Big Beautiful Bill: No changes to ind info returns or withholding tables for 2025

The IRS has announced that, as part of its phased implementation of the One Big Beautiful Bill Act, there will be no changes to certain information returns or withholding tables for Tax Year 2025 related to the new law.

Key points for TY 2025 relating to the Act include these provisions:

• Form W-2, existing Forms 1099, and Form 941 and other payroll return forms will remain unchanged.
• Federal income tax withholding tables will not be updated for these provisions.
• Employers and payroll providers should continue using current procedures for reporting and withholding.

These decisions are intended to avoid disruptions during the tax filing season, and to give the IRS, business and tax professionals enough time to implement the changes effectively.

Get a summary of the Act

Looking ahead to TY 2026

The IRS is working on new guidance and updated forms for TY 2026.These will include changes to how tips and overtime pay are reported. The IRS will coordinate with employers, payroll providers, and tax professionals to ensure a smooth transition.

More information will be shared in the coming months about how taxpayers can claim Act-related tax benefits when they file their returns. The US Treasury Department and the IRS are preparing additional guidance for reporting entities and individual taxpayers.

Source: IRS