a person other than the Secretary
(which the proposed regulation would
limit to a particular person referred to as
the “authorized individual”) may make
the election if no prior election to open
an initial Trump account has been made
by the Secretary for the eligible individ-
ual. Under the proposed regulation, an
authorized individual would be defined
in two different ways. If an election under
section 6434 for a pilot program contribu-
tion is being made at the same time as the
election to open the initial Trump account,
proposed §1.530A-1(c)(1)(i)(A) would
provide that the authorized individual is
the individual authorized to make (and is
making) the election under section 6434
for a pilot program contribution. This
approach would ensure that the person
permitted to elect to open the initial Trump
account is the same person making a pilot
program election under section 6434. The
proposed regulations would provide that,
by making the election, the authorized
individual is representing, under penalties
of perjury, that he or she is the pilot pro-
gram-electing individual.
If a pilot program election is not being
made at the same time as the election to
open an initial Trump account (for exam-
ple, because the eligible individual was
born before January 1, 2025, and there-
fore is not eligible for a pilot program
contribution), proposed §1.530A-1(c)(1)
(i)(B) would provide an ordering rule to
determine who is the authorized individ-
ual for purposes of making the election to
open an initial Trump account. Because
only one election to open an initial Trump
account can be made for an eligible indi-
vidual, the Treasury Department and the
IRS believe that an ordering rule is nec-
essary to provide a clearer process for
determining who may make that election.
Under the proposed ordering rule, the
authorized individual would be, in order
of priority, a legal guardian, parent, adult
sibling, or grandparent of the eligible
individual. If multiple individuals share
the same highest level of priority and no
prior election has been made for the eli-
gible individual, any individual with that
level of priority may make the election to
open an initial Trump account. Because
no pilot program election is being made,
there is no need to conform to the require-
ments of section 6434. This ordering rule
is based on §1.529A-2(c), which governs
who (other than the designated beneficiary
of an account established under a section
529A
5
qualified ABLE program (an ABLE
account)) may establish the designated
beneficiary’s only ABLE account. The
proposed regulations would provide that,
by making the election, the authorized
individual is representing, under penalty
of perjury, that he or she is authorized
under these rules to open the initial Trump
account for the eligible individual and that
there is no other person with a higher pri-
ority available to make the election.
Comments are requested on (1) whether
definitions are needed for the terms
“legal guardian,” “parent,” “sibling,”
and “grandparent,” (2) whether any other
individual who bears a relationship to the
eligible individual under section 152(c)(2)
should also be an authorized individual,
and (3) who may be the authorized indi-
vidual in situations involving foster chil-
dren, orphans, emancipated minors, wards
of the State, and other situations involving
minors that may need clarification in the
regulations (particularly, whether a State
that is the guardian of the child would be
an authorized person eligible to open the
account).
Alternatively, as would be provided in
proposed §1.530A-1(c)(1)(ii), if an elec-
tion was made by an individual who was
not an authorized individual with respect
to an eligible individual at the time that
the election was made, the Secretary is
deemed to have made the election to
open the initial Trump account. In such
instance, even though the Trump account
was opened based on an election by an
individual who was not an authorized
individual, the account will not cease to
be a Trump account. See Section II.C for
certain situations in which a responsible
party may be removed and replaced.
The Treasury Department and the IRS
have received comments that the Secre-
tary should make an election on behalf of
each individual who has met the require-
ments to be an eligible individual based
on information from tax returns or other-
wise (for example, from Social Security
Administration data). Commenters argue
that making an election to open an initial
Trump account on behalf of these chil-
dren is within the authority granted to the
Secretary under section 530A(b)(2)(C)(i).
Commenters point to the success of auto-
matic enrollment (opt-out design) in anal-
ogous state-based early wealth building
programs and also in qualified retirement
plans. These opt-out designs (which do
not require any participant action before
enrollment) have increased participation
relative to opt-in designs (which require
action before enrollment).
Notably, opt-out designs that exist in
analogous state-based early wealth build-
ing programs and qualified retirement
plans involve pooled accounts as opposed
to individual retirement accounts. Pooled
accounts are well-suited to automatic
enrollment because a plan or program
can add a new individual as a participant
or beneficiary of an existing pooled vehi-
cle without establishing a new, separately
maintained account in that individual’s
name. By contrast, automatically opening
a Trump account would require establish-
ing a new individual account and com-
pleting the associated administrative steps
needed to open and maintain that account
in compliance with the Code and other
applicable law (including federal and state
5
Section 529A was enacted by Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014, which was enacted as part of the Tax Increase Prevention Act of 2014, Public Law 113-295
(128 Stat. 4010).

March 23, 2026 776 Bulletin No. 2026–13
banking, securities, and anti-money laun-
dering laws).
Although opt-out designs would result
in higher participation, the Treasury
Department and the IRS have determined
that it is necessary to limit the situations in
which the Secretary will make the election.
Most significantly, the Secretary would be
unable to fulfill certain requirements to
open and operate a Trump account with-
out disclosure of taxpayer information.
