Part III - Administrative, Procedural, and Miscellaneous Request for Comments on Electronic Furnishing of Certain Payee Statements

Part III - Administrative, Procedural, and Miscellaneous

Request for Comments on Electronic Furnishing of Certain Payee Statements

Notice 2026-4

SECTION 1. PURPOSE

The Department of the Treasury (Treasury Department) and the Internal

Revenue Service (IRS) 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 Treasury Department and

the IRS should modify the electronic furnishing requirements applicable to any persons

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 thereunder1 generally require third parties with information about

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).

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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 certain

identifying information about such persons, including a taxpayer identification 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 requirements are important to voluntary tax

compliance 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

) to each person (payee) about whom an

information return was filed showing the information that was reported to the IRS.

These information reporting requirements are important to voluntary tax

compliance 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 information returns also allow the IRS to compare the

information reported to the IRS with tax returns filed by taxpayers whose identifying

number is shown on the information 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 information returns and the failure to furnish timely correct

payee statements. Section 6724(d)(1) defines an information return for this purpose by

cross-referencing various other sections of the Code that require the filing of information

returns. Similarly, 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 furnished under subpart B of part III of subchapter

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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)

f

any payee statement required to be furnished under subpart B of part III of subchapter

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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 statements

of this kind may be provided electronically only if the payee provides consent 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 consumer

consent and a demonstration that the consumer can receive materials electronically

before a person legally required to provide written disclosures can deliver such

disclosures to that consumer electronically. Because payee statements required under

Code provisions are legally required written disclosures, payee statements 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 regulations under section 6051. See TD 8942, 66 FR

10191 and REG-107186-00, 66 FR 10247 (February 14, 2001). The temporary and

proposed regulations mirrored each other and generally required employers 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

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retained the same notice and consent requirements. See TD 9114, 69 FR 7567

(February 18, 2004)

d generally required employers 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

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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-recipients 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 regulations 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 electronically in a manner that reasonably demonstrates 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 take certain actions, including

obtaining from the recipient a new electronic consent 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.

it will be furnished to the

recipient. Under § 31.6051-1(j)(2)(iii), a furnisher must take certain actions, including

obtaining from the recipient a new electronic consent 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 statement electronically, the furnisher must provide a

clear and conspicuous statement to the recipient containing certain disclosures,

including about the scope and duration of consent, how to withdraw consent, and a

description of the hardware and software required to access, print, and retain the Form

W-2.

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(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

procedure relating to substitute statements is generally updated annually and is also

reproduced as IRS Publication 1179, General Rules and Specifications for Substitute

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-(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, private delivery service, electronic mail, or in person

and must provide instructions to the recipient on how to access and print the statement

and Publication 1179 published July 21, 2025.

(4) Notice. Under § 31.6051-(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, private 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 furnisher 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 statement, the

furnisher must furnish the corrected statement electronically. If a furnisher 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 generally must maintain access to corrected statements that are

posted on the website through October 15 of the year following the calendar year to

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which the statements relate or for 90 days after that posting, whichever is later.

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 generally must maintain access to corrected statements that are

posted on the website through October 15 of the year following the calendar year to

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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 recipient withdraws the consent and the withdrawal

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 withdrawal takes effect

before the statement is furnished electronically, a paper statement must be furnished.

.03 Rules Permitting Electronic Furnishing for Other Payee Statements

Section 4.6 of Publication 1179 provides 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 recipient, the furnisher may

furnish the statement electronically instead of on paper if the furnisher complies with the

provisions in Sections 4.6.2 and 4.6.3 of Publication 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

statements (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 recipient on one document

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

statements (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 recipient on one document.

Section 1.6045-1(k)(3)(i) permits brokers to include information reported to the

IRS on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, on a

payee statement that is combined with additional payee statements reflecting

information reported to the IRS on certain other forms (Form 1099-B composite

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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 transactions, dividends, interest, original issue discount,

patronage dividends, and royalties. 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 dividends and interest)

•

Form 1099-OID, Original Issue Discount

•

Form 1099-PATR, Taxable Distributions Received From Cooperatives

•

Form 1099-S, Proceeds from Real Estate Transactions (only for royalties)

A broker may not include any other payee statements reflecting information

reported to the IRS on other Forms 1099 on a Form 1099-B c

y 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

•

Form 1099-S, Proceeds from Real Estate Transactions (only for royalties)

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 Electronic Furnishing of 1099-DA Statements

Section 6045 and the regulations thereunder generally require brokers to file

information returns with respect to sales of digital assets and certain other transactions

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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 transactions 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

recognize that furnishing payee statements relating to digital asset transactions in paper

form could impose potentially significant compliance burdens on brokers without

providing corresponding benefits to customers.

To that end, the Treasury Department and the IRS are publishing proposed

regulations in the Federal Register (XX FR XXXX) that would provide brokers required

to furnish payee statements to their customers 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

the IRS are publishing proposed

regulations in the Federal Register (XX FR XXXX) that would provide brokers required

to furnish payee statements to their customers 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 current 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 Statements Includable on Form 1099-B Composite

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 consent) to

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receiving the statement electronically 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 increasingly able to

access electronically furnished payee statements. 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%).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 facility with using a

smartphone or computer is limited and who prefer to receive important documents in

paper form

y they use the internet (95%), have a smartphone (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 facility with using a

smartphone or computer is limited and who prefer to receive important documents in

paper form.

The Treasury Department and the IRS are considering modifying current

guidance setting forth the requirements that must be met before brokers can

electronically furnish 1099-B statements and other payee statements that can be

included on Form 1099-B composite statements. Accordingly, this notice requests

comments 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 recipients are able to access the payee

statements.

In particular, the Treasury Department and the IRS invite comments on how

customers who do not communicate with their brokers solely through electronic means

would be able to access these electronically furnished payee statements. In addition,

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-technology-and-home-

broadband/ (accessed March 4, 2026).

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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

bile-technology-and-home-

broadband/ (accessed March 4, 2026).

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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 statements provided in

electronic form, potentially including elderly customers or persons 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 Department and the IRS

are aware some customers 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

rtment and the IRS

are aware some customers 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 filing information returns (for example, payers

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and withholding agents) to electronically 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 comfort with electronic payee

statements or a preference for payee statements in paper form, and any issues filers

have experienced 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 statements on any issues they have encountered receiving these payee

statements in either paper or electronic form

paper form, and any issues filers

have experienced 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 statements on any issues they have encountered receiving these payee

statements in either paper or electronic form. Comments 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

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.

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maintaining consent to provide payee statements 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 specifically

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 statements.

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 comments

should include a reference to Notice 2026-4. Comments may be submitted in one of two

ways:

of payee statements.

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 comments

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

regulations.gov homepage to find this notice and submit comments).

(2)

Send paper submissions to: Internal Revenue Service, CC:PA:01:PR

(Notice 2026-4), Room 5503, P.O. Ben Franklin Station, Washington, DC 20044.

All commenters are strongly encouraged to submit comments electronically. The

Treasury Department and the IRS will publish for public availability any comment

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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 number).