# Notice 2026-4: Part III - Administrative, Procedural, and Miscellaneous Request for Comments on Electronic Furnishing of Certain Payee Statements

> Federal · IRS notices · In force

URL: https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2026_4

## Section

- **Citation:** Notice 2026-4
- **Heading:** Part III - Administrative, Procedural, and Miscellaneous Request for Comments on Electronic Furnishing of Certain Payee Statements
- **Jurisdiction:** Federal
- **Kind:** IRS notices
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Internal Revenue Bulletin / IRB 2026 / Notice / Notice 2026-4

## Text

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).
2

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
3

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
3

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
4

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
4

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.
5

(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
6

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
6

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
7

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
8

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
9

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).
10

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).
10

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
11

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.
12

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
13

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).

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2026_4. Check the current official text before relying on it. Not legal advice.