The IRS announced there will be no changes to certain information returns or withholding tables under the phased implementation of the One Big Beautiful Bill Act for the 2025 tax year.
The US Internal Revenue Service (IRS) has issued IR-2025-82 on 7 August 2025, in which it confirmed that for Tax Year 2025, there will be no updates to specific information returns or withholding tables under the One Big Beautiful Bill Act (OBBBA).
Key points for TY 2025 relating to OBBBA provisions:
- Form W-2, existing Forms 1099, Form 941 and other payroll return forms will remain unchanged for TY 2025.
- Federal income tax withholding tables will not be updated for these provisions for TY 2025.
- 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.
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 OBBBA-related tax benefits when they file their returns. The Treasury Department and the IRS are preparing additional guidance for both reporting entities and individual taxpayers.
US President Donald Trump signed the “One Big Beautiful Bill” into law on 4 July 2025.
