The IRS said Thursday, Aug. 7, that it will delay making changes to certain information returns or withholding tables, as part of its phased implementation of the One Big Beautiful Bill Act (OBBBA), until tax year 2026.
The IRS highlighted three points related to the new law in a news release:
- Form W-2, Wage and Tax Statement; existing Forms 1099; Form 941, Employer’s Quarterly Federal Tax Return; and other payroll return forms will remain unchanged for tax year 2025.
- Federal income tax withholding tables will not be updated for these provisions for tax year 2025.
- Employers and payroll providers should continue using current procedures for reporting and withholding.
The agency's decisions to delay changes until 2026 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,” the release said.