Section 6103 prohibits the disclosure or
inspection of information from taxpayers’
tax returns or that is otherwise received,
recorded, prepared, furnished to, or col-
lected by the IRS with respect to the tax-
payer except as expressly authorized in
the Code. Without an exception from the
prohibition on disclosure, the Treasury
Department would be unable to perform
necessary actions to open an account,
make eligible investments (which could
be reportable financial transactions), or
assign a responsible party other than the
Secretary; thus, an account opened in this
way would therefore be unable to comply
with the Code and applicable law.
Without an exception to section 6103,
the Secretary may be prohibited from
disclosing the existence of the Trump
account to any individuals who might
apply to become a responsible party. This
would be a barrier to the account receiving
any contributions from family members,
who would not have any account infor-
mation, or to receiving the pilot program
contribution (because an election must be
made by a pilot program-electing indi-
vidual under section 6434). It would also
prevent families from opening rollover
Trump accounts because there would be
no ability to authorize a qualified rollover
contribution, which is needed to fund the
rollover Trump account. Keeping the Sec-
retary as the responsible party would be
particularly problematic for account ben-
eficiaries otherwise eligible for a rollover
to an ABLE account because the Secretary
generally will have no way of knowing
whether such a rollover would be appro-
priate for a particular beneficiary.
The Treasury Department and the IRS
have sought to make the election process
as simple and frictionless as possible by
permitting individuals to file a one-page
Form 4547 at the time of filing their tax
return or at a different time, or through an
electronic application or webpage made
available by the Secretary. Comments are
requested on additional ways in which
the Treasury Department and the IRS
can further simplify making the election
to open an initial Trump account while
complying with the requirements under
the Code and applicable law (including
federal and state banking, securities,
and anti-money laundering laws). Com-
ments are also requested on whether the
Treasury Department and the IRS should
authorize a State or other government
entity to make an election on behalf of an
eligible individual after a certain period
of time if an initial Trump account has
not yet been created by an authorized
individual, again while complying with
the requirements under the Code and
other applicable laws.
B. How to make the election
Proposed §1.530A-1(c)(2) would pro-
vide that an election by an authorized indi-
vidual to open an initial Trump account
must be made on or before December 31
of the calendar year in which the eligible
individual attains age 17, as required by
section 530A(b)(2)(A).
Proposed §1.530A-1(c)(3) would pro-
vide that the election by an authorized
individual must be made on the form
prescribed by the Secretary (Form 4547,
Trump Account Election(s)) or through an
electronic application or webpage made
available by the Secretary, in accordance
with applicable instructions. The elec-
tion may be made at any time during the
period specified in proposed §1.530A-1(c)
(2), including at the same time that the
authorized individual files such individu-
al’s Federal income tax return. The initial
Trump account election, however, is not
a part of any individual’s tax return and
is independent of the filing of the income
tax return.
Proposed §1.530A-1(c)(4) would pro-
vide that only the first election to open an
initial Trump account processed by the
IRS with respect to an eligible individ-
ual will result in an initial Trump account
being opened for that eligible individual.
Once the first election is processed, no
further election to open an initial Trump
account will be allowed. This proposed
rule is intended to prevent multiple initial
Trump accounts from being opened for
the same eligible individual and conforms
with the section 530A(b)(2)(C) require-
ments that no prior election for that eligi-
ble individual has been made.
C. Responsible party
Section 530A(b)(1)(A)(i) requires that
the Secretary create or organize the ini-
tial Trump account. Because the account
beneficiary of a Trump account does not
initially have legal capacity under appli-
cable law, a responsible party is needed to
take actions on behalf of the account ben-
eficiary in managing the Trump account;
therefore, the Secretary must designate a
responsible party to act on behalf of the
account beneficiary. Proposed §1.530A-
1(d) would provides that, in general
(that is, unless State law or, if the trustee
chooses, the account agreement, provides
otherwise), the responsible party of the
initial Trump account will be the indi-
vidual who makes the election to open
the account. The responsible party could
have the authority to select among eligi-
ble investments (if there is more than one
eligible investment offered), to direct a
transfer to a different trustee pursuant to
a qualified rollover contribution or to an
ABLE account pursuant to a qualified
ABLE rollover contribution, or to select
a successor responsible party. However,
applicable law, including State law, or
the account agreement could limit or
condition the actions that the responsible
party will be able to take on behalf of the
account beneficiary.
The Treasury Department and the IRS
recognize that there may be situations in
which it may be appropriate for the person
who is currently the responsible party of a
Trump account to be replaced, including
when the individual who made the elec-
tion to open the initial Trump account was
not, in fact, an authorized individual. In
these situations, applicable law (includ-
ing State law) or the account agreement
will govern when and how a responsible
party may be removed and replaced. For
example, a legal guardian might be able to
obtain a court appointment under applica-
ble State law to be a responsible party of a
Trump account. Further, to the extent not
inconsistent with State law, the account
agreement might provide procedures

Bulletin No. 2026–13 777 March 23, 2026
under which a responsible party may be
removed and replaced without a court
appointment. For example, to the extent
not inconsistent with applicable law, these
procedures could include who can request
the removal of a responsible party (such as
the account beneficiary’s legal guardian)
and who can be the new responsible party
(such as a corporate trustee, the account
beneficiary’s legal guardian, or another
person who is an authorized individual,
consistent with the ordering rule in pro-
posed §1.530A-1(c)(1)).
