Regulatory Analysis
The IRS recently released an updated version of Form 1099-Q (Payments from Qualified Education Programs). This form is used to report distributions from qualified tuition programs (QTPs) under section 529 and Coverdell education savings accounts (CESAs) under section 530. Most notably, a new checkbox has been added to Box 4 and labeled 4b for reporting […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
The IRS recently released the 2025 Form 5498-ESA (Coverdell ESA Contribution Information). The changes to this version are minimal: the tax year has been updated throughout the form and instructions. Further, copy A has had some editorial changes in the right margin, including the addition of a URL that links to the landing page for […]
The IRS recently released the 2025 Form 5498-SA (HSA, Archer MSA, or Medicare Advantage MSA Information). The changes to this version are minimal, with the tax year updated throughout the form and instructions. Copy A has had some editorial changes in the right margin, including the addition of a URL that links to the landing […]
The IRS recently released the 2025 Form 5498 (IRS Contribution Information). Among the changes to the form, the tax year has been updated throughout the form and instructions. Further, a notice about the free file program has been added to the ‘Instructions for Participant’. Copy A has had editorial changes in the right margin, including […]
Michigan recently updated Form 447 (Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s) and its payroll service provider webpage. Michigan plans to introduce a lower electronic filing threshold beginning with tax year 2025 returns filed in 2026. Beginning with tax year 2025 returns filed in 2026, only filers with fewer than 10 income […]
The IRS recently released the 2025 Form W-2 (Wage and Tax Statement). The form itself is relatively unchanged, aside from the tax year and OMB number. In the Notice to Employees, dollar amounts have been updated to reflect increases to the maximum annual social security withholding ($10,918.20) and maximum annual railroad retirement taxes ($6,409.20). In […]
Idaho recently released the 2024 W-2 E-Filing Guide and 2024 Information Return 1099 E-Filing Guide. Among the changes to this version, the tax year and revision date have been updated throughout both guides. The due date for filing 1099 has been updated to February 28, 2025 after falling on February 29, 2024 due to the […]
Minnesota recently updated Fact Sheet 2 (Submitting Form W-2 Information) and Fact Sheet 2A (Submitting Form 1099 Information) for TY 2024 reporting. The tax year has been updated throughout both documents. Other changes are editorial in nature and do not impact reporting compliance.
The District of Columbia (DC) recently released the 2024 Specifications for Electronic Filing of Forms W-2/W-2C. Under What’s New, the guide lists the changes made to the SSA EFW2 / EFW2C Publication for tax year 2024. DC continues to follow the SSA EFW2 / EFW2C format. Additionally, the guide has been updated with instructions for […]