by Ariful | Jul 19, 2026 | US Updates
The IRS has just introduced a significant shift in how international entities manage U.S. information returns. As of July 2026, the new Foreign Filer TCC Registration System is officially live, providing a dedicated pathway for non-U.S. businesses to maintain compliance. This launch arrives at a critical moment: the legacy FIRE (Filing Information Returns Electronically) system is entering its final stages, with a major application deadline set for July 21, 2026.
If you are a UK Limited Company or an international e-commerce seller operating in the U.S. market, these changes directly impact how you file Form 1042-S and various 1099 forms. Navigating these digital transitions is essential to avoid service interruptions and ensure your cross-border operations remain fully compliant with the latest IRS protocols.
The New Foreign Filer TCC Registration System (Publication 6170)
For years, international filers without a U.S. Taxpayer Identification Number (SSN or ITIN) faced hurdles when trying to obtain a Transmitter Control Code (TCC) for electronic filing. The newly launched Foreign Filer TCC Registration System, detailed in IRS Publication 6170, solves this by allowing certain foreign entities to register without a U.S. TIN.
This system is specifically designed for foreign filers whose authorized users do not have U.S. identification. Through this secure web-based portal, you can now:
- Register for a TCC GIIN: Obtain a specific Global Intermediary Identification Number (GIIN) associated with your transmitter registration.
- Request a TCC: Secure the code necessary to transmit data through the International Data Exchange System (IDES).
- Access IDES: Use your approved TCC GIIN and TCC to enroll in IDES, which is the required platform for transmitting Forms 1042-S and applicable 1099s for non-U.S. filers.
Important Note: If your authorized users do have a U.S. TIN (SSN or ITIN), you must not use this system. Instead, you are required to apply for a TCC through the IRIS (Information Returns Intake System) portal.
The FIRE System Retirement: July 21 Deadline
The IRS is moving away from the legacy FIRE system to modernize U.S. tax data processing. The transition is happening rapidly, and you must take note of the following critical dates:
- July 21, 2026: This is the final day the IRS will accept new FIRE TCC applications. If you do not have a FIRE TCC by this date, you will be unable to obtain one for the legacy system.
- December 31, 2026: The FIRE system will be decommissioned. While existing TCC holders can update their applications until this date, the system will become "read-only" shortly thereafter.
- Filing Season 2027: All electronic information returns must transition to IRIS or the IDES (for specific foreign filers).
Don’t wait for the deadline. If you currently rely on a FIRE TCC, it will not work in the new IRIS system. You must apply for an IRIS-specific TCC or follow the Foreign Filer registration path to ensure your 2027 filings are not delayed. Maintaining continuous compliance is the only way to protect your business from tax deadlines and penalties.
Business Tax Account Expanded Features (FS-2026-11)
Alongside these filing system updates, the IRS has expanded the Business Tax Account (BTA) platform. According to Fact Sheet FS-2026-11, released in July 2026, the BTA now offers several high-value self-service tools that simplify administrative tasks for international sellers:
- CP575 Notice Downloads: You can now download your official EIN verification notice (CP575) directly from the BTA. This is a vital document often requested by banks and payment processors to verify your U.S. tax status.
- Expanded Digital Notices: The IRS has added more notices to the online library, including refund notifications and extension approvals. This reduces the reliance on physical mail, which is often slow for UK-based businesses.
- Offer in Compromise (OIC) Payments: Eligible taxpayers can now submit OIC payments directly through the portal, integrating debt management into the digital dashboard.
By utilizing these tools, you can manage your ecommerce compliance abroad with greater visibility and less administrative friction.
Automatic Exemption from Penalty Program (FS-2026-12)
The IRS is also introducing a new "carrot" for compliant taxpayers. Fact Sheet FS-2026-12 outlines the Automatic Exemption from Penalty program. This initiative is designed to recognize and reward businesses that have a consistent history of timely filing and payment.
While full operational details are still emerging, the program aims to:
- Automatically waive certain penalties without requiring a manual request from the taxpayer.
- Focus on compliance history: Eligibility is tied to your track record of meeting U.S. tax obligations on time.
This makes tax compliance for e-commerce marketplaces even more rewarding. Staying organized and filing correctly now doesn’t just avoid fines, it can earn you a "safety net" for the future.