III. Reserved Regulations Regarding
Trump Accounts
This notice of proposed rulemaking
reserves §§1.530A-2 through 1.530A-6
for future guidance addressing contribu-
tions, investments, distributions, report-
ing, and other special rules and coordina-
tion with IRA rules.
Proposed Applicability Date
The regulations are proposed to apply
to taxable years beginning on or after Jan-
uary 1, 2026. In accordance with section
7805(b)(2), the Treasury Department and
the IRS intend to publish final regulations
within 18 months of the date of enactment
of section 530A.
Special Analyses
I. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, reducing costs, harmonizing
rules, and promoting flexibility.
The proposed regulations have been
designated by the Office of Management
and Budget’s (OMB’s) Office of Infor-
mation and Regulatory Affairs (OIRA)
as subject to review under Executive
Order 12866 pursuant to the Memoran-
dum of Agreement (MOA, July 4, 2025)
between the Treasury Department and the
OMB regarding review of tax regulations.
OIRA has determined that the proposed
rulemaking is economically significant
under section 3(f)(1) of Executive Order
12866 and subject to review under Exec-
utive Order 12866 and section 1(b) of the
MOA. Accordingly, the proposed regula-
tions have been reviewed by OMB. This
proposed rule is not expected to be consid-
ered a regulatory action under Executive
Order 14192 because it imposes no more
than de minimis costs.
Need for Regulation
The proposed regulations would
explain how to make an election to open
a Trump account under section 530A of
the Internal Revenue Code (Code). The
proposed regulations would define terms
for the purpose of implementing section
530A, clarify who may elect to open an
initial Trump account, explain how to
elect to open an initial Trump account,
and designate a default responsible party
to manage an initial Trump account on
behalf of the account beneficiary.
The Statute and the Proposed Regulations
Public Law 119-21, commonly
referred to as the One, Big, Beautiful Bill
Act, added new sections 530A, 128, and
6434 to the Code. Section 530A describes
Trump accounts, section 128 describes
certain employer contributions to Trump
accounts, and section 6434 describes the
Trump accounts contribution pilot pro-
gram. The proposed regulations provide
guidance on making an election to open an
initial Trump account under section 530A.
Section 530A defines a Trump
account as a traditional individual retire-
ment account (IRA) with some special
rules. Most special rules that distinguish
Trump accounts from other IRAs apply
only during the growth period. The first
day of the growth period is the day the
account is established, and the final day
of the growth period is December 31 of
the calendar year in which the account
beneficiary attains age 17. The rules for
traditional IRAs generally apply after the
growth period. A Trump account may be
established for the benefit of a child prior
to the calendar year in which the child
attains age 18 if the child has been issued
a social security number.
In general, distributions from Trump
accounts are not permitted during the
growth period. The entire balance of a
Trump account may be rolled over in a
direct trustee-to-trustee transfer to a new
Trump account of the account beneficiary.
The entire balance of a Trump account
may be rolled over in a direct trustee-to-
trustee transfer to an ABLE account of the
account beneficiary in the calendar year
the account beneficiary attains age 17.
Investments in a Trump account must
track the returns of a broad index of equi-
ties in primarily U.S. companies for which
regulated futures contracts are traded,
avoid the use of leverage, and avoid
annual fees and expenses above 0.1%.
Trump accounts may receive contri-
butions from nonprofits, governments,
employers, and individuals. In general,
contributions to a Trump account are sub-
ject to an annual limit of $5,000, adjusted
for inflation.
Governments and nonprofits may only
make contributions through the Treasury
Department, and such contributions must
be made in equal amounts to the Trump
accounts of every account beneficiary in
a qualified class. Contributions from gov-
ernments and nonprofits through the Trea-
sury Department do not count towards the
$5,000 annual contribution limit.
Section 128 sets rules for certain
employer contributions to Trump accounts.
Employers may contribute to the Trump
account of an employee or an employee’s
dependent. Section 128 employer contri-
butions to a Trump account are excluded
from the employee’s income, up to an
annual limit of $2,500, adjusted for infla-
tion. Section 128 employer contributions
count towards the $5,000 annual contribu-
tion limit.
Section 6434 describes the Trump
accounts contribution pilot program. In
the pilot program, the Secretary will pay
$1,000 to the Trump accounts of eligi-
ble children. A U.S. citizen born in 2025,
2026, 2027, or 2028 who has been issued
a social security number and for whom no
request for a pilot program contribution
has previously been processed is eligible
for a pilot program contribution. Pilot pro-
gram contributions do not count towards
the $5,000 annual contribution limit.

March 23, 2026 778 Bulletin No. 2026–13
All other contributions to a Trump
account, including contributions from
friends or family members, are non-de-
ductible contributions (they create invest-
ment in the contract (basis)) and count
towards the $5,000 annual contribution
limit.
