Regulatory Analysis
Woodland Park, CO passed Ordinance No. 1493 on March 10, 2025. The ordinance reduces the city sales tax rate from 4.09% to 3% effective March 11, 2025. More information may be found here.
The IRS recently updated Form 1099-NEC (Nonemployee Compensation). Beginning with tax year 2025, excess golden parachute payments to non-employees will be reported in Box 3 of Form 1099-NEC. Previously, excess golden parachute payments were reported in Box 14 of 1099-MISC and Box 3 of 1099-NEC was reserved for future use. The Form 1099-NEC revision date […]
On March 11, 2025, the United States House of Representatives passed H.J.Res. 25, which provides for congressional disapproval of the DeFi crypto regulations published on December 30, 2024 (89 Fed. Reg. 106928). On March 4, 2025, the United States Senate passed an identical bill, S.J.Res 3, disapproving of the regulations. Titled “Gross Proceeds Reporting by […]
The IRS recently released the 2025 General Instructions for Forms W-2 and W-3. There are several notable updates. The due date for filing the 2025 W-2 with the Social Security Administration (SSA) has been updated to February 2, 2026 because the statutory due date of January 31 falls on a Saturday. The information about requesting […]
Effective April 1, 2025, The Arizona Department of Revenue is increasing the maximum fee per tire from $2.00 to $4.66 per tire. The fee for new vehicles (where the price of the tires is not listed separately on the invoice) is increasing from $1.00 per tire to $2.33 per tire. The applicable 2.0% tax on […]
Utah recently released details pertaining to legislation that decreased the Prepaid Wireless 911 Service Charge from 4.90% to 4.33% effective January 1, 2025. Sellers are required to collect the Prepaid Wireless 911 Service Charge on all sales of prepaid wireless service and minutes. Sellers must remit the collection of such charges to the State Tax […]
The New York State Department of Taxation and Finance recently published the new Publication 72.5 (Electronic Reporting of NYS-45 Information) for quarterly reporting. Beginning March 21, 2025, Publication 72.5 specifications will be used to file all three parts of NYS-45 in a combined report through NYS-45 Web Upload. The NYS-45 Web Upload is used to […]
Maryland recently released its 2025 Employer Withholding Guide. Changes have been made to reflect the transition to Maryland’s new portal, Maryland Tax Connect (MTC). References to MTC have replaced references to bFile throughout. Three options for filing MW-508 and W-2/1099 through MTC have been added to the guide: Bulk Filer, Transmitter User, or manual key […]
New York recently updated the webpage it maintains for upcoming changes to its withholding requirements. By March 2025, New York intends to significantly overhaul its withholding and wage reporting requirements. The following updates were observed: For NYS quarterly reporting, Publication 72.5 has not yet been released but is expected to be released soon. This publication […]
South Carolina recently released Information Letter 2024-16 (Tax Legislative Update for 2024). The letter includes legislative updates to South Carolina’s income tax withholding rates, effective July 2, 2024, and beyond. Under the new legislation, income tax must be withheld at the maximum individual tax rate – instead of 7%- for the following types of income: […]
New York recently updated Publication 66 (Electronic Reporting of Form NYS-1 Information). This change is part of an overhaul of New York’s withholding reporting processes. There are significant changes to the guide. References to Publication 83 have been replaced with references to Publication 63 throughout the guide. The address for mailing NYS-1-V (Payment Voucher for […]
Effective January 1, 2025, West Virginia requires income tax withholding from gambling winnings at a rate of 4.82%. The same rate applies for backup withholding from gambling winnings. This is a reduction from the previously announced 2025 withholding rate of 4.92%. For 2024, West Virginia required withholding from gambling winnings at a rate of 5.12%. […]
The IRS recently released the 2025 General Instructions for Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G). There are notable changes throughout: Filing and furnishing due dates have been updated throughout the guide to reflect holidays and weekends in 2026. Form 1099-DA (Digital Asset Proceeds from Broker Transactions) has been […]
Effective January 1, 2025, Louisiana has repealed its graduated income tax rates under RS 47:32(A) and adopted a flat income tax rate of 3%. Although this is not reflected in the applicable statute yet, see HB10. HB10 was signed into law as Act 11 on December 4, 2024. Under LAC 61:1.1525(A), if Louisiana income tax withholding […]
In Colorado, a 6.5% excise tax on the net taxable sales of retail vendors of firearms, firearm precursor parts, and ammunition will take effect April 1, 2025. Sales to military and law enforcement are exempt from the tax. Further information regarding the excise tax may be found here.
Nebraska recently released the 2025 Circular EN (Nebraska Income Tax Withholding on Wages, Pensions and Annuities, and Gambling Winnings Paid on or after January 1, 2025). Notably, the guide details important legislative changes to the Nebraska income sourcing and withholding rules for nonresident payees. For taxable years beginning on or after January 1, 2025: Nebraska […]
Illinois recently updated Publication 110 (Forms W-2, W-2c, W-2G, and 1099 Filing and Storage Requirements for Employers and Payers, including 1099-K Electronic Filing Requirements). There are several changes of note. First, the deadline for filing tax year 2024 W-2G and 1099-K records will fall on March 31, 2025, which is one day earlier than last […]
Hawaii recently updated Form HW-30 (Employer’s Annual Transmittal of Hawaii Income Tax Withheld from Wages) and the instructions. HW-30 is used for paper filing HW-2 and W-2 forms with Hawaii. Paper filing is permitted for those not required to file electronically with the IRS. There are significant changes to the HW-30. A ‘Corrected’ checkbox has […]