IRS Implements New Rules for 2026

IRS Implements New Rules for 2026
By Jimmy Warden
NAPS Secretary/Treasurer

Every year, the IRS reevaluates standard mileage rates, meals and incidental expenses (per diem). H.R. 1 had a provision that changed a certain IRS rule. Following are the 2026 changes.

The first change that took effect — Oct. 1, 2025, through Sept. 31, 2026 — pertains to meals and incidental expenses. In March, I received multiple calls from branches asking me the per-diem rate for this year’s Legislative Training Seminar. The per-diem for meals and incidental expenses for the Washington, DC, area has not changed compared to the 2025 rate:

M&IE total:. . . . . . . . . . . . . . . . . . . . . . $92
Breakfast: . . . . . . . . . . . . . . . . . . . . . . $23
Lunch: . . . . . . . . . . . . . . . . . . . . . . .. . . $26
Dinner: . . . . . . . . . . . . . . . . . . . . . . . . . $38
Incidental expenses: . . . . . . . . . . . . . .$5
First and last day of travel: . . . . . . . . .$69

The meals and incidental expenses (per-diem) rate differ from area to area around the country. If you travel somewhere other than the Washington, DC, area, I suggest you verify the rate by Googling “GSA per diem 2026.” Enter the state and area to find the rates.

I also have been asked, “If a meal is provided, is the per-diem rate reduced?” The answer is, “Yes.”

If you attend an event in the Washington, DC, area, your rate is $92. If breakfast and lunch are served at the event, you then subtract the breakfast and lunch rate from the total rate. Therefore, your per diem would be $43 for that specific day. The first and last days are your travel days and are calculated at 75% of the total.

The second change — the business standard mileage rate — took effect on Jan. 1, 2026. In 2025, the rate was 70 cents per mile. Effective Jan. 1 through Dec. 31, 2026, the rate has increased to 72.5 cents per mile. This business standard mileage rate is the same across the country. It does not differ from area to area as does the per-diem rate.

The third major change occurred at the signing of H.R. 1 on July 4, 2025. Beginning in 2026, both 1099-NEC and 1099-MISC forms had their reporting thresholds raised to $2,000. This change will pertain to funds received starting Jan. 1, 2026.

For all funds received in 2025, the old rule stands — $600 or more. H.R. 1 was intended to modernize tax rules and reduce administrative burdens for small businesses. Raising the threshold from $600 to $2,000 reflects the IRS’ goal of eliminating low-dollar reporting that required significant time and adjustments.

Don’t be confused about this change; you still are required to report any amount of income received to the IRS. This change means the employer (NAPS Headquarters) no longer will be required to report any funds $1,999 or less or provide 1099-NECs or 1099-MISCs to NAPS members.

But be advised, you still are required to report any funds received. If you are unsure about this, Google “IRS Form 1099 Requirements.”

In 2027, any members receiving sponsorship checks and High-Five Club checks for signing new members in 2026 — unless the total amount is $2,000 or more — will not receive a 1099 from NAPS Headquarters.

Remember: Increasing membership demonstrates leadership.

Stay safe!