The proposed regulations would be just
one piece of the implementation of section
530A; the proposed regulations would
reserve the following sections in the Code
of Federal Regulations for future guid-
ance: §§1.530A-2, 1.530A-3, 1.530A-4,
1.530A-5, and 1.530A-6. The proposed
regulations would define the following
terms for the purposes of implementing
section 530A: growth period, IRA, pilot
program contribution, and traditional
IRA. Growth period is a concise term for
the period described repeatedly by the
statute as “the period before the first day
of the calendar year in which the account
beneficiary attains age 18.” An IRA is
an individual retirement account. A pilot
program contribution is a contribution to
a Trump account under section 6434. A
traditional IRA is an individual retirement
account that is not a Roth IRA.
The proposed regulations would clarify
who may elect to open an initial Trump
account. Under the proposed regulations,
an individual who is making a pilot pro-
gram election for an eligible child under
section 6434 must also elect to open an
initial Trump account if no prior elec-
tion was made to open an initial Trump
account.
6
If no individual is making a pilot
program election, then one of the follow-
ing individuals may elect to open an initial
Trump account: a legal guardian, a parent,
an adult sibling, or a grandparent, in that
order of priority.
The proposed regulations would
explain how to elect to open an initial
Trump account. Under the proposed reg-
ulations, the election to open an initial
Trump account must be made on a form
prescribed by the Secretary (Form 4547,
Trump Account Election(s)) or through an
electronic application or webpage made
available by the Secretary.
The proposed regulations would desig-
nate a default responsible party to manage
an initial Trump account on behalf of the
account beneficiary while the account ben-
eficiary does not have legal capacity. Under
the proposed regulations, in general, the
default responsible party for an initial Trump
account is the individual who makes the
election to open an initial Trump account.
Baseline
The Treasury Department and the IRS
have assessed the benefits and costs of the
proposed regulations relative to a no-ac-
tion baseline reflecting anticipated Fed-
eral income tax-related behavior in the
absence of these proposed regulations.
Affected Entities and Taxpayers
The proposed regulations are expected
to affect 73 million children in 44 million
families.
Economic Effects of the Proposed
Regulations
Election to open an initial Trump
account
In general, the regulations would
provide clarity to the 44 million fam-
ilies with children under age 18 who
may be eligible to open an initial
Trump account. The regulations would
be responsive to the statutory require-
ment that the election to open an initial
Trump account be made in a time and
manner prescribed by the Secretary.
These regulations would clarify who
may open an initial Trump account for
the minor child and in what order of
priority, and who may be the responsi-
ble party for the initial Trump account
while the child is still a minor. The stat-
ute does not prescribe a time or manner
to make the election to open an initial
Trump account; the statute requires
the Secretary to prescribe the time and
manner of an election. Providing clar-
ity about the election to open an initial
Trump account would result in initial
Trump accounts opening for some chil-
dren under age 18 for whom an account
would have been opened later or not at
all. Those children would benefit from
receiving a qualified general contri-
bution or a contribution from a family
member that they may have missed had
the account been opened later or not at
all. The Treasury Department and the
IRS used historical returns for a broad
index of U.S. equities to quantify the
benefit at age 18 of $1,000 invested at
various ages.
7
Among birth cohorts from
1926 to 2006, Table 1 shows that while
an earlier investment allows for more
growth, there are still typically benefits
at age 18 from making an investment
even at age 17.
6
A pilot program election under section 6434 is a request for a pilot program contribution, which is $1,000 paid to the Trump account of a child born in 2025 through 2028. A pilot program
election is distinct from an election to open an initial Trump account under section 530A.
7
Kenneth R. French Data Library. https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html

Bulletin No. 2026–13 779 March 23, 2026
Table 1
Value at age 18 of investment in broad index of US equities
Investment scenario10th percentile50th percentile90th percentile
$1,000 at birth2,9806,18013,800
$1,000 at age 12,8605,69011,990
$1,000 at age 22,6804,92010,040
$1,000 at age 32,4004,7509,030
$1,000 at age 42,1504,2608,040
$1,000 at age 52,0203,9907,110
$1,000 at age 61,7703,6206,350
$1,000 at age 71,6603,2805,380
$1,000 at age 81,6803,1504,670
$1,000 at age 91,4802,7404,110
$1,000 at age 101,3502,4603,560
$1,000 at age 111,3402,3503,040
$1,000 at age 121,1802,0502,720
$1,000 at age 131,0501,8902,390
$1,000 at age 141,0201,6302,060
$1,000 at age 159901,4001,810
$1,000 at age 169701,2401,590
$1,000 at age 179001,1601,330
Notes: Percentiles at age 18 are calculated based on birth cohorts 1926 through 2006. For a particular birth cohort, the value at age 18
of one dollar invested at birth is calculated as the gross 18-year market return for a broad index of US equities.
Who may open a Trump account
The proposed regulations would clarify
who may elect to open an initial Trump
account. The proposed regulations would
allow the following individuals to open an
initial Trump account: an individual mak-
ing a pilot program election for an eligible
child under section 6434, a legal guardian,
a parent, an adult sibling, or a grandpar-
ent. An alternative would be to allow only
an individual for whom the eligible indi-
vidual is a dependent under the Code to
make the election.
