SECTION 4. TRANSITION PERIOD

FOR ENFORCEMENT AND ADMINISTRATION OF BACKUP WITHHOLDING WITH RESPECT TO CALENDAR YEAR 2024

For calendar year 2024, the IRS will not assert penalties under section 6651 or

6656 with respect to a TPSO’s failure to withhold and pay backup withholding tax during the calendar year.

TPSOs that have performed backup withholding under section 3406(a) for a payee during calendar year 2024 must file a Form 945 and a Form 1099-K with the IRS and furnish a copy to the payee.

For calendar year 2025 and after, the IRS will assert penalties under section 6651 or 6656 with respect to a TPSO’s failure to withhold and pay backup withholding tax.