Practical Checklist for International Sellers
To prepare for these changes and the looming FIRE retirement, international businesses should follow this checklist:
- Audit Your TCC Status: Determine if your current filing code is for FIRE or IRIS. If it’s FIRE, plan your migration immediately.
- Verify User IDs: Check if your authorized users have U.S. TINs. If they don’t, review Publication 6170 to see if you qualify for the Foreign Filer TCC Registration System.
- Register for BTA: Set up your IRS Business Tax Account to access the new digital notice library and download your CP575 notice.
- Clean Up Compliance History: Ensure all past-due filings are settled to qualify for the new Automatic Exemption from Penalty program.
- Centralize Data: Maintain accurate bookkeeping to ensure your 1042 and 1099 data is ready for the new e-filing systems.
How Sterlinx Global Supports Your U.S. Compliance
Navigating the transition from FIRE to IRIS or registering through the Foreign Filer TCC system can be complex, especially when managing a fast-growing e-commerce brand. This is where a structured, tech-driven partner becomes essential.
At Sterlinx Global, we specialize in delivering accurate reporting and end-to-end tax compliance for UK Limited Companies trading in the U.S. and beyond. We don’t just advise; we execute. Our team manages the calculations, prepares the filings, and ensures your data is transmitted correctly through the latest IRS systems, whether that is IRIS or IDES.
By partnering with us, you can focus on scaling your business while we handle the operational heavy lifting of U.S. tax compliance. To ensure your business is ready for the July 21 deadline and the 2027 filing season, Contact us today to speak with our compliance specialists.
by Ariful | Jul 18, 2026 | Australia Updates
As we cross into the heart of the 2026 tax season, the Australian Taxation Office (ATO) has signaled a clear shift toward intensified enforcement and digital integration. For small business owners, e-commerce sellers, and digital entrepreneurs across Australia, from the bustling tech hubs of Sydney to the growing SME sectors in Brisbane and Perth, this year’s “Tax Time” is less about routine filing and more about precision and compliance.
The ATO has already issued a series of warnings this July, specifically targeting work-related car expenses and long-standing small business debt. At Sterlinx Global, we are seeing a heightened focus on data matching and real-time reporting, making it essential for you to understand these changes to avoid costly audits or penalties.
The ATO Car Expense Warning: No More “Automatic” 5,000km Claims
On July 9, 2026, the ATO sent targeted emails to approximately 500,000 Australian drivers. The message was unambiguous: car expense claims are being watched more closely than ever. A common misconception among taxpayers is that the 5,000km “cents-per-kilometre” threshold is an automatic entitlement that doesn’t require proof.
This is not the case. The ATO is actively flagging taxpayers who claim the full 5,000km limit every year without being able to show how those kilometers were calculated. If you are an employee or a sole trader using your personal vehicle for work, you must be prepared to justify your claim.
Key takeaways for your car claim:
- Rate Update: For the 2025-26 financial year return you are lodging now, the rate is 88 cents per kilometre. However, for the 2026-27 year starting now, the rate has increased to 91 cents per kilometre.
- The “Commute” Trap: You cannot claim travel between your home and your regular place of work. The ATO is specifically looking for “home-to-work” travel incorrectly classified as work-related.
- Records are Mandatory: Even if you use the cents-per-kilometre method, you need diary entries or records showing how you calculated the business-use portion of your travel.
- Wait for Pre-fill: The ATO strongly advises waiting for your employer and third-party data to pre-fill in myGov before lodging to ensure your income and car allowances are correctly reflected.
ATO Debt Recovery Ramps Up: The $35.9 Billion Problem
According to a recent report from the Australian National Audit Office (ANAO) released on July 15, small businesses now owe $35.9 billion of the ATO’s $54.2 billion total collectable debt. This massive shortfall has triggered an aggressive recovery campaign.
In June 2026, Australia recorded its highest monthly insolvency total of the year, a direct result of the ATO’s firmer stance on debt collection. We are seeing an increase in the issuance of Director Penalty Notices (DPNs), garnishee notices, and in extreme cases, asset freezes.
Don’t wait for a knock on the door. If your business has outstanding BAS or income tax debt, the best course of action is to engage with the ATO early. We recommend reviewing your digital banking solutions to ensure your cash flow management allows for structured tax payments.