This choice and several others would
provide clarity about the election to open
an initial Trump account, which may
allow the account beneficiary to receive
a contribution that they otherwise would
have missed. See Table 1 for the value at
age 18 of a $1,000 investment at a range
of ages in a range of historical market con-
ditions.
Although section 530A contemplates an
election to open an initial Trump account
made by the Secretary, the Treasury Depart-
ment and IRS have determined that the
Treasury Department would generally be
unable to perform necessary actions to open
an account (1) without a statutory exception
to the disclosure prohibition in section 6103
and (2) due to additional legal constraints
(including federal and state banking, secu-
rities, and anti-money laundering laws).
For these reasons, the Secretary making the
election to open an initial Trump account
was not an alternative within the discre-
tion of the Treasury Department and IRS.
If there were a legal path for the Treasury
Department to open initial Trump accounts,
then there would still be substantial admin-
istrative challenges to consider.
Ordering rule
The proposed regulations would set an
ordering rule among individuals autho-
rized to elect to open an initial Trump
account. The proposed regulations would
prioritize an individual making a pilot
program election. If no one is making a
pilot program election, then the proposed
regulations would use the same order-
ing rule as is used in section 529A: legal
guardian, parent, adult sibling, grandpar-
ent. An alternative would be to decline
to specify an ordering rule. By priori-
tizing an individual making a pilot pro-
gram election, the proposed regulations
would streamline the process of opening
an initial Trump account and making a
pilot program election. By specifying the
ordering rule used in section 529A in other
cases, the proposed regulations would use
an established system for guiding taxpay-
ers and ordering elections.
This choice and several others would
provide clarity about the election to open
an initial Trump account, which may
allow the account beneficiary to receive
a contribution that they otherwise would
have missed. See Table 1 for the value at
age 18 of a $1,000 investment at a range
of ages in a range of historical market con-
ditions.

March 23, 2026 780 Bulletin No. 2026–13
Responsible party
The proposed regulations would desig-
nate a default responsible party to manage
an initial Trump account on behalf of the
account beneficiary. Under the proposed
regulations, the default responsible party
for an initial Trump account would be the
individual who makes the election to open
an initial Trump account. One alternative
would be for the legal guardian to be the
responsible party. Another alternative would
be for the individual making the initial
Trump account election to specify a respon-
sible party. Designating the individual who
makes the initial Trump account election as
the default responsible party simplifies the
process and avoids confusion from involv-
ing multiple individuals in the process of
opening and managing the account.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) generally requires
that a Federal agency obtain the approval
of the Office of Management and Bud-
get (OMB) before collecting information
from the public, whether such collection
of information is mandatory, voluntary,
or required to obtain or retain a benefit.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number. The information collec-
tion in proposed §1.530A-1(c) is used to
open an initial Trump account for eligible
individuals. The burden associated with
the collection of information in these pro-
posed regulations are included in Form
4547 and its instructions and approved
under OMB control number 1545-2336
in accordance with PRA procedures under
5 C.F.R. 1320.10.
III. Regulatory Flexibility Act
The Secretary hereby certifies that
these proposed regulations would not
have a significant economic impact on a
substantial number of small entities pur-
suant to the Regulatory Flexibility Act
(5 U.S.C. chapter 6). The proposed rules
would not impose any requirement or obli-
gation upon small entities. The proposed
rules affect individuals and the trustee of
the initial Trump accounts, which is not a
small entity. Because the regulation does
not impose any requirement or obligation
on small entities, a Regulatory Flexibility
Act analysis is not required.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result in
expenditures in any one year by a State,
local, or Tribal government, in the aggre-
gate, or by the private sector, of $100
million in 1995 dollars, updated annually
for inflation. These proposed regulations
do not include any Federal mandate that
may result in expenditures by State, local,
or Tribal governments, or by the private
sector in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local gov-
ernments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Execu-
tive order. These proposed regulations do
not have federalism implications and do
not impose substantial direct compliance
costs on State and local governments or
preempt State law within the meaning of
the Executive order.
VI. Small Business Administration
Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking
will be submitted to the Chief Counsel for
the Office of Advocacy of the Small Busi-
ness Administration for comment on its
impact on small business.
Comments and Request for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consider-
ation will be given to comments regarding
the notice of proposed rulemaking that are
submitted timely to the IRS as prescribed
in this preamble under the ADDRESSES
section. The Treasury Department and
the IRS request comments on all aspects
of the proposed regulations. Any com-
ments submitted will be made available
at https://www.regulations.gov or upon
request. A public hearing will be sched-
uled if requested in writing by any person
who timely submits electronic or written
comments. Requests for a public hearing
are also encouraged to be made electron-
ically. If a public hearing is scheduled,
notice of the date and time for the public
hearing will be published in the Federal
Register.
Statement of Availability of IRS
Documents
IRS revenue procedures, revenue rul-
ings, notices, and other guidance cited
in this document are published in the
Internal Revenue Bulletin (or Cumula-
tive Bulletin) and are available from the
Superintendent of Documents, U.S. Gov-
ernment Publishing Office, Washington,
DC 20402, or by visiting the IRS website
at http://www.irs.gov.
Drafting Information
The principal author of these pro-
posed regulations is the Office of Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes) at (202) 317-4148. Personnel from
the Treasury Department and the IRS also
participated in its development.
