Commerce, FCC, and IRS Issue Trade, Lifeline, and Tax Withholding Actions

IRS Finalizes Backup Withholding Rules for Third-Party Payment Networks

The Treasury Department and the IRS have issued final regulations governing backup withholding on reportable payments with respect to third-party network transactions, effective August 10, 2026. The regulations amend 26 CFR Part 31 under section 3406 of the Internal Revenue Code, and reflect statutory changes made to section 3406(b) by section 70432 of Public Law 119-21, commonly known as the One, Big, Beautiful Bill Act (OBBBA), enacted July 4, 2025.

The document explains that the statutory changes apply to calendar years beginning after December 31, 2024, and the final regulations mirror that applicability date. The Treasury Department and the IRS state that the final regulations remove provisions from the existing regulations that conflict with section 3406 as amended by the OBBBA and implement the changes Congress prescribed. The agencies explain this approach is intended to prevent taxpayer confusion that might arise from a conflict between the statutory text and the text of the regulations. A notice of proposed rulemaking (REG-112829-25) was published on January 9, 2026, and the Treasury Department and IRS received eight comments in response. After consideration, the proposed regulations were adopted without change.

One commenter suggested the changes take effect prospectively only; the final regulations do not adopt that comment, citing the congressionally prescribed effective date. Another commenter requested the preamble include a compliance-and-enforcement-implications section, and the agencies responded by clarifying — within the preamble — that the taxability of payments and the reportability of income on a tax return are not determined by whether a Form 1099-K is received, or by whether backup withholding is required with respect to a third-party network transaction.

FCC and USAC Launch Lifeline Eligibility Matching Program with Iowa

The Federal Communications Commission (FCC) and the Universal Service Administrative Company (USAC) are establishing a new computer matching program with the Iowa Department of Health and Human Services to verify the eligibility of applicants and subscribers to the Lifeline program. Written comments are due on or before September 9, 2026, and the matching program will both commence on September 9, 2026, and conclude after 18 months.

The Lifeline program, as the document describes it, provides support for discounted broadband and voice services to low-income consumers and is administered by USAC under FCC direction. Consumers qualify through proof of income or participation in qualifying programs, including Medicaid, the Supplemental Nutritional Assistance Program (SNAP), Federal Public Housing Assistance, Supplemental Security Income (SSI), Veterans and Survivors Pension Benefit, or various Tribal-specific federal assistance programs. The authority to conduct the matching program is grounded in 47 U.S.C. 254(a) through (c), and (j).

The document traces the matching program's origins to a Report and Order adopted on March 31, 2016, in which the Commission ordered USAC to create a National Lifeline Eligibility Verifier (National Verifier), including the National Lifeline Eligibility Database (LED), that would match data about Lifeline applicants and subscribers with other data sources. The Commission found at that time that the National Verifier would reduce compliance costs for Lifeline service providers, improve service for subscribers, and reduce waste, fraud, and abuse in the program.

Under the new Iowa agreement, the National Verifier will transfer an applicant's last four digits of their Social Security Number, date of birth, and first and last name to the Iowa Department of Health and Human Services, which will respond with a "yes" or "no" indicating whether the individual is enrolled in SNAP as administered by that agency. The categories of individuals covered include those who have applied for or are receiving Lifeline, individuals who enable another household member to qualify, minors whose status qualifies a parent or guardian, and those who have previously received Lifeline.

Commerce Initiates June-Anniversary Antidumping and Countervailing Duty Reviews

The Commerce Department's International Trade Administration is initiating administrative reviews of various antidumping duty (AD) and countervailing duty (CVD) orders with June anniversary dates, applicable as of August 10, 2026. The reviews are initiated pursuant to timely requests received in accordance with 19 CFR 351.213(b).

The document sets out a detailed procedural timeline governing the reviews. Where Commerce limits the number of respondents for individual examination, it intends to select respondents based either on U.S. Customs and Border Protection (CBP) data for U.S. imports during the period of review, or on quantity-and-value (Q&V) questionnaires requesting sales, shipment, or export data. Commerce states it intends to place CBP or Q&V data on the record within five days of publication of the initiation notice, and to make its respondent selection decision within 35 days of that publication. Parties may submit comments on the CBP or Q&V data within seven days of placement on the record, and rebuttal comments within five days after the deadline for initial comments.

The notice also establishes collapsing policy: Commerce will not conduct collapsing analyses at the respondent selection phase unless a determination to collapse certain companies was made in a previous segment of the proceeding. For "no sales" situations, a producer or exporter with no exports, sales, or entries during the period of review may notify Commerce within 30 days of publication. Finally, pursuant to 19 CFR 351.213(d)(1), a party that requested a review may withdraw that request within 90 days of the date of publication of the initiation notice, with case-by-case extensions possible at Commerce's discretion.

What to Watch

• August 10, 2026: IRS backup withholding final regulations take effect; Commerce antidumping/CVD initiation notice applicable date.
• Within 5 days of August 10, 2026: Commerce intends to place CBP or Q&V data on the record of initiated reviews.
• Within 30 days of August 10, 2026: Deadline for producers or exporters with no sales during the period of review to notify Commerce.
• Within 35 days of August 10, 2026: Commerce intends to make respondent selection decisions for initiated reviews.
• Within 90 days of August 10, 2026: Deadline for parties to withdraw requests for administrative review under 19 CFR 351.213(d)(1).
• September 9, 2026: Written comments on the FCC/USAC–Iowa Lifeline matching program due; program also commences on this date.

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