Moving Toward Real-Time Tax: The Dynamic PAYG Pilot
In an effort to modernize the tax system, the ATO launched a pilot program for Dynamic PAYG Instalments in mid-July 2026. This is a significant step toward “Pay-as-you-go” accounting that reflects actual business performance rather than historical data.
- Pilot Launch: From 1 July 2027, SMEs will have the option to move to monthly PAYG reporting using dynamic calculations embedded directly into their accounting software.
- Draft PCG 2026/D3: The ATO has released new guidance regarding General Interest Charges (GIC) for excessive variations. If you choose to vary your PAYG instalments downward and it turns out your estimate was significantly lower than your actual liability, you could face stiff interest penalties.
This shift emphasizes the need for accurate, daily bookkeeping. At Sterlinx Global, we manage your ongoing compliance so that your data is always “audit-ready” and reflects your true tax position.
Essential Tax Time 2026 Changes for Small Businesses
Beyond car expenses and debt recovery, several technical changes have come into effect for the 2026 filing season that you need to be aware of:
- Cents-per-km Increase: As mentioned, the rate for the 2026-27 year is now 91 cents. Ensure your payroll systems are updated if you reimburse employees at the ATO rate.
- Trust Tax Return Label Updates: There are new labels for trust returns and enhanced pre-fill data for trust distributions. This is designed to provide greater transparency over how income flows through discretionary and family trusts.
- myGov Linking and Digital Proof: The process for linking your business to myGov and providing digital proof of record ownership has changed. Ensure your “MyID” (formerly myGovID) is at the correct strength level to access the Business Portal.
- GST Credit Crackdown: The ATO has intensified its enforcement on small businesses claiming GST credits for private expenses or without valid tax invoices. Misclassifying a personal weekend trip as a business conference is a high-risk move in 2026.
Payday Super: The Biggest Change to Payroll in a Decade
Starting 1 July 2026, the way you pay superannuation has fundamentally changed. “Payday Super” is now the law, requiring employers to pay super guarantee (SG) contributions at the same time they pay wages.
This change is supported by the SuperStream v3 upgrade, which includes Member Verification Requests (MVR) and utilizes the New Payments Platform (NPP) for faster, real-time processing.
To remain compliant with Payday Super, you must:
- Ensure your payroll software is SuperStream v3 compliant.
- Update your cash flow forecasts to account for super being a weekly or fortnightly expense rather than a quarterly one.
- Verify employee fund details immediately upon hiring to avoid “unmatched” payment errors.
Failure to pay super on time under the new regime will trigger the Super Guarantee Charge (SGC) and potential director liability much faster than under the old quarterly system.
How Sterlinx Global Supports Your Australian Compliance
Navigating the complexities of the ATO’s 2026 requirements can be daunting, especially for growing SMEs and e-commerce brands trading across borders. Sterlinx Global operates as your dedicated compliance partner, ensuring that your bookkeeping, GST filings, and year-end accounts are handled with precision.
We specialize in taking the data you provide and turning it into seamless compliance. Whether you are managing an Australian PTY LTD or expanding your international brand into the Aussie market, our tech-driven approach ensures you stay ahead of ATO deadlines and avoid the “red flags” that trigger audits.
Don’t let Tax Time 2026 become a burden on your business growth. Maintain your momentum while we handle the heavy lifting of tax compliance.
Contact us today to speak with an expert about your Australian tax and accounting needs. For more updates on global tax and compliance, stay tuned to our insights.
by Ariful | Jul 18, 2026 | Canada Updates
TITLE: Key CRA Updates for July 2026: New Benefits, Payroll Changes & Mid-Year Tax Planning
Staying ahead of tax regulations is essential for maintaining a healthy business and personal financial outlook. As of July 18, 2026, the Canada Revenue Agency (CRA) has implemented several significant changes that impact both individual taxpayers and business owners. From the launch of a major new benefit program to mid-year payroll adjustments in specific provinces, there is much to navigate this month.
Whether you are a UK Limited Company operating in Canada or a domestic SME, understanding these updates will help you remain compliant and optimize your tax position for the remainder of the year.
Welcome the New Canada Groceries and Essentials Benefit (CGEB)
On July 3, 2026, the federal government officially launched the Canada Groceries and Essentials Benefit (CGEB). This program replaces the long-standing GST/HST credit and is designed to provide more robust support for low-to-modest-income households facing rising costs.
