As part of the IRS’s phased implementation of the One Big, Beautiful Bill Act, they have announced that there will be no changes to certain 2025 tax year information returns or withholding tables related to the new law. (IR-2025-82)
Pursuant to the IRS announcement:
- Form W-2, existing Forms 1099, and Form 941 and other payroll return forms will remain unchanged for tax year 2025;
- Federal income tax withholding tables will not be updated for these provisions for tax year 2025; and
- Employers and payroll providers should continue using current procedures for reporting and withholding.
Taxpayers have been particularly concerned about whether changes to information returns or withholding tables would be made to reflect the new deductions for tips, overtime, and passenger vehicle loan interest. Though there will be no changes to the information returns for 2025, the IRS did state that it will be providing additional information in the coming months about how taxpayers can claim OBBBA-related tax benefits when they file their returns.
In addition, the IRS is working on new guidance and form updates for the 2026 tax year.
The IRS directs taxpayers and tax professionals to its new web page covering the OBBBA 2025 tax provisions:
www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions
Sign up for Spidell’s 2025/2026 Federal and California Tax Update webinar and get details on OBBBA’s many tax provisions. Click here and register today.
Sign up for Spidell’s Flash E-mail — Get breaking news delivered to your inbox, plus other free analysis and information for tax professionals. Join our community and stay at the top of your game. Click here to sign up.
