Regulatory Analysis
The Hawaii Department of Taxation has released the 2026 edition of Booklet A, Employer’s Tax Guide, with income tax withholding rates, methods, and tax tables effective as of December 5, 2025 for withholding on wages paid January 1, 2026 and thereafter. Effective January 1, 2026, Hawaii will adopt the 10 or more electronic filing threshold […]
Revenu Québec has released the 2025 Guide to Filing the RL-1 Slip (RL-1.G-V) for reporting employment and other income. The guide covers tax year 2025 and accounts for legislative changes through October 31, 2025. The most significant changes for 2025 relate to security option reporting following the federal announcement deferring the increase to the capital […]
Revenu Québec has released the 2025 Guide to Filing the RL-3 Slip (RL-3.G-V), which reports investment income including dividends, interest, and royalties from Canadian sources. The guide is valid for the 2025 taxation year and subsequent years. The most significant change is the removal of supplementary information codes I-1 and I-2, which were used to […]
The Treasury Department and IRS have released Notice 2025-68, announcing upcoming regulations and providing guidance on Trump Accounts, a new type of individual retirement account (IRA) for eligible children established under the One, Big, Beautiful Bill Act (OBBBA). The notice addresses key information reporting requirements for trustees and employers, and requests comments on withholding and […]
The Internal Revenue Service has released the 2026 Form W-4, Employee’s Withholding Certificate. The 2026 form incorporates significant changes reflecting tax law updates, including deductions for tips, overtime compensation, and passenger vehicle loan interest, as well as substantially increased state and local tax (“SALT”) deduction caps. The child tax credit amount for qualifying children under […]
Kansas re-released its K-99CSV specifications with a 1099-DA format, making it the first state to post custom 1099-DA (digital asset transactions) electronic filing specifications for tax year 2025 reporting. Kansas requires brokers to file Form 1099‑DA if the form reports Kansas income tax withholding or is required to be filed with the IRS. Kansas generally […]
Maine Revenue Services has finalized its electronic file specifications for tax year 2025 Forms 1099 and W-2G information returns. MRS expects to conform with the IRS transition to the Information Return Intake System (IRIS) XML format for Form 1099s beginning with forms issued for tax year 2026, due in 2027. This change aligns with the […]
The Ohio Department of Taxation has released updated electronic filing specifications for tax year 2025 covering Forms 1099-R, 1099-NEC, and 1099-MISC. All specifications follow the IRS Publication 1220 layout and share a February 2, 2026 filing deadline. The specifications include changes to the reporting thresholds for Forms 1099-NEC and 1099-MISC. Ohio now only requires reporting […]
The Social Security Administration (SSA) has revised publications EFW2 and EFW2C, respectively providing electronic filing direction for forms W-2 and W-2c. The revised publications, effective for tax year 2025, make a number of biographic and contact elements required where the specifications previously did not require them. The following elements are now required for electronic filing […]
Earlier this year, Manitoba passed their budget for 2025-2026, which includes provisions to impose the retail sales tax on cloud computing services (e.g. SaaS, IaaS, PaaS). Examples of such services include software subscriptions, data storage services, and remote computer processing services. More information may be found in Bulletin 033.
Effective January 1, 2026, House Bill 218 introduces four changes to New Mexico withholding tax reporting: Quarterly Reporting Expansion. All employers and payers must file quarterly returns reporting employee and payee compensation and New Mexico income tax withheld. Previously, this requirement applied only to employers with more than 50 employees who did not file unemployment […]
Effective January 1, 2026, Illinois will exempt food for human consumption from sales tax by repealing the state’s 1% grocery tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods intended for immediate consumption. Coinciding with this repeal, municipalities and counties may impose their own 1% grocery tax […]
The state of Hawaii increases its rental motor vehicle surcharge by $0.50 annually on January 1 of each year. Effective January 1, 2026, Hawaii will increase the surcharge rate from $7.00 per day (or any portion of a day) to $7.50. The scheduled rate increases are slated to end in 2027.
Colorado legislation HB 1154, will replace the 0.1% Telecom Relay Surcharge on prepaid wireless services with a Prepaid Disability Access Fee at a rate of $0.08. Beginning January 1, 2026, the fee will fund telephone services for those with disabilities.
Beginning December 1, 2025, Illinois will implement its PaintCare Recovery Program. The program will impose various fees on the sale of architectural paint in the state. Find out more information here.
The Arkansas Department of Finance and Administration has released electronic file specifications for tax year 2025 W-2 and 1099 information returns. Notably, the mandatory electronic filing threshold for W-2s decreased from 125 employees to 75 employees starting with tax year 2025 reporting. The due date for electronically filing 2025 W-2 information shifted from January 31, […]
The IRS released Notice 2025-62 on November 5, 2025, providing penalty relief for tax year 2025 regarding new information reporting requirements under the One, Big, Beautiful Bill Act (OBBBA). While OBBBA created income tax deductions for qualified tips and qualified overtime compensation and requires separate reporting of these amounts on Forms W-2, 1099-MISC, 1099-NEC, and […]
The Internal Revenue Service has released the 2025 instructions for Forms 1094-B and 1095-B (health coverage reporting) and Forms 1094-C and 1095-C (applicable large employer reporting). These forms are used by providers of minimum essential coverage and applicable large employers to report coverage information to the IRS and covered individuals. The most significant change makes […]