Lists of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and IRS propose to amend 26 CFR part 1
as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an entry

Bulletin No. 2026–13 781 March 23, 2026
in numerical order for §1.530A-1 to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 1.530A-1 also issued under 26
U.S.C. 408(a)(2), 530A(a), (b)(1)(A)(i),
(b)(1)(B), and (b)(2)(C).
* * * * *
Par. 2. Sections 1.530A-1 through
1.530A-6 are added to read as follows:
§1.530A-1 Trump accounts - General
requirements and election to open an
account.
(a) In general. This section provides
general requirements regarding Trump
accounts and rules for making an election
to open an initial Trump account.
(b) Trump accounts--(1) In general. A
Trump account is a type of traditional IRA
described in section 530A(b)(1) for the
exclusive benefit of an eligible individ-
ual and, after the death of the individual,
his or her beneficiaries. A Trump account
is subject to special rules that are differ-
ent from the rules for other traditional
IRAs, most of which apply only during
the growth period. Additionally, a Trump
account cannot be a SIMPLE IRA under
section 408(p) and cannot accept contri-
butions from an employer’s simplified
employee pension (SEP) arrangement
under section 408(k). See paragraph (b)
(4) of this section for definitions applica-
ble for this section.
(2) Requirements for a Trump account.
A Trump account must meet the require-
ments stated in this paragraph (b)(2).
(i) Types of Trump accounts. A Trump
account must be either an initial Trump
account or a rollover Trump account.
(A) Initial Trump account. An individ-
ual’s initial Trump account is the individ-
ual’s first Trump account, which must be
created or organized by the Secretary pur-
suant to an election that is made in accor-
dance with the rules set forth in paragraph
(c) of this section.
(B) Rollover Trump account. After
an initial Trump account is established,
a rollover Trump account may be estab-
lished for the account beneficiary during
his or her growth period. A rollover
Trump account must first be funded by
a qualified rollover contribution from
the account beneficiary’s existing Trump
account before receiving any other contri-
bution, and an individual may have only
one Trump account containing funds at a
time. See section 530A(e) for more details
regarding qualified rollover contributions.
(ii) Written governing instrument--(A)
In general. The written governing instru-
ment establishing a Trump account must
generally meet the requirements of sec-
tion 408(a)(1) through (6), which apply
to other IRAs, as well as the requirements
of section 530A(b)(1)(C)(i) through (iii),
which apply only to Trump accounts. The
written governing instrument generally
should reflect both the rules that apply
during the growth period and the rules that
apply after the growth period.
(B) During the growth period. During
the growth period, a written governing
instrument establishing a Trump account
must generally restrict the timing and
annual amount of contributions to the
Trump account in accordance with sec-
tion 530A(b)(1)(C)(i), prohibit distribu-
tions from the Trump account in accor-
dance with section 530A(b)(1)(C)(ii),
and require that the funds in the Trump
account be invested only in an eligible
investment in accordance with section
530A(b)(1)(C)(iii). Additionally, during
the growth period, the written governing
instrument establishing a Trump account
must meet the requirements of section
408(a)(1) through (6), to the extent not
inconsistent with section 530A. For
example, during the growth period, the
annual limit on the amount of contribu-
tions is governed by section 530A(c)(2)
rather than section 408(a)(1). In addition,
if the account beneficiary dies during the
growth period, section 530A(d)(6) applies
rather than the required minimum dis-
tribution rules of section 408(a)(6). In
contrast, the other requirements of sec-
tion 408 apply both during and after the
growth period, such as the requirement of
section 408(a)(1) that contributions (other
than rollovers, including qualified rollover
contributions) must be made in cash, and
the other requirements of section 408(a)
(2) through (5). For example, pursuant to
section 408(a)(2), the trustee of a Trump
account must be a bank (as defined in sec-
tion 408(n)) or a nonbank trustee approved
by the IRS.
(C) After the growth period. A writ-
ten governing instrument establishing a
Trump account must meet the require-
ments of section 408(a)(1) through (6)
after the growth period, except as provided
in section 530A. For example, after the
growth period, the contribution limits of
section 408(a)(1) generally apply, except
that the section 530A(h)(1) prohibition
against a Trump account receiving con-
tributions under a SEP arrangement under
section 408(k) or a SIMPLE IRA plan
under section 408(p) continues to apply to
a Trump account after the growth period.
(iii) Automatic approval for certain
nonbank trustees. For purposes of sec-
tion 530A, any person approved by the
IRS as of December 31, 2025, to be a
nonbank trustee of an IRA is automati-
cally approved to be a nonbank trustee
of a Trump account. Any person who is
automatically approved to be a nonbank
trustee of a Trump account and actually
becomes a Trump account trustee must
notify the IRS, in writing, of this fact. See
§1.408-2(e)(6)(iv).
(iv) Designation as a Trump account.
The written governing instrument estab-
lishing a Trump account must clearly
designate the IRA as a Trump account at
the time of establishment. Accordingly, an
existing account (such as an IRA that is
not a Trump account) cannot be amended
to become a Trump account. In addition,
a Trump account must be titled to clearly
identify the account as a Trump account
for the benefit of the account beneficiary.