If you were previously eligible for the GST/HST credit, you do not need to apply for the CGEB. The CRA automatically determines your eligibility based on your 2025 tax return. The first round of payments was issued on July 3, 2026. This new benefit is approximately 25% higher than the quarterly payments provided under the previous system. For a family of four, this could mean up to $1,890 in total benefits for 2026.
Pro Tip: Ensure your direct deposit information is up to date in your CRA “My Account” to avoid any delays in receiving these increased payments.
July 2026 Federal Benefit Indexation: What it Means for You
Every July, the CRA adjusts several federal benefits to keep pace with inflation. For 2026, the indexation factor has been applied, resulting in several increases that took effect earlier this month:
- Canada Child Benefit (CCB): The maximum annual benefit has increased to $8,157 for children under age 6 and $6,883 for children aged 6 to 17.
- Old Age Security (OAS): Beneficiaries aged 65 to 74 saw a 1.2% increase, bringing the monthly payment to approximately $751.97.
- Canada Disability Benefit: This benefit has risen to $204.20 per month, providing additional support for eligible individuals.
- Canada Workers Benefit (CWB): Advance payments for those eligible were issued on July 10, 2026.
These adjustments ensure that the purchasing power of these essential benefits is maintained. If you receive any of these, check your bank statements or CRA account to verify the updated amounts.
Immediate Payroll Formula Changes for Employers
If you manage payroll for employees in British Columbia, Newfoundland and Labrador, or Prince Edward Island, you must act now. Effective July 1, 2026, the CRA released the 123rd Edition of the Payroll Deductions Formulas, which includes specific provincial adjustments.
British Columbia (BC)
The lowest personal income tax rate in BC has increased to 5.60%. Because this change is being implemented mid-year, the CRA requires a prorated rate of 6.14% for the period of July to December 2026 to ensure the correct annual tax is withheld.
Newfoundland and Labrador (NL)
The Basic Personal Amount (BPA) has increased to $13,094 for 2026. To account for the lower amount used in the first half of the year, employers should use the prorated BPA of $15,000 for payroll calculations starting this month.
Prince Edward Island (PEI)
PEI has introduced a new top income tax bracket of 20% for taxable income exceeding $200,000. For the remainder of 2026, a prorated rate of 21% applies to income in this bracket to catch up on withholdings.
Action Required: Update your payroll software immediately to reflect these changes. Failure to do so could result in under-withholding and potential penalties during year-end filings.
Prepare for the CRA Review Season
The CRA’s “review season” is currently in full swing. This is the period when the agency cross-references the information on tax returns with third-party data and requests additional documentation from taxpayers.
Don’t worry, a request for information does not necessarily mean you have made a mistake. It is often a routine verification. The CRA is currently focusing its reviews on:
- Medical Expenses: Ensure you have all receipts and prescriptions.
- Donations: Keep your official tax receipts from registered charities.
- Employment Expenses: Ensure you have a signed Form T2200 from your employer.
- Foreign Tax Credits: Be prepared to show proof of taxes paid to foreign jurisdictions.
Keep your records organized. Having a digital folder with scanned receipts will make responding to a CRA request quick and stress-free.
Important Digital Infrastructure Updates
The CRA continues to modernize its digital services, and two major changes took effect this week:
- Business Registration Online (BRO) Security: As of July 14, 2026, the CRA now requires a formal login to access the Business Registration Online (BRO) service. Previously, some features were accessible with less stringent authentication. This move is part of a broader effort to enhance the security of business data.
- Disability Tax Credit (DTC) Applications: Also effective July 14, 2026, the “Submit documents” feature in the online portal will no longer accept initial DTC applications unless specifically requested by the CRA. You should use the dedicated “Apply for the Disability Tax Credit” digital tool instead to ensure faster processing.
Mid-Year Tax Planning Checklist
With the first half of 2026 behind us, now is the perfect time to review your financial strategy. Taking small steps now can prevent large tax bills next April.
- Review Your Tax Installments: If you are self-employed or have significant investment income, ensure your quarterly installments are on track to avoid interest charges.
- Evaluate Business Expenses: For business owners, review your year-to-date spending. Are there necessary equipment purchases or marketing investments you can make now to offset your taxable income?
