Nonprofit Resources
IRS Confirms Certain Information Returns and Withholding Tables Will Remain Unchanged for 2025
The IRS announced that under the phased implementation of the changes in the One Big Beautiful Bill Act (OBBBA), the following will remain unchanged for tax year 2025:
- Form W-2, existing Forms 1099, and Form 941 and other payroll return forms
- Withholding tables
Employers and payroll providers should continue using their current withholding and reporting procedures throughout the year.
This statement by the IRS does not alter the fact that employees receiving qualified tips or qualified overtime pay, or both, will nonetheless be permitted to claim a deduction for those amounts. Accordingly, employers should be prepared to provide employees with this information despite the fact that they will not be required to include it on Forms W-2 and 1099.
The IRS plans to issue updated guidance and revised forms for tax year 2026, including information on changes to how tips and overtime pay are reported. The Treasury Department and IRS will also provide guidance to help reporting entities and individual taxpayers claim OBBBA-related tax benefits when filing their returns.
For more insight into the OBBBA, explore our articles covering its impact on nonprofit organizations and higher education institutions. Please contact us with any questions.
Ted R. Batson, Jr.
A certified public accountant and licensed attorney, Ted advises exempt organizations of all sizes on a wide range of tax matters, including representation before state and federal tax authorities and assistance with firm audit* or advisory engagements to formulate advice and counsel on important operating and tax issues. In addition to tax advisory services, Ted leads the firm’s tax preparation practice, including IRS Forms 990 and 990-T and related state forms. He also serves on the Church Law & Tax Senior Editorial Advisory Board and is a member of the Missio Nexus Mission Finance and Administration Planning Committee. Note: Although licensed to practice law in Indiana, Ted's services through CapinCrouse do not involve the practice of law and consequently do not result in the creation of an attorney-client relationship.