(3) Differences from other traditional
IRAs--(i) During the growth period.
During the growth period, there are spe-
cial rules for Trump accounts with respect
to:
(A) Contributions (see section
530A(c));
(B) Investments (see section 530A(b)
(3));
(C) Distributions (see section 530A(d));
(D) Reporting (see section 530A(i));
and
(E) Coordination with IRA rules (see
section 530A(h)).
(ii) After the growth period. After the
growth period (that is, starting January
1
st
of the year in which the account ben-
eficiary attains age 18), the rules under
section 408 that apply to other traditional
IRAs are generally applicable to Trump
accounts, except as provided in section
530A(h).

March 23, 2026 782 Bulletin No. 2026–13
(4) Definitions. For purposes of section
530A and the regulations thereunder, the
following definitions apply--
(i) Account beneficiary. The term
account beneficiary means the individual
for whose benefit a Trump account was
established.
(ii) Authorized individual. The term
authorized individual means the individ-
ual as described in paragraph (c)(1)(i) of
this section.
(iii) Eligible individual. The term eligi-
ble individual means any individual—
(A) Who has not attained age 18 before
the end of the calendar year in which an
election under paragraph (c) of this sec-
tion is made;
(B) For whom a social security number
(within the meaning of section 24(h)(7))
has been issued before the date on which
an election under paragraph (c) of this sec-
tion is made; and
(C) For whom an election is made
under paragraph (c) of this section.
(iv) Growth period. For any individ-
ual with a calendar year taxable year, the
term growth period means, with respect
to an account beneficiary, the period that
begins when the initial Trump account is
established and ends on December 31 of
the calendar year in which the account
beneficiary attains age 17. For exam-
ple, a child born on October 1, 2025,
would attain age 17 on October 1, 2042,
and therefore the last day of the growth
period with respect to the child would be
December 31, 2042.
(v) IRA. The term IRA means an indi-
vidual retirement account under sec-
tion 408(a) and includes a custodial
account that is treated as a trust pursuant
to section 408(h). Accordingly, the term
IRA does not include an individual retire-
ment annuity under section 408(b).
(vi) Pilot program contribution. The
term pilot program contribution means a
$1,000 contribution to a Trump account
made by the Secretary upon the process-
ing of an election for the Trump accounts
contribution pilot program under section
6434.
(vii) Qualified rollover contribution.
The term qualified rollover contribution
means a direct trustee-to-trustee transfer
of an account beneficiary’s entire Trump
account balance to a rollover Trump
account for the same account benefi-
ciary.
(viii) Traditional IRA. The term tradi-
tional IRA means an IRA that is not a Roth
IRA under section 408A.
(5) Application of the birthday rule.
For purposes of section 530A, an individ-
ual attains an age on his or her birthday.
For example, a child who is born on Jan-
uary 1, 2009, attains age 18 on January 1,
2027.
(c) Election to open an initial Trump
account--(1) Who can make the election.
An election to open an initial Trump
account for an eligible individual may be
made by:
(i) An authorized individual, if no
prior election to open an initial Trump
account has been made for the eligible
individual by the Secretary under para-
graph (c)(1)(ii) of this section. For this
purpose, the authorized individual with
respect to an eligible individual is deter-
mined as follows--
(A) If an election under section 6434
for a pilot program contribution with
respect to the eligible individual is being
made at the same time as the election
to open the initial Trump account for
the eligible individual, then the autho-
rized individual is the individual who is
authorized to make (and is making) the
election under section 6434 for a pilot
program contribution (the pilot pro-
gram-electing individual). By making
the election, the authorized individual is
representing, under penalties of perjury,
that he or she is the pilot program-elect-
ing individual; or
(B) If an election under section 6434
for a pilot program contribution is not
being made at the same time as the elec-
tion to open the initial Trump account,
then the authorized individual is a legal
guardian, parent, adult sibling, or grand-
parent of the eligible individual, in that
order of priority.

If multiple individuals
have the same highest level of priority
and no prior election has been made for
the eligible individual, then any individual
with that level of priority may make the
election. For example, if there is no legal
guardian, either parent of an eligible indi-
vidual may make this election. By making
the election, the authorized individual is
representing, under penalties of perjury,
that he or she is authorized to open the
initial Trump account for the eligible indi-
vidual and that there is no one else with a
higher level of priority who is available to
make the election; or
(ii) The Secretary, if the Secretary
determines (based on information avail-
able to the Secretary from tax returns or
otherwise) that the individual has met
the other requirements to be an eligible
individual, no prior election to open an
initial Trump account has been made for
the individual by an authorized individual
under paragraph (c)(1)(i) of this section,
and an election was made by an individ-
ual who was not an authorized individual
at the time that the election was made. In
such instance, the Secretary is deemed to
have made the election to open the initial
Trump account and the Trump account
that was opened based on an election by
an individual who was not an authorized
individual will not cease to be a Trump
account.
(2) Time to make the election. An elec-
tion to open an initial Trump account must
be made (if at all) on or before December
31 of the calendar year in which the eligi-
ble individual attains age 17.