- Monitor Nexus for Cross-Border Sales: If you are a UK company selling into Canada, check if your sales volumes have triggered new GST/HST registration requirements in different provinces.
- Check Salary vs. Dividends: If you run a Canadian Corporation, July is a great time to re-evaluate the most tax-efficient mix of salary and dividends for your specific situation.
How Sterlinx Global Can Support Your Growth
Navigating the complexities of Canadian tax law, especially when managing international operations, can be overwhelming. At Sterlinx Global, we specialize in taking the compliance burden off your shoulders. We aren’t just consultants; we are your end-to-end tax compliance partner.
From precise bookkeeping and payroll management to GST/HST filings and corporate year-end accounts, we handle the technical details so you can focus on scaling your business. Our structured, tech-driven system ensures that your data is processed accurately and your deadlines are always met.
Need help navigating these July changes?
Contact us today to speak with an expert about your unique situation.
by Ariful | Jul 17, 2026 | Canada Updates
TITLE: Key Canadian Tax and Benefit Changes Effective July 2026
Staying compliant with the Canada Revenue Agency (CRA) requires constant vigilance, especially for businesses operating across borders. As of July 17, 2026, several significant changes have come into effect that impact both your corporate payroll and individual benefit eligibility. Whether you are managing a UK-based entity with Canadian subsidiaries or a digital business scaling in the Great White North, understanding these mid-year shifts is essential to avoid penalties and optimize your tax position.
This update covers the rollout of the new Canada Groceries and Essentials Benefit (CGEB), crucial payroll formula adjustments, and the start of the CRA’s rigorous post-filing review season.
Maximise Your Benefits with the New Canada Groceries and Essentials Benefit (CGEB)
July 2026 marks a major transition in the Canadian social support landscape. The Canada Groceries and Essentials Benefit (CGEB) has officially replaced the traditional GST/HST credit. This change is designed to provide more robust support for low- to modest-income households amidst evolving economic conditions.
Receive 25% Higher Payments Automatically
The CGEB is not just a name change; it represents a significant increase in financial support. For the next five years, payments under the CGEB are structured to be 25% higher than the former GST/HST credit. The first quarterly payment for this new benefit was issued on July 3, 2026.
Key highlights for CGEB eligibility:
- No Application Needed: If you were already receiving the GST/HST credit, the transition to CGEB happens automatically.
- Filing Requirement: You must ensure your 2024 and 2025 tax returns are filed. The CRA uses these filings to determine your eligibility and payment amounts.
- Long-term Support: The enhanced 25% rate is legislated to remain in place for the next five years, providing predictable support for eligible recipients.
Maintaining compliance through timely filing is the only way to ensure these payments reach you or your eligible employees without interruption.
Navigate the July 2026 CRA Payroll Deductions Update
For employers, July 1 is a critical date on the compliance calendar. The CRA has released the 123rd edition of the T4127, which introduces new formulas for federal and provincial payroll deductions. These changes affect how you calculate withholdings for your employees across different provinces.
Implement New Provincial Rate Changes
Different provinces have seen varying adjustments in this mid-year update. It is essential to update your payroll software or consult with your accounting partner to ensure accuracy.
- British Columbia: BC has seen a modest rate increase, now set at 5.60% for the lowest bracket.
- Ontario: In a move to support business growth, the Ontario lower corporate tax rate has decreased to 2.2% effective July 1, 2026.
- Newfoundland and Labrador & PEI: These provinces have introduced prorated changes that require careful calculation for the remainder of the 2026 tax year.
- Quebec: As always, remember that Quebec handles its payroll deductions separately through Revenu Québec. Ensure your systems are synced with their specific July updates.
By updating your payroll formulas now, you avoid the administrative headache of "catch-up" withholdings later in the year, which can frustrate employees and lead to CRA inquiries.
Prepare for CRA Review Season: Protect Your Compliance
We have now entered "Review Season." Following the spring filing deadline, the CRA is actively conducting post-filing reviews. These are not full audits, but they are formal requests for information to verify the claims made on your recent returns.
Identify Common Review Triggers
The CRA typically focuses on specific areas where documentation is often missing or incorrectly applied. Being proactive with your record-keeping will save you time and stress.
