The Internal Revenue Service reassured taxpayers and tax professionals Thursday that it’s not planning to make any immediate changes to its information returns such as Forms W-2 and 1099 and withholding tables for 2025 as a result of the new tax law — but changes are planned for next year.
As part of its phased implementation of the One Big Beautiful Bill Act, the IRS said there will be no changes to certain information returns or withholding tables for tax year 2025 related to the new law.
That means Form W-2, the existing Forms 1099, Form 941 and other payroll return forms will stay unchanged for TY 2025. In addition, the federal income tax withholding tables won’t be updated for these provisions for this current tax year. Employers and payroll providers should continue using their current procedures for reporting and withholding.
The goal of these decisions is to avoid disruptions during tax season and to give the IRS, business and tax professionals enough time to implement the changes effectively. There have already been plenty of disruptions at the IRS this year, with over 25% of the staff having reportedly departed.
The IRS is already working on new guidance and updated forms for TY 2026, including changes to how tips and overtime pay are reported. The IRS said it will coordinate with employers, payroll providers and tax professionals to ensure a smooth transition.
More information will be available in the months ahead about how taxpayers can claim OBBBA-related tax benefits when filing their returns. The Treasury Department and the IRS are preparing more guidance for both reporting entities and individual taxpayers.
In the meantime, information on several of the OBBBA provisions can be found at One Big Beautiful Bill Act of 2025 Provisions.