(3) Manner of making the election.
The election by an authorized individual
to open an initial Trump account must
be made on the form prescribed by the
Secretary or through an electronic appli-
cation or webpage made available by the
Secretary, in accordance with applicable
instructions. No initial Trump account
will be opened based on an election by
an authorized individual unless the autho-
rized individual makes the election in
such manner.
(4) Resolving multiple elections for an
eligible individual. Only the first election
to open an initial Trump account that is
processed by the Secretary with respect
to an eligible individual will result in the
opening of an initial Trump account for
the eligible individual. Once the Secre-
tary processes the first election to open
an initial Trump account, no further elec-
tions to open an initial Trump account
for such eligible individual will be pro-
cessed.
(d) Responsible party for the initial
Trump account. In general, the individual
who makes the election to open an initial

Bulletin No. 2026–13 783 March 23, 2026
Trump account will be the responsible
party of the initial Trump account when
the account is established. Unless other-
wise provided under the account agree-
ment or applicable law, the responsible
party will have the authority, while the
account beneficiary does not have legal
capacity, to select among eligible invest-
ments (if more than one eligible invest-
ment is offered), direct a transfer for a
qualified rollover contribution, direct a
transfer for a qualified ABLE rollover
contribution (see section 530A(d)(4)), or
select a successor responsible party for the
account.
(e) Applicability date. This section
applies to taxable years beginning on or
after January 1, 2026.
§§1.530A-2 through 1.530A-6
[Reserved]
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register March
6, 2026, 8:45 a.m., and published in the issue of the
Federal Register for March 9, 2026, 91 FR 11194)

Bulletin No. 2026–13 i March 23, 2026
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

March 23, 2026 ii Bulletin No. 2026–13
Numerical Finding List
1
Bulletin 2026–13
Announcements:
2026-1, 2026-04 I.R.B. 402
2026-2, 2026-05 I.R.B. 447
2026-3, 2026-06 I.R.B. 518
2026-4, 2026-06 I.R.B. 533
2026-5, 2026-07 I.R.B. 540
2026-6, 2026-10 I.R.B. 634
2026-7, 2026-11 I.R.B. 697
Notices:
2026-2, 2026-02 I.R.B. 304
2026-3, 2026-02 I.R.B. 307
2026-5, 2026-02 I.R.B. 309
2026-6, 2026-02 I.R.B. 313
2026-1, 2026-04 I.R.B. 365
2026-8, 2026-04 I.R.B. 368
2026-10, 2026-04 I.R.B. 378
2026-11, 2026-06 I.R.B. 491
2026-12, 2026-06 I.R.B. 496
2026-13, 2026-06 I.R.B. 499
2026-9, 2026-07 I.R.B. 534
2026-7, 2026-11 I.R.B. 637
2026-14, 2026-11 I.R.B. 654
2026-15, 2026-11 I.R.B. 658
2026-16, 2026-11 I.R.B. 685
2026-17, 2026-12 I.R.B. 698
2026-4, 2026-13 I.R.B. \726
Proposed Regulations:
REG-101952-24, 2026-03 I.R.B. 345
REG-110519-25, 2026-03 I.R.B. 353
REG-132251-11; REG-134219-08,
2026-03 I.R.B. 358
REG-103430-24, 2026-05 I.R.B. 447
REG-112829-25, 2026-05 I.R.B. 452
REG-113515-25, 2026-05 I.R.B. 455
REG-121244-23, 2026-09 I.R.B. 579
REG-105064-25, 2026-13 I.R.B. 735
REG-108921-25, 2026-13 I.R.B. 756
REG-117002-25, 2026-13 I.R.B. 761
REG-117270-25, 2026-13 I.R.B. 772
Revenue Procedures:
2026-1, 2026-01 I.R.B. 1
2026-2, 2026-01 I.R.B. 119
2026-3, 2026-01 I.R.B. 143
2026-4, 2026-01 I.R.B. 160
2026-5, 2026-01 I.R.B. 258
2026-6, 2026-02 I.R.B. 314
2026-7, 2026-02 I.R.B. 316
2026-8, 2026-04 I.R.B. 380
2026-9, 2026-04 I.R.B. 393
Revenue Procedures:—Continued
2026-10, 2026-04 I.R.B. 394
2026-12, 2026-07 I.R.B. 535
2026-13, 2026-09 I.R.B. 563
2026-11, 2026-12 I.R.B. 707
2026-15, 2026-13 I.R.B. 729
2026-16, 2026-13 I.R.B. 733
Revenue Rulings:
2026-1, 2026-02 I.R.B. 299
2026-2, 2026-03 I.R.B. 342
2026-3, 2026-06 I.R.B. 485
2026-4, 2026-06 I.R.B. 487
2026-5, 2026-08 I.R.B. 542
2026-6, 2026-11 I.R.B. 635
Treasury Decisions:
10042, 2026-03 I.R.B. 320
10041, 2026-04 I.R.B. 360
10039, 2026-05 I.R.B. 403
10040, 2026-05 I.R.B. 416
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

Bulletin No. 2026–13 iii March 23, 2026
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2026–13
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

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