The IRS announced that 2025 Forms W-2 and 1099 will not change for new reporting requirements related to tips and overtime under the 2025 tax act, commonly referred to as the One Big Beautiful Bill Act or OBBBA. Instead, focus will be on tax year 2026 reporting changes.

This delay could cause confusion for taxpayers who may be eligible for new 2025 deductions and are unsure of qualifying amounts. However, public pushback could change their mind. Explore our federal tax services, and let us keep you informed on regulatory developments like these.

IRS Announcement Below:

The Internal Revenue Service today 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 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, businesses, and tax professionals enough time to implement the changes effectively.

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.

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Published: 08/13/2025

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