Aug. 7, 2025

WASHINGTON, D.C. — The Internal Revenue Service (IRS) has announced important updates regarding the implementation of the One, Big, Beautiful Bill Act (OBBB). As part of the phased rollout, the IRS confirmed that there will be no changes to certain information returns or federal income tax withholding tables for Tax Year (TY) 2025.

Key Highlights for Tax Year 2025 Under OBBB

  • Form W-2 and existing Forms 1099 will remain unchanged.

  • Form 941 and other payroll return forms will not be updated for TY 2025.

  • Federal income tax withholding tables will also remain the same for this year.

  • Employers and payroll providers should continue following current reporting and withholding procedures.

The IRS explained that these decisions are designed to prevent disruptions during the 2025 tax filing season and give businesses, tax professionals, and payroll providers additional time to prepare for future changes.

Looking Ahead: What to Expect in Tax Year 2026

While no major updates apply for 2025, the IRS is already working on guidance and revised forms for Tax Year 2026. These updates are expected to include:

  • New reporting rules for tips and overtime pay

  • Updated procedures for payroll reporting

  • Additional guidance on how taxpayers can claim OBBB-related tax benefits

The IRS will continue coordinating with employers, payroll providers, and tax professionals to ensure a smooth transition when the changes take effect. More detailed instructions will be released in the coming months.

What This Means for Taxpayers and Businesses

For 2025, both individuals and businesses can continue using current IRS forms and withholding tables without changes. However, it’s important to stay informed as 2026 will bring new reporting requirements and tax opportunities under the One, Big, Beautiful Bill Act.

For the latest updates on the One, Big, Beautiful Bill Act of 2025 and IRS guidance for future tax years, visit the IRS website.

For more information, visit the official IRS announcement: IRS: One, Big, Beautiful Bill Act of 2025 Provisions