No Changes to Information Returns for 2025 Despite OBBB Changes

This article is one in a series on the One Big Beautiful Bill Act (OBBB) that was signed into law in July 2025. Check out other articles discussing impacts of the OBBB here.

The IRS has announced that there will be no changes to certain information returns or withholding tables for tax year 2025 related to its implementation of the OBBB.

Specifically, Form W-2, Forms 1099, and Form 941 and other payroll return forms won’t change for tax year 2025. Further, federal income tax withholding tables will not be updated for OBBB provisions during tax year 2025. The IRS has instructed employers and payroll providers to continue using current procedures for reporting and withholding.

The IRS expects to update information returns, payroll tax returns, and federal income tax withholding tables for tax year 2026 and will communicate these updates with guidance for both reporting entities and individuals in the coming months.

While the OBBB enacted new deductions for qualified tips and qualified overtime pay that are effective for tax year 2025, and the law requires payers to report separate amounts for these items on the recipient’s W-2 or 1099, the IRS has waived this requirement for tax year 2025. We presume this decision was made because of the complexity for payors that would need to account for these items midway through the tax year. We expect future guidance that will allow payors to estimate these amounts on separate statements to be issued to the recipients.

Schreiber Accounting and Advisory is constantly monitoring payroll and tax legislation changes, and stands ready to help clients comply with their payroll and information reporting obligations. Check out the firm’s Outsourced Accounting services, and contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.