Common areas under review this season include:
- Medical Expenses: Ensure all receipts are itemized and from qualified practitioners.
- Charitable Donations: The CRA often checks for official tax receipts with valid registration numbers.
- Employment and Rental Expenses: Keep detailed logs of business-use-of-home and vehicle expenses.
- Foreign Tax Credits: For our cross-border clients, the CRA is scrutinizing foreign income and the taxes paid to other jurisdictions to ensure no double-claiming is occurring.
- Investment Income: Documentation for capital gains and losses is a high-priority area.
Don't worry if you receive a letter. Often, the CRA simply needs a digital copy of a receipt you already have. However, responding promptly is vital to prevent the automatic disallowance of your claims.
Strategic Changes to SR&ED and Corporate Tax Rates
For innovative businesses, the Scientific Research and Experimental Development (SR&ED) program remains a cornerstone of tax planning. Significant enhancements have been introduced to incentivize larger projects and simplify the claim process.
Benefit from Increased ITC Limits
The expenditure limit for the 35% Investment Tax Credit (ITC) has been doubled. It has increased from $3 million to $6 million. This allows growing tech companies and manufacturers to claim a higher rate of return on a much larger portion of their R&D spend.
Furthermore, as of April 2026, a new pre-claim approval process is available. This allows you to gain certainty on whether your project qualifies before you commit significant capital, reducing the risk of a denied claim after the work is finished.
Provincial Corporate Tax Shifts
In addition to the Ontario rate reduction to 2.2%, other provinces are adjusting their corporate tax landscapes:
- Newfoundland and Labrador: Corporate rates are on a downward trajectory, aiming for a reduction from 2.5% to 1% by 2028.
- New Brunswick: The Small Business Investor Tax Credit has increased to 25%, making it an attractive time for local investment.
- British Columbia: Watch for the new Manufacturing Investment Tax Credit, designed to bolster the local industrial sector.
Disability Tax Credit (DTC) and Form Deadlines
The CRA is modernizing its approach to the Disability Tax Credit (DTC), but this comes with strict new document submission rules that you must follow to maintain eligibility.
- Online Submissions: As of July 14, 2026, the online portal no longer accepts unsolicited DTC documents. You should only upload documentation if the CRA has explicitly requested it via a formal letter or notice.
- Form Expiry: If you are still using older versions of the T2201 form, take note. Pre-2023 versions of this form will no longer be accepted after September 8, 2026. Ensure your medical practitioners are using the latest digital or paper versions.
Your July 2026 Compliance Checklist
To ensure your Canadian operations stay on track, use this checklist to manage your upcoming deadlines and benefit expectations
by Ariful | Jul 17, 2026 | US Updates
TITLE: Three Key IRS Updates for July 2026: What International Sellers and Digital Businesses Must Know
Navigating the American tax landscape as an international seller or a growing digital business can often feel like a balancing act. With the IRS frequently updating its enforcement and relief protocols, staying informed is not just helpful, it is essential for your bottom line.
July 2026 has brought several significant shifts that aim to streamline compliance and offer a safety net for those who maintain a strong filing history.
At Sterlinx Global, we operate as your Global Tax Compliance Suite, ensuring that your data is processed into accurate filings every day. Whether you are managing a UK Limited Company trading in the US or a US-based eCommerce brand, these updates directly impact how you handle your annual and quarterly obligations.
Here are the three critical IRS updates you need to know this month.
Experience Hassle-Free Filing with the New Automatic Exemption from Penalty (AEP)
The IRS has officially launched the Automatic Exemption from Penalty (AEP) program via news release IR-2026-83, issued on July 8, 2026. This is a game-changer for compliant taxpayers. For years, the “First Time Abate” (FTA) policy required taxpayers to manually request relief for minor errors, often leading to long wait times and administrative hurdles.
The AEP program changes the script by making relief automatic. If you have a clean compliance history, specifically, three years of timely filing and payment, the IRS system will now automatically waive penalties for failure-to-file, failure-to-pay, and failure-to-deposit.
Why the AEP Matters for Your Business:
- Automatic Peace of Mind: You no longer need to submit formal requests or wait for manual reviews if you have maintained a solid record.
- Broad Eligibility: This applies to 2025 and 2026 quarterly returns, covering essential forms like the 1040, 1120, and 941.
