Navigating the US regulatory landscape has become significantly more complex for international sellers this month. As we move into the second half of 2026, three major shifts in IRS and CBP policy are fundamentally changing how non-US businesses maintain compliance. From a new digital registration system for foreign filers to the formal suspension of de minimis exemptions for certain shipments, these updates require your immediate attention to avoid shipping delays and IRS penalties.
If you are a UK Limited Company, an EU-based brand, or a digital business in Canada or Australia selling into the United States, these changes impact your daily operations. At Sterlinx Global, we manage the heavy lifting of compliance for you, but staying informed is the first step toward a resilient cross-border strategy.
1. IRS Activates the Foreign Filer TCC Registration System (July 6, 2026)
The IRS officially activated the Foreign Filer TCC Registration System on July 6, 2026, as detailed in the newly released IRS Publication 6170. This is a critical development for international sellers who lack a US Taxpayer Identification Number (TIN) but still have reporting obligations.
Who does this affect?
This system is specifically designed for foreign entities and filers who need to submit information returns, such as Form 1042-S (Foreign Person’s US Source Income Subject to Withholding) and certain 1099 forms, but do not have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Transitioning from FIRE to IRIS
The longstanding Filing Information Returns Electronically (FIRE) system is being phased out. The IRS will stop accepting new FIRE TCC applications on July 21, 2026. By the end of 2026, the FIRE system will retire completely, replaced by the Information Returns Intake System (IRIS). However, because IRIS currently requires a US TIN for access, the Foreign Filer TCC Registration System serves as the essential bridge. By registering here, you can obtain a Transmitter Control Code (TCC) and a TCC Global Intermediary Identification Number (GIIN). These credentials allow you to transmit data electronically through the International Data Exchange System (IDES).
Actionable takeaway
If your business operates a US entity or earns US-sourced income subject to reporting, you must register through this new portal immediately. Do not wait until the December 2026 retirement of the FIRE system. Registering now ensures your electronic filing capabilities remain uninterrupted.
2. CBP Codifies De Minimis Suspension and New Postal Entry Rules
For years, international e-commerce sellers have relied on the $800 de minimis exemption (Section 321) to ship goods into the US duty-free. That landscape changed on July 24, 2026, when the U.S. Customs and Border Protection (CBP) issued an Interim Final Rule codifying the suspension of de minimis treatment for specific high-volume categories.
Key Deadlines and Changes
- Effective Date: July 24, 2026.
- Compliance Deadline: October 22, 2026.
- Comment Period: Ends July 24, 2026.
This rule establishes a new postal informal entry process for shipments valued at $2,500 or less. While the $800 threshold was previously a “hands-off” category for many sellers, the new codification means that CBP is increasing data requirements for all shipments.
Why this matters for your logistics
The suspension of de minimis for certain sectors means you may now be liable for duties and taxes on shipments that were previously exempt. Furthermore, the shift to a formal “postal informal entry” requires more precise Harmonized Tariff Schedule (HTS) coding and digital documentation before the package reaches the US border. If you are shipping from the UK, EU, or Australia, you must audit your product categories against the new CBP list to see if your “de minimis” status still holds. Failing to adapt by the October 22 compliance deadline will likely result in held shipments and significant storage fees at the port of entry.
For more information on navigating IRS and customs complexity, read our USA tax updates 101 guide.
3. IRS Notice 2026-17: Simplifying Foreign Currency Calculations (Section 987)
The third major update involves IRS Notice 2026-17, which introduces much-needed simplifications for Section 987 foreign currency rules. This is highly relevant for international companies with US Qualified Business Units (QBUs) that operate in a functional currency different from the parent company.
The Equity and Basis Pool Method Election
Computing gains and losses on foreign currency can be an administrative nightmare for SMEs. Notice 2026-17 allows taxpayers to elect the Equity and Basis Pool Method. This simplified approach streamlines how you calculate the unrecognized currency gain or loss when assets or liabilities move between your QBU and the home office.
Benefit of the election
- Reduced Administrative Burden: You no longer need to track historical exchange rates for every individual asset in the QBU.
- Accuracy: It provides a clearer mathematical framework for computing branch remittances.
- Consistency: Using the basis pool method aligns your US tax reporting with standard international accounting practices, making it easier for your bookkeeping team to manage.
This election is generally made on a timely filed tax return. If you haven’t yet reviewed your Section 987 exposure for the 2026 tax year, now is the time to consult with a compliance partner to see if this simplification saves you time and reduces the risk of errors.
Your July 2026 US Compliance Checklist
To ensure your business remains compliant with these fast-moving changes, follow this structured checklist:
- Register for TCC: If you lack a US TIN, visit the IRS Foreign Filer TCC Registration System to secure your credentials before the FIRE system shuts down applications on July 21.
- Audit Your Shipments: Review your US customs data. Are your goods still eligible for de minimis? If not, prepare for the informal entry process and calculate your new duty liabilities.
- Update HTS Codes: Ensure all products shipped to the US have accurate HTS codes to facilitate the new CBP documentation requirements.
- Review Currency Elections: Speak to your accountant about IRS Notice 2026-17 and whether the Equity and Basis Pool Method is right for your Section 987 calculations.
- Maintain Documentation: Keep rigorous records of all IDES transmissions and customs entries to protect yourself in the event of an audit. You can learn more about surviving IRS audits here.
How Sterlinx Global Supports Your US Growth
Managing cross-border compliance isn’t just about filing papers; it’s about ensuring your business can operate without friction. At Sterlinx Global, we act as your global tax compliance suite. We don’t just advise, we execute. From managing your daily bookkeeping and VAT/Sales Tax calculations to ensuring your US entity meets all new IRS and CBP filing requirements, we handle the technical details so you can focus on scaling your international sales.
