The IRS announced on August 7 that there will be no modifications to individual information returns or withholding tables for the 2025 tax year as it gradually implements the One Big Beautiful Bill Act (OBBB).
Information returns are essential documents that businesses submit to the IRS, detailing transactions like employee wages. The withholding tables indicate the amount employers must deduct from employees' paychecks for taxes, Social Security, and Medicare.
Signed into law by President Donald Trump on July 4, the OBBB includes various tax-related provisions.
The IRS specified that forms such as W-2, 1099, and 941 will remain unchanged for the 2025 tax year, and the federal income tax withholding tables will not reflect OBBB provisions.
“These decisions aim to prevent disruptions during the tax filing season and provide the IRS, businesses, and tax professionals ample time to implement changes effectively,” the agency stated.
Employers and payroll providers are encouraged to continue using current procedures for tax reporting and withholding.
Looking ahead to the 2026 tax year, the IRS is working on updating forms and creating new guidance, which will include changes to how overtime pay and tips are reported. The agency plans to collaborate with payroll providers, tax professionals, and employers to ensure a seamless transition to the new regulations.
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