- Phased Implementation: While the system is live now, full implementation across all eligible tax types is expected by January 1, 2027.
Maintain your compliance history now to ensure you remain eligible for this protection. If you are unsure about your previous filings, our team can help you review your cross-border tax strategy to ensure everything is in order.
Streamline Your Reporting with the New Foreign Filer TCC System
For international sellers without a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), filing information returns has historically been a logistical nightmare. The IRS has addressed this by launching a dedicated Foreign Filer Transmitter Control Code (TCC) Registration System.
This new system provides a critical workaround for the stricter IRIS (Information Returns Intake System) access requirements. Foreign entities can now obtain a TCC more efficiently to file forms such as 1042-S and the 1099 series electronically through the IDES platform.
Key Benefits of the Foreign Filer TCC System:
- Eliminates ID.me Roadblocks: Many foreign directors struggled with the ID.me verification process; this new system offers a streamlined path for non-US residents.
- Faster Processing: Electronic filing through a dedicated TCC ensures your data reaches the IRS faster, reducing the risk of late-filing penalties.
- Compliance for Non-US Entities: If you operate a foreign entity with US-sourced income, this system is your primary gateway to maintaining legal standing.
Don’t let technical registration hurdles stall your growth. Ensuring your USA sales tax and information reporting are up to date is vital for maintaining your marketplace accounts.
1099-K Reporting: The $20,000 Threshold is Confirmed for 2026
There has been significant debate over the last few years regarding the 1099-K reporting threshold for third-party settlement organizations (TPSOs) like Amazon, PayPal, and Shopify. The IRS has now confirmed that for the 2026 tax year, the reporting threshold remains at $20,000 and 200 transactions.
This follows the “One Big Beautiful Bill Act,” which retroactively repealed the controversial $600 threshold that was previously proposed.
What This Means for Your Marketplace Sales:
- Consistent Reporting: You will only receive a Form 1099-K from your payment processors if you exceed both the $20,000 and 200-transaction limits.
- Reduced Administrative Load: This higher threshold prevents smaller sellers and start-ups from being overwhelmed by complex information returns for low-volume activity.
- Accuracy is Still Paramount: Even if you do not receive a 1099-K, you are still legally required to report all business income on your tax returns.
Keep your records organized. While the threshold is higher, the IRS uses 1099-K data to cross-reference your gross receipts. Discrepancies can trigger inquiries, which is why accurate, daily bookkeeping is non-negotiable for growing SMEs.
How Sterlinx Global Keeps You Compliant
At Sterlinx Global, we don’t just advise, we deliver. We understand that as a business owner, your focus should be on scaling your brand, not navigating IRS news releases. Our operating model is designed for the modern entrepreneur: you provide the data, and we complete the compliance.
From bookkeeping and tax calculations to the precise filing of VAT, GST, and US Sales Tax, we manage the entire lifecycle of your tax obligations. We specialize in supporting UK, USA, Canadian, and Australian entities with a structured, tech-driven approach that eliminates the stress of deadlines.
Whether you need a full-suite accounting solution or modular support for your US tax updates, we are here to ensure your business remains in the IRS’s “good books,” maximizing your chances of benefiting from programs like the new AEP.
Frequently Asked Questions
What is the IRS AEP program?
The Automatic Exemption from Penalty (AEP) is a new IRS initiative that automatically waives failure-to-file and failure-to-pay penalties for taxpayers with a clean compliance history over the previous three years.
Does the $20,000 1099-K threshold apply to international sellers?
Yes. If you are selling into the US market through a third-party processor and meet the $20,000/200 transaction criteria, you will likely receive a 1099-K. However, your specific tax treaty status may impact how this income is taxed.
How do I get a Foreign Filer TCC?
You can apply through the new IRS Foreign Filer TCC Registration System, designed specifically for non-US residents who do not have an SSN or ITIN but need to file information returns electronically.
Is First Time Abate (FTA) still available?
The IRS is currently transitioning from FTA to the automatic AEP system. AEP will fully replace FTA for most eligible returns with due dates on or after January 1, 2027.
Take Action Today
The US tax landscape is moving toward automation, and your business should too. By partnering with Sterlinx Global, you gain a dedicated compliance team that monitors these changes in real-time.
Contact us today to secure your business’s future in the global market.
